Commercial General Contractor Level 2 ($25,000) Bond - Statewide in Oregon

Brief Summary

Commercial General Contractor Level 2 lets an Oregon contractor take on the same commercial work as Level 1 while posting a $25,000 bond instead of $80,000. The difference between the two levels is experience and insurance, not the size or type of project. Have the bond written on the current CCB commercial form in your exact registered business name and it goes straight into the license application.

Oregon requires a $25,000 surety bond for the Commercial General Contractor Level 2 endorsement under ORS 701.084. It was $20,000 until House Bill 2922 raised it on January 1, 2024. The bond runs to the State of Oregon through the Construction Contractors Board, is filed on the CCB Commercial Surety Bond form with the license application, and stays in force until claims use it up or the surety cancels on 30 days' written notice.

We can help with all Oregon bonds!

How to Apply for a Commercial General Contractor Level 2 ($25,000) Bond:

• Confirm the business qualifies for Level 2: key employees with a combined total of at least four years of experience.
• Name a responsible managing individual and complete at least 16 hours of approved pre-license training and the Oregon exam.
• Have the business name exactly as registered with the Oregon Corporation Division.
• Provide owner details for the surety's credit review and approve the quoted premium.
• Receive the signed $25,000 CCB Commercial Surety Bond with the power of attorney attached.
• Submit the bond with the license application so it reaches the CCB within 60 days of the bond date, along with proof of $1 million aggregate liability insurance.

Detailed Information About the Oregon Commercial General Contractor Level 2 ($25,000) Bond:

Level 2 versus Level 1

Both commercial general levels allow the same work: an unlimited number of unrelated building trades on any small or large commercial structure. What separates them is what the business has to show the Construction Contractors Board.

Level 1 calls for key employees with a combined eight years of experience, $2 million in aggregate liability insurance and an $80,000 bond. Level 2 calls for key employees with a combined four years of experience, $1 million in aggregate liability insurance and a $25,000 bond. Both require a responsible managing individual.

The 2024 increase

House Bill 2922, passed by the 2023 Legislature, raised every CCB endorsement bond by $5,000 effective January 1, 2024. Commercial General Level 2 went from $20,000 to $25,000. Many sureties filed blanket riders that covered the increase automatically. Where a surety did not, the contractor had to get an individual increase rider to stay in compliance. If your bond paperwork still reads $20,000, ask your surety which applies to you.

What the bond pays

The bond is not insurance for the contractor. Under ORS 701.068 it pays amounts the board determines on complaints against commercial contractors under ORS 701.146, and the surety's total liability for all complaints cannot exceed the $25,000 penal sum. If the surety pays out, the board can require a new bond. If what a contractor owes exceeds the bond, the license is suspended until it is paid, and reinstatement can be conditioned on a bond of up to five times the normal amount.

For large commercial projects, a claimant must first go to court or binding arbitration before filing with the CCB.

Filing details

The obligee on the CCB Commercial Surety Bond form (Rev 08/2023) is the State of Oregon through the Construction Contractors Board. The surety's attorney-in-fact signs it and a power of attorney must be attached. The bond has to reach the CCB within 60 days of the date shown on it, and the principal name must match Oregon Corporation Division records exactly. A contractor who also holds a residential endorsement files a separate residential bond. The license runs two years under ORS 701.063.

Eligibility and Requirements for a Oregon Commercial General Contractor Level 2 ($25,000) Bond:

• A corporate surety authorized to do business in Oregon.
• State of Oregon, through the Construction Contractors Board, as obligee.
• Penal sum of $25,000 entered in both places the form asks for it.
• A separate residential bond if the business also holds a residential endorsement.
• Workers' compensation coverage if the business has employees.
• CCB license application fee of $400 for applications beginning July 1, 2025, and a $400 renewal fee every two years.

Oregon Commercial General Contractor Level 2 ($25,000) Bond FAQs:

Official and Additional Resources for the Oregon Commercial General Contractor Level 2 ($25,000) Bond: