Surety Bond Encyclopedia

Commercial Developer ($25,000) Bond - Statewide in Oregon

Brief Summary

If your Oregon commercial developer bond was written before 2024, check the amount. House Bill 2922 raised it from $20,000 to $25,000 on January 1, 2024. The bond is filed with the Construction Contractors Board on the CCB Commercial Surety Bond form, you pay a premium rather than tying up $25,000 in cash, and most applicants have the executed bond in hand quickly.

Oregon requires a $25,000 surety bond from anyone holding the Commercial Developer endorsement on a Construction Contractors Board license. The figure is set by ORS 701.084(5) and rose from $20,000 on January 1, 2024. The endorsement also requires general liability insurance of at least $500,000, and the license runs for two years.

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How to Apply for a Commercial Developer ($25,000) Bond:

Confirm your company owns the property or an interest in it, intends to sell, and does no construction work itself.
Have the legal business name exactly as it appears on the CCB license application.
Owner names, home addresses and Social Security numbers for the credit review.
Complete the bond application and review the quoted premium.
Pay the premium and receive the executed $25,000 CCB Commercial Surety Bond with the agent's power of attorney attached.
Make sure the CCB receives the bond within 60 days of its effective date, along with proof of at least $500,000 in general liability insurance.

Detailed Information About the Oregon Commercial Developer ($25,000) Bond:

Who needs the Commercial Developer endorsement

Under ORS 701.005, a developer is a contractor that owns property or an interest in property and arranges for construction work or other improvements with the intent to sell the property. A commercial developer does this on property zoned for or intended for small or large commercial structures.

The CCB endorsement chart lists four conditions. The developer owns the property or an interest in it, arranges for commercial construction with the intent to sell, works in association with one or more licensed general contractors who have sole responsibility for overseeing all phases of construction, and does not perform any construction work on the property itself. If your company swings a hammer on the job, this is the wrong endorsement and a commercial general contractor endorsement applies instead.

The bond amount went up

ORS 701.084(5) requires a $25,000 surety bond under ORS 701.068 and general liability insurance of at least $500,000 under ORS 701.073. The 2023 Oregon Legislature raised the bond amounts in House Bill 2922, effective January 1, 2024. Before that date the commercial developer bond was $20,000. The CCB contacted licensees who were out of compliance after the change and gave them a deadline, so an older $20,000 bond should be replaced or increased by rider.

How the bond works

The bond names the State of Oregon Construction Contractors Board as obligee and must be written by a surety authorized to transact surety business in Oregon, on the CCB Commercial Surety Bond form (Rev 08/2023). A power of attorney for the signing agent is attached, and the bond is not valid for licensing unless the CCB receives it within 60 days. Under ORS 701.068 the bond stays in effect until depleted by payments or cancelled by the surety, and the board can require a new bond after the surety pays claims.

Premium

You pay a premium, not the $25,000 face amount. The surety sets the premium after reviewing the owners' credit and the company's background.

Eligibility and Requirements for a Oregon Commercial Developer ($25,000) Bond:

Bond amount of $25,000 under ORS 701.084(5), not the pre-2024 figure of $20,000.
State of Oregon Construction Contractors Board named as obligee.
CCB Commercial Surety Bond form, Rev 08/2023.
Surety authorized to transact surety business in Oregon.
General liability insurance of at least $500,000 per occurrence.
Work performed only through licensed general contractors who oversee all phases of construction.

Oregon Commercial Developer ($25,000) Bond FAQs:

My bond says $20,000. Is that still good?

No. House Bill 2922 raised the commercial developer bond to $25,000 effective January 1, 2024. Ask your surety for a new bond or an increase rider and make sure the CCB has it on file.

Can a commercial developer do some of the construction work?

No. The CCB endorsement chart says a commercial developer does not perform any construction work on the property and acts with licensed general contractors who have sole responsibility for overseeing construction. If you build, you need a general contractor endorsement.

Is the bond the only financial requirement?

No. ORS 701.084(5) also requires general liability insurance of at least $500,000. Both must be in place for the endorsement to issue.

How long is the license good for?

Under ORS 701.063 a CCB license is valid for two years from issuance unless revoked or suspended. Keep the bond in force for the full term and through each renewal.

What does the bond cost?

You pay a premium, not $25,000. The surety prices it after reviewing the owners' credit and business background, and you can see your quote before you buy.