The Oregon Construction Contractors Board has changed a requirement for new and renewing licensees in which they must choose an endorsement for their license rather than a licensing category. The endorsements are broken down into either Residential Endorsements or Commercial Endorsements.
The reason for this change is to make it easier for contractors because they would be able to include a range of disciplines under a single license. With over 45,000 licensed contractors in Oregon, this licensing structure also helps the Construction Contractors Board (CCB) to more effectively regulate licensees.
Because of this change, the CCB is also requiring licensees to submit their contractor license bonds on a new bond form and for the amount specified according to the endorsement they choose. For those with a Dual Endorsement, two separate bonds will be required â€“ one for residential and another for commercial.
The change was made effective July 1, 2008 for all new licensees. For existing licensees, it will come up when your license renews. If you are unsure of the bond requirement for your license endorsement, refer to the CCB Licensing Endorsement Chart. You can also refer to the renewal notice packet the CCB sends you â€“ they are providing detailed explanations about the endorsements and the new bond requirements. If you believe your license is up for renewal and have not received a renewal notice, you should contact the CCB immediately.
Once you receive your renewal notice from the CCB, be sure to contact your bond agency to have your bond issued on the new bond form. You will need to let them know which endorsement you have chosen â€“ Residential or Commercial, and the bond amount now being required. If you have chosen a Dual Endorsement, let your agent know that you will need both the Residential Contractor Bond and Commercial Contractor Bond.
They should already be familiar with this new bond requirement and will be able to ease you through the transition from your old bond to the new one.
If there has not been a significant increase in the bond amount, most sureties will be able to issue the new bond without additional underwriting. In the case that additional underwriting is required, be prepared to provide updated information, especially if the bond amount has increased significantly. These updates could include personal financial statements and/or business financial statements (fiscal year-end and year-to-date). In either case, the process should be fairly easy â€“ with the assistance of the CCBâ€™s Customer Service Unit and your bond agency.