Date Published: November 26, 2023

In the dynamic world of construction, Oregon places a strong emphasis on consumer protection. One of the mechanisms employed to safeguard consumers is the requirement for contractors to obtain and maintain a contractor’s license bond.

All Oregon Contractor’s License Bonds are increasing by $5,000 effective January 1, 2024. This change was enacted by House Bill 2922, which was passed by the Oregon Legislature in 2023. The bill aims to provide better protection for consumers by increasing the amount of financial recourse available in the event that a contractor fails to fulfill their obligations.

What is an Oregon Contractor’s License Bond?

An Oregon contractor’s license bond is a three-party agreement between the contractor, the obligee (the Oregon Construction Contractors Board or CCB), and the surety. The bond serves as a guarantee that the contractor willSafeguarding Consumers: The Role of Oregon Contractor's License Bonds comply with all applicable laws and regulations governing construction activities in the state.

Why is an Oregon Contractor’s License Bond Required?

The primary purpose of an Oregon contractor’s license bond is to protect consumers from financial losses arising from non-performance, negligence, or fraudulent practices on the part of the contractor. In the event that a consumer suffers a financial loss due to the contractor’s actions, the bond can be claimed to compensate the consumer for their damages.

Who Needs an Oregon Contractor’s License Bond?

In Oregon, any contractor who performs construction work valued at more than $10,000 must obtain a contractor’s license. This includes general contractors, specialty contractors, and residential contractors. The specific bond amount required varies depending on the type of contractor’s license and the value of the work being performed.

How to Obtain an Oregon Contractor’s License Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

  1. Complete the easy to navigate and secure online application1
  2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
  3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license. 

Benefits of an Oregon Contractor’s License Bond

Apart from fulfilling regulatory requirements, there are several benefits associated with having an Oregon contractor’s license bond:

  • Enhanced credibility: A contractor’s license bond demonstrates a commitment to professionalism and ethical business practices, often leading to increased customer confidence.
  • Risk mitigation: The bond provides a financial safety net for consumers, shielding them from potential financial losses.
  • Reduced legal liability: The bond can help limit a contractor’s legal liability in case of disputes or claims.

Maintaining Your Oregon Contractor’s License Bond

To keep your Oregon contractor’s license bond active, you must make timely premium payments to the surety company. Additionally, you must maintain compliance with all applicable laws and regulations governing construction activities in the state. Failure to do so could result in the termination of your bond, jeopardizing your ability to operate as a licensed contractor in Oregon.

Conclusion

Oregon contractor’s license bonds play a crucial role in safeguarding consumers and fostering a responsible construction industry. By ensuring that contractors adhere to ethical standards and fulfill their obligations, these bonds contribute to the overall integrity and professionalism of the of the construction sector in Oregon.

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Oregon contractor license bonds are increasing by $5,000

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