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Oregon Landscape Contractor Bond
The Oregon Landscape Contractors Board (LCB) requires licensed landscape contracting businesses to have a Landscape Contractors Board Surety Bond. The bond is a form of guarantee that licensed landscapers complete payment obligations and perform work properly subject to ORS 671 set by the LCB. The bond amount varies between $3,000, $10,000, $15,000, and $20,000 depending on the annual job charge, work performed, and experience.
With Jet, purchasing a bond has never been easier. In just a minute you can purchase the bond and it will be instantaneously filed with the Landscape Contractor Board.
What Is the Cost of the Landscape Contractor Bond?
We can offer the landscape contractor bond at $50 for a $3,000 bond, $75 for a $10,000 bond, $113 for a $15,000 bond, and the highest bond limit of $20,000 only costs $150. Most qualify for these rates, but others will have to pay more as rates are based on experience and credit score.
| Bond Limit | Monthly | 1 Year |
|---|---|---|
| $3,000 | $5 | $50 |
| $10,000 | $8 | $75 |
| $15,000 | $11 | $113 |
| $20,000 | $15 | $150 |
Jet Insurance Company has an advantage over traditional insurance companies because we work directly with you. We do not pay commissions to agents or brokers as is the case with the current model of insurance. Jet trims down these overhead costs allowing us to offer the lowest rates in the market along with the best monthly payment option. Our payment plans start without large down payments and no APR financing charges.
How Is the Bond Amount Determined?
The bond amount is based on the annual job charge, work performed, and experience. Annual job charge is defined by the Oregon Landscape Contractors Board as the sum of all contracts for a year with the same owner at the same job site. For example, if you completed a job for $4,000, and six months later at $7,000 for the same owner and the same job site, then your total sum would be $11,000 and you are required to hold a $10,000 bond. Your highest job charge between all of your customers will determine the bond amount.
If the job charge amount increases to a new bond level, then a rider for the existing bond must be submitted to the Landscape Contractor Board. Jet can immediately process a rider for a current bond and file that directly to the LCB.
| Bond Limit | Job Charge |
|---|---|
| $3,000 | $0-10,000 |
| $10,000 | $10,001-24,999 |
| $15,000 | $25,000-49,999 |
| $20,000 | $50,000+ |
All probationary licenses must have at minimum the $15,000 bond regardless if the job charge is lower. Probationary licenses are for applicants who do not meet the qualifications to sit for the exam. The probationary period lasts for two years.
The LCB requires a minimum $10,000 bond for all landscapers performing the following work: walkways, driveways, patios, fences, arbors, or retaining walls not done in conjunction with a landscaping job.
Can Jet File the Bond for Me?
Yes! Jet electronically files the bond to the LCB instantaneously. You will receive a copy of the bond via email for your records as well. If for whatever reason you need to file the bond to the LCB yourself, below are the places you can file the bond.
Fax: (503) 967-6298
Email: [email protected]
Address: 2111 Front Street NE, Suite 2-101, Salem, OR 97301
New licensees must obtain the bond before the LCB will provide a landscape contractor business license. The bond form we email to you must be submitted along with your license application.
Who Needs the Landscape Contractor Bond?
All landscape contracting business licenses in Oregon need a Landscape Contractor License Bond. A Landscape contracting business is an entity responsible for all landscaping work they perform.
Landscape contracting businesses can test into different phases of the license to perform more work. The LCB differentiates the phases between planting, standard, modified, irrigation and backflow, and an all phase license. You can view specific work each phase is able to perform with the LCB here.
The Landscape Contractor Board recommends first-time licensees proceed with the modified license. This is the easiest phase to test into while still allowing a broad scope of work that can be performed. There are about 1,300 active licensed contracting businesses.
Why Is the Landscape Contractor Bond Required?
The bond provides financial restitution should a landscape contracting business cause financial damage to an employer, supplier, or the State of Oregon. Per Oregon Revised Statute (ORS) 671.690, this ensures that the landscape contractor businesses: pay all taxes to the state, pay all persons providing labor, material, or equipment, and perform work subject to ORS 671.510 to 671.760 protecting homeowners and businesses from negligent work, improper work, or breach of contract.
How Can I Avoid a Claim?
Complete your work professionally and follow your contract. Pay all vendors and other landscape companies you contract with. A claim can arise from several things listed in ORS 671.695 statute like negligent work, a breach of contract, or failure to pay a supplier to name a few. The law simply ensures you are properly performing your work per contract and paying all obligations.
