What is a surety bond?
A surety bond is a promise by a bonding company to pay all or a portion of a CCB final order if a contractor fails to pay the order in order to protect consumers.
A property owner can file a CCB complaint against a contractor for breach of contract or improper work. If the CCB orders a contractor to pay money to the complainant, the contractor must pay as ordered. If the contractor does not do so, the bonding company will pay the money owed, up to the amount of the bond.
A Construction Contractors Board residential or commercial bond is required. The type depends on the contractor's endorsement. Contractors who are endorsed to do both residential and commercial work must have both a residential and a commercial surety bond.
The bond(s) MUST accompany the application. Please do not submit the bond(s) separately, as it will delay the issuance of the license.
CCB bonds are available from many bond and insurance companies at varying prices. Check the phone book yellow pages or call your insurance agent for assistance.
- The bond(s) must be issued on a CCB bond form. No other bond form will be accepted. If your bond company does not have the CCB bond forms, they should call the CCB at 503-378-4621.
- The bond(s) must be issued in the full legal name of the sole proprietor; all partners full legal names in a partnership or joint venture (JV); the full legal names of all partners in an LLP and the name of the LLP; the name of the corporation, LLC or trust. JV’s, LLP’s, Corp’s, LLC’s and trusts must match the name filed at the Oregon Corporation Division.
- Limited partnerships should contact the CCB at 503-378-4621 for special instructions.
- The bond(s) must have the original signature of the bond company’s attorney-in-fact.
- If a power of attorney form is attached to the bond, do not remove it.
- The bond(s) is not valid until it is submitted to and is put into effect by the CCB. The bond(s) must be submitted to the CCB no later than 60 days from the date the bond(s) was signed by the bond company or it is no longer valid.
- All bonds must be continuous until canceled.
- Residential general contractor: $20,000
- Residential specialty contractor: $15,000
- Residential limited contractor: $10,000
- Residential developer: $20,000
- Home services contractor: $10,000
- Residential locksmith services contractor: $10,000
- Home inspector services contractor: $10,000
- Home performance score contractor: $10,000
- Commercial General Contractor Level 1: $75,000
- Commercial General Contractor Level 2: $20,000
- Commercial Specialty Contractor Level 1: $50,000
- Commercial Specialty Contractor Level 2: $20,000
- Commercial Developer: $20,000