Oregon law requires an Oregon contractor bond from anyone who works for compensation in any construction activity involving improvements to real property. The principal mus alsot 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. Interestingly, the Oregon contractors bond and license are also required of individuals that purchase homes, remodel or upgrade them themselves and resell them. An applicant for a license must post with the Construction Contractors Board a surety bond with 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 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 notices the Board of the bond’s cancellation. The bond may be continued for an additional period by the surety’s continuation certificate. Except as provided in subsection (4) of ORS 701.068, the aggregate liability of the surety under the surety bond for complaints against the contractor may not exceed 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. For surety underwriters it is important to understand 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. Oregon surety leader, Surety One, Inc. focuses on supporting 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 contractor bond application or information about any surety need.
