Oregon Contractor License Bonds

Licensed contractors in Oregon are required to carry a surety bond, which is enforced by the Oregon Construction Contractors Board. Depending on the type of work being done, the Contractor Board sets different bond limits from $10,000 to $75,000.

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Cost of an Oregon Contractor Bond

Oregon contractor license bond costs range from $100 to $1,500 depending on several factors. See the chart below for bond limits and an example of the preferred pricing that corresponds with license type. The bond prices for contractors that perform both residential and commercial would be combined together to make a cumulative bond premium rate.

*Preferred Price
License Type Bond Limit Monthly | Annual
License Type: Residential General Contractor Bond Limit: $20,000 Monthly | Annual: $10 | $100
License Type: Residential Specialty Contractor Bond Limit: $15,000 Monthly | Annual: $10 | $100
License Type: Residential Limited Contractor Bond Limit: $10,000 Monthly | Annual: $10 | $100
License Type: Commercial General Contractor Level 1 Bond Limit: $75,000 Monthly | Annual: $63 | $750
License Type: Commercial General Contractor Level 2 Bond Limit: $20,000 Monthly | Annual: $10 | $100
License Type: Commercial Specialty Contractor Level 1 Bond Limit: $50,000 Monthly | Annual: $21 | $250
License Type: Commercial Specialty Contractor Level 2 Bond Limit: $20,000 Monthly | Annual: $10 | $100
*Pricing shown is dependent on personal credit of the contractor, number of years licensed, and other factors. Rates do not constitute an offer and are subject to change at any time.

If there is a bond requirement you need that is not listed, then call Jet and one of our agents will gladly assist.

What are the Different Types of Contractor Classifications in Oregon?

Oregon has seven types of contractor classes and each has a specific bond requirement. Below is a quick definition of each class more information can be found with the Oregon Contractor License Board:

Residential General Contractor. May perform or supervise an unlimited amount of construction trades for residential and small commercial projects. This is your typical small general contractor. Required to carry a $20,000 license bond and $500,000 of liability coverage.

Residential Specialty Contractor. May perform one or two trades per residential and small commercial projects and potential a third trade if the job is under $2,500 in labor and materials. This is for your typical artisan contractor. Required to carry $15,000 license bond and $300,000 of liability coverage.

Residential Limited Contractor. May perform or supervise an unlimited amount of construction trades for residential and small commercial projects if under $40,000 in total sales for the year and engage in no contracts over $5,000. This is for your typical handyman. Required to carry $10,000 license bond and $100,000 of liability coverage.

Commercial General Contractor Level 1. May perform or supervise an unlimited amount of construction trades for any size project and has 8 years or more experience. This is your for a large general contractor. Required to carry a $75,,000 license bond and $2,000,000 of liability coverage.

Commercial General Contractor Level 2. Same as Level 1, but with 4 year experience or less. Required to carry a $20,000 license bond and $1,000,000 of liability coverage.

Commercial Specialty Contractor Level 1. May perform one or two trades for any size project and has 8 years or more experience. This is your for a large artisan contractor. Required to carry a $50,000 license bond and $1,000,000 of liability coverage.

Commercial Specialty Contractor Level 2. Same as Level 1, but with 4 year experience or less. Required to carry a $20,000 license bond and $500,000 of liability coverage.

How Does the Contractor Bond Work?

The bond is in place to protect those who the contractor is performing work for or doing business with. In cases of contractor misconduct, a claim may be made against the bond in order to be financially reimbursed for any losses incurred. If a claim is proved legitimate and paid out by the surety company, the contractor is held liable for paying that money back to the surety.

A few examples of why a claim may be filed. If a contractor:

Applying for a Contractor Bond

Fill out the application that corresponds with your license type. In almost all cases we offer the bond automatically online.

Bond Applications for Oregon Contractors
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Residential General Contractor

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Residential Specialty Contractor

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Residential Limited Contractor

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Commercial General Contractor Level 1

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Commercial General Contractor Level 2

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Commercial Specialty Contractor Level 1

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Commercial Specialty Contractor Level 2

Oregon Public Works Bond

Some public construction projects will require a $30,000 public works bond if the contract comes out to more than $100,000. The public works bond is supplementary and must be submitted as well as the required contractor bond.

Are There Other Coverage Types Required for Contractors in Oregon?

General liability insurance is a requirement for all contractors in Oregon, which provides coverage in the event a third-party is injured on the work site.

Workers’ comp insurance is needed if a contractor has a certain amount of full-time employees. This protects the workers if they are injured while working or obtain a sickness due to the job.