Oregon law requires an Oregon construction contractors surety bond from anyone who works for compensation in any construction activity involving improvements to real property. According to the Construction Contractors Board, "A CCB surety bond provides a limited amount of financial security for property owners. Surety bonds can only be claimed upon in the event that the bonded contractor is ordered by the CCB to pay damages as the result of a CCB final order, and the contractor fails to pay the order within 30 days. CCB surety bonds are very small compared to the volume of business performed by most construction businesses and are designed to provide an incentive for contractors to pay CCB orders, as opposed to being a comprehensive safety net for consumers."
The principal must also be licensed with the Oregon Construction Contractors Board (CCB). The regulated business activities include roofing, siding, painting, carpentry, concrete, on-site appliance repair, heating and air conditioning, home inspections, tree service, plumbing, electrical, floor covering, manufactured dwelling installations, land development and most other construction and repair services. An applicant for a license must post with the CCB a bond from a corporate surety authorized to do business in Oregon and in an amount set forth in ORS 701.081 or 701.084. If the contractor is going to hold endorsements as both a residential contractor and a commercial contractor, then the contractor must post an Oregon contractor bond for each endorsement. The surety bond for a residential contractor must guarantee that the contractor will pay amounts ordered paid by the board under ORS 701.145. The surety bond for a commercial contractor must guarantee that the contractor will pay amounts ordered paid by the Board under ORS 701.146.
Oregon contractors surety bond obligations filed under the licensing statute must remain in effect for at least one year or until depleted by payments under ORS 701.150, 701.153 and 701.157, unless surety cancels the bond. The bond may be continued for an additional period by the surety's continuation certificate. The obligation is not cumulative, being limited to the penal sum of the Oregon contractor bond no matter how many years that it is in force. The bond required under Section 701 is for the exclusive purpose of payment of final orders and arbitration awards of the board in accordance with the law. The contractor and his or surety should also be aware that failure of surety to immediately pay a final order will likely result in assessment of costs, attorney fees to the prevailing party as part of the costs, and twice the amount of any damages that the Board ordered the surety to pay on the complaint, if the surety arbitrarily and capriciously refused to pay a final order. License applications and surety bonds should be forwarded to:
Oregon Construction Contractors Board
Construction Contractors License Surety Bond
700 Summer Street, N.E., Suite 300
Salem, OR 97309-5052
Oregon surety bond leader, Surety One, Inc. is a specialist in providing for the bonding needs of the construction and commercial contracting industries. We offer this class of surety bond to all applicants in every state where contractors must be bonded. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Oregon construction contractors surety bond application or information about any surety need.