Oregon Water Well Constructor Bond
The State of Oregon Water Resources Department (WRD) requires all people who build, repair, alter, convert or shut down a well to obtain a Water Well Constructor Bond. For contractors hired to build or work on someone’s well a $20,000 surety bond is required. Landowners who build or work on their own well must get a $10,000 surety bond to cover the project.
| PURCHASE | $20,000 Water Well Constructor Bond |
| PURCHASE | $10,000 Landowner Water Well Bond |
The state requires the bond as a financial form of protection should the well constructor create any damages to the state or public by abandoning the job or departing from construction standards. Jet has the best rate available for water well constructors, whether for the individual or professional constructor.
What Does the Water Well Constructor Bond Cost in Oregon?
The cost for the $20,000 Water Well constructor Bond starts at $100 for a year or $10 monthly and is based on a credit check of the owner. For individuals needing the $10,000 Landowner’s Water Well Bond, the cost is $100, but is guaranteed at that rate. Either way, the bond can be issued automatically online in minutes.
| Bond Limit | Monthly | Annual |
|---|---|---|
| $10,000 Landowner Bond | $10 | $100 |
| $20,000 Constructor Bond | $10 | $100 |
By cutting out the middleman, who collects fees and commissions, Jet is able to provide the bond at this lowered rate. For contractors who need to renew this bond each year to maintain their license with the WRD, Jet has a monthly option at $10 a month.
Can Jet File the Bond to the WRD for Me?
Yes! Jet can email the bond directly to the Oregon Water Resources Department to get it filed immediately and send the signed and sealed bond form via mail. Other insurance companies will send you the bond form to submit yourself to the WRD and often include a fee to do so. With Jet, you receive a copy of the bond for your records and leave the filing to us.
That said Jet does allow the well constructor, upon request, to have the original bond sent to them in the case they want to submit the original bond with their application form and permit fee.
The bond form is sent to the WRD at the following address:
State of Oregon Water Resources Department
725 Summer Street NE, Suite A
Salem, OR 97301
Can I Cancel My Water Well Constructor Bond and Get a Refund?
For water well constructors with a $20,000 surety bond, the bond can be cancelled at any time. Jet will send a prorated refund for any amount remaining on the bond. The Oregon Water Resources Department requires 30 days notice before the bond is cancelled which unfortunately reduces the time remaining on the bond and therefore must be factored into the prorated refund.
If you select the monthly option, the bond cancels when payments stop or when you request cancellation.
For those building their own wells the $10,000 surety bond can be cancelled with the WRD providing release of liability to the Surety or by the Sureties request. Unfortunately, there are no refunds available for the $10,000 bond. The bond is fully earned due to outstanding risk at the outset of bond issuance allowing permitted work to begin.
How Does a Well Constructor Avoid a Claim on the Bond?
A well constructor can avoid running into trouble by following the standards set forth by the Oregon Secretary of State and with proper well construction. Some potential bond claims can come from abandoning construction or departing from construction standards in regard to casings, fittings, valves or pumps. Per state statute OAR 690-240-0005 the condition, use, maintenance, conversion, and abandonment of wells is, ultimately, the responsibility of the property landowner, but penalties can be assessed to other parties like the well constructor.
A claim on a Water Well Constructor Bond can be made by the public of the WRD if they are damaged.
The public (most likely the person hiring a well constructor) can file a claim if work on a well is abandoned, faulty or not up to code. This does not apply to the $10,000 landowner’s bond as you cannot file a claim on your own faulty work.
The Oregon Water Resources Department is charged with the protection of Oregon’s water supply and the public health. Any construction, alteration or abandonment of a well that leads to damage to the environment or public safety can result in a claim on the bond from the department. The WRD has up to three years from the time the work was performed to make a claim against the bond held at that time.
What Happens If I Get a Water Well Constructor Bond Claim?
Any claim coming from the public will be investigated by Jet to ensure the claim is valid. However, a claim originating from the OWRD has been thoroughly investigated by the WRD. The Water Resource Department gives the violator ample time to rectify the violation before any penalties are assessed. Bond claims from the WRD will be paid in a timely fashion by Jet as there is little Jet can do when faced with a claim from a government agency.
Jet will make payment to the claimant up to the amount of the bond limit, whether a $10,000 or $20,000 bond limit amount. Unlike a business insurance policy, the bond protects public interests and not the well constructor. The well constructor remains responsible for their actions and must reimburse any Surety payout.
In addition to a bond claim, constructor and landowners face civil penalties from the OWRD up to $1,000. Constructors also face possible suspension and revocation of their license following a violation.
| Claim Timeline | Jet procedure |
|---|---|
| 30 days from receiving claim notice |
Jet acknowledges receipt of claim in internal files and with claimant. Jet will reply to communications concerning the claim within reason. |
| 45 days from receiving claim notice |
Jet will complete its claim investigation; or Request for more time to investigate, if necessary. |
| 30 days from receiving properly executed proof of loss from claimant |
Jet accepts or denies the claim; or Requests for more time to investigate. |
| 45 days from requesting more time to investigate |
Jet accepts or denies the claim; or Requests for more time to investigate. |
What Is the Purpose of the Water Well Constructor Bond?
The Oregon Water Resources Department uses the bond to guarantee financial recovery for damages caused to Oregon’s water and to the public caused by the construction, maintenance and abandonment of a water well. The water supply is a shared resource and each person has the responsibility to take into account Oregon’s geologic foundation and aquifer when drilling into the earth. The financial security provided by the surety bond is a necessary component for the State of Oregon to protect its people and their water.
The $20,000 Water Well Constructor Bond Requirement
People who build or work on wells for others are required to be licensed with the Oregon Water Resource Department. To be licensed the OWRD requires a $20,000 bond to be active and filed with the department. The Water Well constructor Bond must be in the individual’s name who conducts the business of well construction and not in the name of their company. With Jet this process is a simple application and payment of $150 all done online in minutes.
This $20,000 Water Well constructor Bond is continuous until cancelled, meaning it will stay in place until the OWRD or Jet cancels the bond. As long as the monthly or annual payments (depending on what you choose) are made the bond will remain active.
The $10,000 Landowner's Water Well Bond Requirement
For individuals wanting to build or work on a water well on their property a license is not required. However, the landowner must obtain a $10,000 surety bond to receive a permit to do the work. Landowners will need to submit the Landowner’s Well Permit Application, $225 in fees and a start card in addition to the bond to receive a permit.
With Jet, the bond can be executed at any time with no delay. Purchase right when you need the bond and Jet will send the bond form to the Water Resources immediately.
The Landowner’s Permit to do water well work lasts six months. The bond will cancel when the permit does.
Are There Any Other Bonds That Well Constructor's Need?
There are no other bonds that water well constructors need with the OWRD. However, if a well construction company performs any other classification of construction in Oregon they will need to obtain a bond to be licensed for that work. The Oregon Construction Contractors Board enforces this bond requirement which varies based on the type of work and experience of the contractor.
Water Well Constructor Bond Form:
Landowner Water Well Bond Form:
