Oregon Statutory Public Works Bond
Public works are construction projects that typically include highways, roads, buildings, and all other improvements under the definition of ORS 800, among others, that are funded by the local, state, or federal government. A 2017 study revealed that the spending for local public works in the US reached nearly 257 billion dollars. Given the financial and overall economic significance of these infrastructure, contractors are given strict guidelines in accomplishing each project, including the proper licensing and pre-requisites like the Oregon Statutory Public Works Bond.
What is the Oregon Statutory Public Works Bond?
Contractors who aim to qualify for public constructions above $100,000 are mandated by Oregon law to secure a bond of $30,000. This bond will be used to protect the workers involved in the construction. According to the Oregon Construction Contractors Board (CCB), the bond will be used solely for the wage claims that may potentially be filed with the Bureau of Labor and Industries (BOLI).
There are certain provisions that may exempt you from the bond. Others who do not meet the criteria for this bond must work secure their bond with their bond agent and a different bond form to the CCB.
Why do you need the Oregon Statutory Public Works Bond?
The bond is a pre-requisite prior the beginning of any construction and is a guarantee that workers will be duly paid in the event the contracting company fails to complete the project and collect claims. In addition, the applicant is guaranteed the good reputation of your company; financial security and credential boost; available full line of credit; confidentiality of your transactions - unless required by law; and, access to professional advice counseling from lawyers, estimators, and similar professionals.
How does the bond work?
The parties in the agreement are the Principal (contractors or applicants), Obligee (State of Oregon), and Surety/Bond Company or Obligor (surety bond provider). The bond must be filed with the Oregon Construction Contractors Board and must be issued by a surety bond provider certified by the state’s Insurance Department.
How much does the bond cost?
You may expect the bond to be priced between $450 and $600. Further, the premiums are usually between 1.5% and 2% with the latter being the worst rate you can get. To give you a better picture and help you prepare for the credit check the surety company will conduct, here are the determining factors for the premium rates:
- employer’s credit score
- industry experience
- business history
- surety provider’s background
How can I secure the bond?
Transact with a reputable surety company today and secure your Oregon Statutory Public Works Bond the fast and easy way. If you have more questions or are in need of more information, get in touch with us today.
Make sure you have gathered and provided accurate information on the following for the speedy processing of your application:
- Nature of your business
- Credit Score
- Financial strength
Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond. Once the assessment is done, we will promptly issue your bond and send it your way!