Surety Bond Encyclopedia

Residential Specialty Contractor ($20,000) Bond - Statewide in Oregon

Brief Summary

The Residential Specialty endorsement fits a contractor who does one or two trades, and its $20,000 bond and $300,000 insurance minimum reflect that. The catch is the trade limit. Know where your work falls before you apply, buy the bond at the right amount, and the filing itself takes very little effort.

Oregon's Residential Specialty Contractor endorsement requires a $20,000 surety bond filed with the Construction Contractors Board under ORS 701.068 and 701.081, plus $300,000 per occurrence in liability insurance. The bond was $15,000 until January 1, 2024. The endorsement covers one or two unrelated building trades on residential or small commercial structures.

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How to Apply for a Residential Specialty Contractor ($20,000) Bond:

Check that your work fits one or two unrelated building trades, or the $2,500 single-property exception.
Finish at least 16 hours of approved pre-license training and pass the Oregon exam.
Give the surety the business name exactly as registered with the Corporation Division.
Complete the bond application and pay the premium.
Receive the $20,000 CCB Residential Surety Bond with the power of attorney attached.
Turn it in with your license application within 60 days of the bond date.

Detailed Information About the Oregon Residential Specialty Contractor ($20,000) Bond:

The trade limit decides your endorsement

A Residential Specialty Contractor may perform one or two unrelated building trades on residential or small commercial structures. The trades can change from job to job. Three or more unrelated trades on a single property are allowed only when the contract is $2,500 or less. Regularly going past that puts the work in Residential General Contractor territory, with a $25,000 bond and $500,000 per occurrence in insurance.

At the other end, the Residential Limited endorsement carries a $15,000 bond and $100,000 in insurance but only fits businesses with gross annual sales under $40,000 and contracts of $5,000 or less.

The 2024 change

HB 2922 raised this bond from $15,000 to $20,000 starting January 1, 2024, part of a $5,000 increase across every CCB endorsement. Bonds issued before that date were brought up either by a blanket rider the surety filed or by an individual increase rider the contractor requested.

What the surety promises

The residential bond form exists for the exclusive purpose of ensuring payment of CCB determination orders. It takes effect when you meet all licensing requirements and remains continuously in effect until claims paid deplete it or the surety cancels with 30 days' written notice to you and the CCB. If the surety pays a claim, the board can require you to obtain a new bond.

Eligibility and Requirements for a Oregon Residential Specialty Contractor ($20,000) Bond:

$300,000 per occurrence liability insurance.
A corporate surety authorized to do business in Oregon.
State of Oregon Construction Contractors Board as obligee.
Full middle names on the bond for sole proprietors, partnerships, LLPs and joint ventures.
Workers' compensation if you have employees.
A two-year license term under ORS 701.063.

Oregon Residential Specialty Contractor ($20,000) Bond FAQs:

Can my two trades change from one job to the next?

Yes. The CCB endorsement chart says the building trades may change from job to job. The limit is one or two unrelated trades on a given job, with an exception for three or more on a single property when the contract is $2,500 or less.

When should I move up to Residential General Contractor?

When you regularly perform or arrange three or more unrelated trades on jobs over $2,500. That endorsement needs a $25,000 bond and $500,000 per occurrence in insurance, and it also lets you do residential specialty work.

My bond was written for $15,000. Is it still valid?

The required amount has been $20,000 since January 1, 2024. Many sureties raised existing bonds with a blanket rider. If yours did not, you needed an individual increase rider from the surety to stay in compliance.

Can I send the bond to the CCB myself after I apply?

New applicants submit the bond together with the license application. The bond must reach the CCB within 60 days of the date on it to be valid for licensing.