What Happens if I Get a Bond Claim?
Immediately contact us if you receive notice of a claim. Jet’s claims department works to weed out frivolous accusations and protect the contracting business from financial harm.
A complaint against a contractor can take a while before Jet is required to payout on the bond, if at all. The Landscape Contractor Board will complete its own investigation once a claim is filed. If the LCB finds evidence to support an order for payment, then the LCB will direct the landscape contracting business to pay the complaint. Any party to the claim can request a hearing that will take the case to arbitration. If after arbitration the contracting business is found to be at fault for the claim and must make payment, then the contracting business has at least 30 days to complete the payment. If no payment is made, then Jet will payout up to the full amount of the license bond.
Unlike an insurance policy, which protects a contractor from accidents, this surety bond protects the public and other businesses that work with the landscape contracting business. The landscaper is ultimately responsible for their own actions and therefore must reimburse the surety company for any claims paid. Think of the surety as providing you a letter of credit that you need to demonstrate to LCB that it’s safe to license you to perform landscape work. It is not Jet’s intention to payout on bond claims, but to limit claims activity through proper education and representation of landscape contractors.
Note, a claim can only be filed on work substantially completed within the last year per ORS 671.700. There is nothing that can be done against your license or bond if a claim is coming from work beyond a calendar year from today's date.
How Is the Landscape Contractor Bond Renewed?
If you are on monthly payments then you will never have to renew! Just make sure your payment information is up to date and the payments will continue as will the bond.
The bond is continuous in form unless Jet files cancellation with the LCB. Therefore Jet does not file any paperwork with the LCB for renewal. Nor does Jet require any updated paperwork from you. We strive to make bonding the easiest part of your licensing with the state.
If paying on annual terms, the bond renewal with Jet is very easy, simply pay the renewal premium. We send notices to renew the bond with ample time to take care of the bond renewal.
Can I Cancel the Bond and Get a Refund?
Jet can quickly file a cancellation notice to the Oregon Landscape Contractor Board and return any unearned premium on annual terms. For monthly payments, we will promptly stop the payment process. The bond has a 30-day cancellation provision, meaning it will not cancel until 30 days after Jet provides a written notice to the LCB and any cancellation will have to take into account that 30-day period while the bond is still active.
If the bond cancels because you forgot to pay the renewal or missed a monthly payment, we can quickly file a reinstatement to get the license back in order. In the event that you miss a monthly payment, we will send you a notice before we file a cancellation. We hope to avoid any cancellations if possible to ensure that your license is in good standing.
You will receive a copy for your records immediately and be ready for the NMLS notice to confirm bond filing information.
What Is a Landscape Construction Professional?
The landscape construction professional license is required by the LCB for the person responsible for supervising unlicensed employees of a landscape contracting business. For individuals running their own businesses, they need to get a professional license and the landscaping contracting business license.
The professional licensee is not required to have a bond, as with the landscape contracting business. Every landscape contractor business must have an owner or employee with a professional business license per the Landscape Contractor Board. A landscape construction professional is a person with the experience and knowledge qualified to work and/or supervise landscape work as defined by ORS 671.520.
Landscape Contracting Business: The landscape contracting business is the entity that contracts for landscaping work and carries the bond, liability insurance, and workers' compensation.
Landscape Construction Professional: Responsible for supervising the unlicensed employees of the landscape contracting business.
Are Landscape Contractors Required to Carry Insurance?
Landscape contractor businesses are required to obtain liability insurance and workers' compensation if they have employees. Per chapter 808 of Oregon Secretary of State, any business that has employees, has 3 or more corporate officers/LLC members that are not immediate family members or have more than 2 corporate officers/LLC members, must have workers compensation insurance. If none of those apply to your business, then you would be exempt from workers' compensation. If you are using a leasing company then the LCB requests proof of the leasing company's workers' compensation coverage.
The liability insurance must be at least $500,000 and a certificate of insurance showing the Landscape Contractor Board as a certificate holder must be submitted to the board.
Other Bond Requirements for Oregon Landscape Contractors
If you perform work on public works projects that have a total project cost of $100,000, then the Bureau of Labor and Industries (BOLI) requires you to obtain a public works bond with a limit of $30,000 and file it to the CCB. The public works bond is supplementary and must be submitted as well as the required contractor bond.
