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| Oregon Residential Limited Contractor ($10,000) Bond |  |
| Oregon Residential Limited Contractor ($15,000) Bond | |
Introduction
An Oregon Residential Limited Contractor is a professional or business entity licensed by the Oregon Construction Contractors Board (CCB) to perform small-scale residential construction, repairs, or improvements. This license classification is specifically designed for contractors whose annual gross volume of work (labor and materials) does not exceed $40,000.
This type of license is ideal for individuals or businesses that:
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Offer minor remodeling, handyman services, or residential maintenance
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Do not subcontract significant portions of their work
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Operate on a limited scale, typically as a sole proprietor or with minimal staff
To legally perform residential work under this license, contractors must meet the CCB’s requirements, including securing a Residential Limited Contractor Bond, providing liability insurance, and completing mandatory training. This licensing tier supports entry-level contractors or small operations by aligning financial and insurance requirements with the scope of work they perform.
The Oregon Residential Limited Contractor Bond
The Oregon Residential Limited Contractor Bond is a surety bond required by the Oregon Construction Contractors Board (CCB) for contractors licensed under the “Residential Limited Contractor” classification. This bond serves as a financial guarantee that the contractor will comply with all applicable laws, regulations, and contractual obligations related to residential construction work in the state of Oregon.
Who Needs This Bond?
Residential Limited Contractors are individuals or businesses that perform smaller-scale residential construction services. These contractors typically:
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Work on projects valued at $40,000 or less annually (including labor and materials)
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Perform limited-scope repairs, improvements, or installations in residential settings
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Do not manage large crews or subcontract significant portions of the work
The Oregon CCB requires these contractors to obtain a bond to ensure consumer protection and compliance with statutory obligations.
Purpose Of The Bond
The Residential Limited Contractor Bond protects the public and the state by:
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Providing recourse for consumers harmed by negligent or unlawful contractor actions
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Ensuring that claims for damages due to awful workmanship, code violations, or breaches of contract can be addressed financially
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Supporting enforcement of Oregon Revised Statutes Chapter 701, which governs contractor licensing and conduct
Bond Amount
As of current CCB guidelines, the required bond amount for a Residential Limited Contractor is $10,000 and $15,000. This amount may be subject to change by the Oregon CCB, so contractors should verify current requirements at the time of application or renewal.
Parties Involved
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Principal: The contractor who must obtain the bond
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Obligee: The Oregon Construction Contractors Board
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Surety: The bonding company that issues the bond and guarantees the contractor’s compliance
Why It Matters
Obtaining a Residential Limited Contractor Bond is a key step in becoming licensed and maintaining good standing with the CCB. It demonstrates that a contractor is financially responsible and legally compliant—essential qualities for building trust with clients and operating legally in Oregon’s residential construction industry.
To Obtain The Bond Through Swiftbonds
Understand the Bond Requirement
The Oregon Construction Contractors Board (CCB) mandates that contractors with a Residential Limited Contractor license secure a $10,000 or $15,000 surety bond. This bond ensures compliance with state laws and provides financial protection to clients in case of contractor misconduct or failure to meet contractual obligations.
Access Swiftbonds’ Oregon Bond Forms
Visit Swiftbonds’ Oregon Bond Applications and Forms page to locate the necessary application for the Residential Limited Contractor Bond. Ensure you select the correct bond form corresponding to your license type.
Complete the Bond Application
Fill out the application with accurate information, including:
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Business Details: Legal name, address, and entity type (e.g., sole proprietorship, LLC, corporation)
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CCB License Number: If already issued; otherwise, leave blank
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Bond Amount: $10,000 or $15,000 as required for Residential Limited Contractors
Ensure all sections are completed thoroughly to avoid processing delays.
Submit the Application to Swiftbonds
After completing the application, submit it to Swiftbonds for underwriting. The underwriting process assesses factors such as credit history and business experience to determine eligibility and premium rates.
Receive and Review the Bond
Upon approval, Swiftbonds will issue the bond. Review the bond document to ensure all information is correct, including the bond amount, principal name, and Obligee details.
Submit the Bond to the Oregon CCB
Send the original signed bond, along with any required documentation, to the Oregon Construction Contractors Board at Construction Contractors Board
Ensure the bond is submitted within 60 days of the bond’s effective date to maintain its validity.
Maintain Compliance
Keep the bond active by renewing it as required and adhering to all CCB regulations. Failure to maintain the bond can result in license suspension or revocation.
Conclusion
The Oregon Residential Limited Contractor Bond is a crucial requirement for small-scale residential contractors operating in Oregon. Mandated by the Oregon Construction Contractors Board (CCB), this $10,000 surety bond ensures that contractors uphold their legal responsibilities, deliver quality workmanship, and comply with all applicable state laws under ORS Chapter 701.
Frequently Asked Questions (FAQs)
How long is the license valid?
The license is typically valid for two years and must be renewed along with proof of bond and insurance.
Can I exceed the $40,000 annual limit?
No. If your total labor and materials exceed $40,000 in a calendar year, you must upgrade to a Residential General Contractor or another appropriate license classification.
What happens if I don’t obtain the bond?
Failure to secure and maintain the required bond can result in denial, suspension, or revocation of your CCB license and legal penalties for unlicensed contracting.
Can I hire subcontractors as a Residential Limited Contractor?
Yes, but only on a very limited basis. The Residential Limited license is intended for small operations. If your business involves frequent subcontracting or project management, you may need to upgrade to a Residential General Contractor license.
Do I need to register a business name with the state?
Yes. If you operate under a business name (DBA), you must register it with the Oregon Secretary of State – Corporation Division before applying for a CCB license.
How do I renew my license?
You must:
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Submit a renewal application every two years
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Maintain your surety bond and insurance
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Complete required continuing education, if applicable
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Pay the renewal fee