Oregon Construction Flagging Contractor License Bond
The Oregon Construction Contractor Board (CCB) requires a $20,000 bond for construction flagging contractor licenses. The bond protects the public and businesses working with the construction flagging contractor by ensuring the contractor will pay a court judgment should their work cause financial harm. Flaggers should diligently follow construction safety protocols and all general construction laws per Oregon Statute Chapter 701 to avoid any disputes.
The CCB added the construction flagging contractor license in July 2017 to allow individuals to perform construction flagging without undergoing the process to become a residential or commercial contractor.
How Much Is the Construction Flagging Contractor Bond?
The construction flagging contractor bond costs starts at $240 annually or $24 monthly. Jet works directly with you, cutting out the middleman and their excessive commission, and passing the savings on to you.
| Oregon Flagging Contractor Bond Cost | |
|---|---|
| Residential Mortgage Loan Amounts | Bond Amount |
| Monthly | $24 |
| 1 Year | $240 |
| 2 Years | $420 |
| 3 Years | $600 |
Bond rates are based on personal credit and experience. At Jet, we offer low monthly rates with no down payment to make the bond affordable regardless of your credit. Traditional insurance companies offer financing with high percentage APRs and high down payments.
How Is the Construction Flagging Contractor Bond Filed?
Jet electronically files the construction flagging contractor bond to the Oregon Construction Contractor Board. A copy of the bond will be emailed to you for your records.
Construction flagging contractors applying for a new license must file the bond along with the application. You can send the application paperwork via email, fax, or mail below.
Fax: (503) 373-2007
Email: [email protected]
Mail: P.O. Box 14140, Salem, OR 97309-5052
Why Is the Construction Flagging Contractor Bond Required?
The bond is for the exclusive purpose of ensuring payment of court judgments should you be found at fault in accordance with Oregon Revised Statutes (ORS) Chapter 701. A court judgment could be the result of a flagging contractor causing damages while directing the flow of traffic. If a construction flagging contractor does not pay a court judgment, then the surety will payout up to the full amount of the bond. However for those that expect to have no problems with a bond claim, you can think of this bond as simply a requirement for licensing. The CCB will not allow you to contract without having the bond in place.
How Can I Avoid a Bond Claim?
Construction flagging contractors are regulated very similarly to contractors and must adhere to the same Oregon Revised Statute Chapter 701. However, the work performed by flagging contractors is very specific and not as broad as contractors, therefore flagging contractors need to only focus on a few things to avoid a claim.
Make sure that you direct the flow of traffic without causing any harm. A harm can be physical or financial. A quick mental error in directing the flow can cause a vehicle to run into another vehicle, or worse, a person. So always ensure that you are following standard safety protocol when flagging. If you are unsure as to Oregon standard on street traffic control please visit the Oregon Department of Transportation work zone traffic control page.
The only other risk for a claim from construction flagging would be nonpayment of wages to an employee.
Before a claim can be filed against the bond, the CCB must first be informed of the dispute and have a court judgment against the flagging contractor. A complaint to the CCB cannot be filed unless the claimant sends a notice via certified mail to the flagging contractor at least 30 days in advance, ORS 701.133. At any point in a dispute, the claimant can settle with the contractor, and vice versa. It is best to handle a dispute at the inception of the problem before a third party gets involved.
What Happens If I Get a Bond Claim?
Contact us immediately once you receive a complaint. Jet’s claims department works hard to protect construction flagging contractors from claims, however there is only so much we can do when a bond claim is due to nonpayment of a court judgment. It is not Jet’s objective to pay bond claims, but to prevent claims through proper education and representation of contractors.
A civil court will ultimately decide whether or not you were at fault for damages that arise from construction flagging. The Oregon Construction Contractor Board will mediate a dispute between any party filing complaint against a flagging contractor. The CCB will provide their input by suggesting either the claimant to drop the dispute, or the contractor to pay for damages. If that is not successful, then they require the claimant to take the dispute to civil court if they haven’t already.
If you believe you are not at fault, dispute the claimant at every third party arbitration. However, if you are found at fault in civil court, especially after appeal, then you should pay the judgment. If a judgment is not paid then the CCB can order the bond company to payout up to the full bond amount to satisfy the judgment. The bond is not like insurance so if a claim is paid on the bond, you are required to reimburse the surety company. With that in mind, it is best to handle a judgment from the court, or even before that, any dispute as it arises.
Beyond a payout on the bond, a dispute can bring up other issues for flagging contractors. The CCB can suspend, revoke, or refuse to renew a license per ORS 701.102 during a dispute depending on the severity of the problem, or the communications (or lack thereof) of the flagging contractor. The CCB can take punitive action by placing a license in probation or require a higher bond limit. In the end, the CCB can take a wide range of actions against your license if they find it appropriate for any reason. It's always good practice to be courteous and communicative with the CCB in a dispute, or any matter.
Who Needs a Construction Flagging Contractor License?
A construction flagging contractor license is the newest license to be offered by the Oregon Construction Contractor Bond. This license allows for an individual to direct the flow of traffic on public roads to prevent accidents and confusion for vehicle traffic and construction near or on the roadway. This license does not require an individual to take a test or have any prior experience to obtain it.
Businesses regulated by the Oregon Public Utility Commission, commercial contractors, and residential general contractors are not required to have this license to legally perform construction flagging activity.
Can I Cancel the Bond and Get a Refund?
You can send in a written request for cancellation of the bond in writing and Jet will quickly turn around cancellation notice to the Oregon Construction Contractor Board. Once the cancellation is processed we can return any unearned premium on annual term bonds. For monthly payments we will promptly stop the payment process. The bond has a 30-day cancellation provision meaning it will cancel 30 days after the cancellation notice is received and processed by the CCB. Jet’s return calculation must take into account the 30-day cancellation provision in which the bond is still active.
Reinstatements can be quickly filed to the CCB in the event the bond cancels due to nonpayment of the renewal premium or monthly payments. We will send you a cancellation notice before the cancellation is filed to the CCB to ensure you have an opportunity to rectify any missing payments.
Other Bond Requirements
Public Works Bond: The Bureau of Labor and Industries (BOLI) requires you to obtain a public works bond for $30,000, filed to the Construction Contractor Board, if you perform work on projects over $100,000 in total project cost. This bond is in addition to a flagging contractor bond.
