Surety Bond Encyclopedia

Residential Limited Contractor ($15,000) Bond - Statewide in Oregon

Brief Summary

The Residential Limited Contractor endorsement is Oregon's small-volume license, and its $15,000 bond is the lowest the CCB sets for a contractor who can work across trades. It fits a part-time builder or handyman business that stays under the caps. The bond is filed with the Construction Contractors Board application and paid for with a premium, not a $15,000 deposit.

ORS 701.081(3) requires an Oregon Residential Limited Contractor to file a $15,000 surety bond, carry at least $100,000 in general liability insurance, and have a responsible managing individual who meets ORS 701.091. OAR 812-003-0131(3) caps the business at $40,000 in annual gross sales and $5,000 per contract, and several agreements for one work site within a year count as one contract.

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How to Apply for a Residential Limited Contractor ($15,000) Bond:

Check that your expected yearly sales stay at or below $40,000 and every job at or below $5,000.
Identify the responsible managing individual who meets ORS 701.091.
Complete the bond application for the surety's review of the owners.
Receive the executed $15,000 bond on the CCB residential surety bond form.
Submit the bond with the license application so the license is not delayed.
Bind at least $100,000 of general liability insurance and pay the CCB license fee, listed at $400 for applications beginning July 1, 2025.

Detailed Information About the Oregon Residential Limited Contractor ($15,000) Bond:

The caps people trip over

OAR 812-003-0131(3) allows a Residential Limited Contractor to bid or perform work on residential or small commercial structures only while every one of these holds true.

1. Annual gross business sales do not exceed $40,000. 2. No contract price exceeds $5,000. 3. On time and materials work, the amount charged does not exceed $5,000. 4. The licensee consents to CCB inspection of its Oregon Department of Revenue tax records to check the $40,000 limit.

The rule also defines contract to include a series of agreements between the licensee and a person for work on any single work site within a one-year period. Splitting a $9,000 project into two $4,500 agreements with the same customer at the same address does not get around the cap.

What the endorsement allows

Within those limits the work is broad. The CCB endorsement chart says this contractor may supervise, arrange or perform any unlimited number of unrelated building trades, and describes the endorsement as one for part-time contractors, such as people who build as a hobby.

Requirements under ORS 701.081(3)

The statute sets three conditions. A $15,000 surety bond under ORS 701.068, general liability insurance of not less than $100,000, and a responsible managing individual who meets ORS 701.091. The bond is a flat figure, written by a corporate surety authorized in Oregon, and pays amounts the board determines on residential complaints under ORS 701.145. Its total liability stays at $15,000 however long it runs. The board can require up to five times that amount for reinstatement after a suspension or under conditions set by rule.

Eligibility and Requirements for a Oregon Residential Limited Contractor ($15,000) Bond:

$15,000 surety bond under ORS 701.081(3) from a corporate surety authorized in Oregon.
General liability insurance of not less than $100,000.
A responsible managing individual meeting ORS 701.091.
Annual gross business sales of $40,000 or less and no contract over $5,000.
Consent to CCB review of Oregon Department of Revenue tax records.

Oregon Residential Limited Contractor ($15,000) Bond FAQs:

Can I break a bigger job into smaller contracts?

Not for the same customer at the same site. OAR 812-003-0131(3)(e) treats a series of agreements with one person for work on a single work site within one year as one contract, and that contract cannot exceed $5,000.

Does the $5,000 cap apply to time and materials jobs?

Yes. OAR 812-003-0131(3)(c) says the amount charged on a time and materials contract may not exceed $5,000.

How does the CCB check my annual sales?

As a condition of the endorsement you consent to the board inspecting your Oregon Department of Revenue tax records to verify sales stayed at or under $40,000.

Am I limited to one trade?

No. The CCB endorsement chart says this endorsement can cover an unlimited number of unrelated building trades, as long as the dollar caps are met.

How is the premium set?

The surety prices the bond after reviewing the owners, chiefly credit and history. The $15,000 is the most the surety can pay on board determined claims, not the cost to you.