Oregon Residential Contractors License Bonds
The State of Oregon Construction Contractors Board (CCB) requires contractors for residential projects to apply for a bond in order to secure their permits and activate their licenses. These requirements are needed to ensure the compensation of the public should accredited businesses cause any licensing infractions, such as damages to public properties or accidents, during the course of the construction.
What is the Oregon Residential Contractors License Bond?
Possession of the Residential Contractors License Bond Possession is a prerequisite to the approval of the contractors license that guarantees you can be trusted by the State of Oregon. It is a legal agreement that holds applicants responsible for any construction made under their supervision and is mandatory for the activation of their licenses. It also ascertains their compliance with all city codes and regulations and engineering standards.
For more information, you may read the CCB Application for Commercial License.
Why do you need an Oregon Residential Construction Contractors License?
The State of Oregon mandates professionals involved in the residential real estate, especially the construction industry, to secure their licenses prior their operations. In the license endorsement, applicants must specify the type of structure - residential structure, small commercial structure, or large commercial structure - and endorsement classifications. The latter category will dictate the scope of work, limitations, and bond and insurance.
More details about the Oregon Residential Construction Contractors License
The Oregon Residential Contractors License Bond must be issued by a surety bond provider certified by the state’s Department of Insurance. The parties in the agreement are:
- Principal (business or permittee)
- Obligee (State of Oregon)
- Surety/Bond Company or Obligor (surety bond provider).
The Obligor will guarantee the compensation (performance bond) of the Obligee should the Principal fail to meet their standards or violate other licensing provisions. The Obligor will assess the validity of claims, where claims may only amount to the total penal sum agreed upon in the bond form. The Principal shall reimburse all expenses covered by the Obligor.
The Obligor is secured through an indemnity agreement as the licensed business is mandated by law for the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond and shall ascertain the businesses responsibility over their dealings.
How much does it cost?
The cost of Residential Contractors License Bonds in the State of Oregon will depend on the employer’s credit score, industry experience, business history, and the surety provider’s background. The total bond amount of these are set at different prices and are typically charged as such:
$240 - $1,000
$180 - $750
$120 - $500
Visit here to get your surety bond quote today!
How do I obtain this bond?
At Surety Bond Authority, we are dedicated to help you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.
To secure your bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.
In the assessment phase, our underwriter will need the following information:
- Nature of your business
- Credit Score
- Financial strength
For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time.