Construction Flagging Contractor ($25,000) Bond - Statewide in Oregon

Brief Summary

If you already hold an Oregon residential general, commercial general or commercial specialty license with the right endorsement, you do not need this license or this bond to put flaggers on a road. Everyone else who supplies flaggers needs both. The $25,000 bond is filed with the Construction Contractors Board on the CCB's own flagger bond form, and there is no exam or class standing in the way.

Oregon requires a construction flagging contractor license, a $25,000 surety bond and at least $500,000 in general liability insurance from any business that employs, contracts with or leases individuals to direct traffic around roadway construction. The rule is ORS 701.470. Holders of a valid residential general contractor, commercial general contractor level 1 or 2, or commercial specialty contractor level 1 or 2 license and endorsement are exempt from the flagging license.

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How to Apply for a Construction Flagging Contractor ($25,000) Bond:

• Check first whether a residential general, commercial general level 1 or 2, or commercial specialty level 1 or 2 license and endorsement already covers you.
• Request the construction flagging contractor application from the CCB.
• Obtain a $25,000 surety bond on the CCB Construction Flagging Contractor Surety Bond form.
• Obtain general liability insurance of at least $500,000.
• Submit the application, bond and insurance to the Construction Contractors Board.
• Renew the license every two years and keep the bond and insurance continuously in force.

Detailed Information About the Oregon Construction Flagging Contractor ($25,000) Bond:

Who needs the flagging license

ORS 701.470 defines a construction flagging contractor as a person who employs, contracts with, or obtains through a worker leasing company one or more individuals to act as construction flaggers. A flagger is someone paid to direct or control motor vehicle traffic on a public roadway so traffic and construction activity do not conflict. Flaggers working for the federal government, a public body or a business regulated by the Public Utility Commission fall outside that definition.

The exemption most people miss

You do not need this license if you already hold a valid license and endorsement as a residential general contractor, commercial general contractor level 1 or 2, or commercial specialty contractor level 1 or 2. The flagging license exists for businesses that supply flaggers without holding one of those licenses.

What the application takes

Under ORS 701.470(4) the applicant submits an application, obtains a $25,000 surety bond under ORS 701.068, and carries general liability insurance of not less than $500,000. The bond is a flat figure. There are no tiers.

The license covers flagging only. It does not authorize any other work that needs a CCB license. The statute also bars the board from imposing training, continuing education or a business practices test on a flagging contractor or its responsible managing individual.

What the bond does

The CCB flagger bond form names the State of Oregon as obligee and states that the bond exists to pay determination orders of the Construction Contractors Board under ORS Chapter 701. It stays in effect until depleted by claims, and the surety must give 30 days written notice to the principal and the board to cancel. CCB licenses run two years under ORS 701.063.

Eligibility and Requirements for a Oregon Construction Flagging Contractor ($25,000) Bond:

• Bond amount of $25,000, set by ORS 701.470(4)(b).
• State of Oregon as obligee on the CCB flagger bond form, Rev 09/2023.
• Business name on the bond matching the CCB application exactly.
• Separate general liability policy of not less than $500,000.
• No training, continuing education or knowledge test, under ORS 701.470(6).

Oregon Construction Flagging Contractor ($25,000) Bond FAQs:

Official and Additional Resources for the Oregon Construction Flagging Contractor ($25,000) Bond: