Navigating Oregon's contractor licensing landscape requires a clear understanding of the Construction Contractors Board (CCB) regulations, particularly the unique Responsible Managing Individual (RMI) requirement. This guide will walk you through the license types, requirements, and application steps to become a licensed contractor in Oregon.
Do you need a contractor license in Oregon?
Yes, a contractor license issued by the Oregon Construction Contractors Board (CCB) is required to perform most construction, remodeling, repair, or improvement activities for compensation. This applies to anyone who advertises, offers, or performs construction work on someone else's property.
Types of Oregon Contractor Licenses
The Oregon CCB issues several types of licenses, known as endorsements, which define the scope of work a contractor is legally allowed to perform.
Residential Contractor
This endorsement allows a contractor to work on residential and small commercial structures. The scope of work is defined in Oregon Administrative Rules Chapter 812.
Commercial Contractor
This endorsement allows a contractor to work on large or small commercial structures as well as residential structures. The specific project value limits and classifications are set by the CCB.
Residential Limited Contractor
This endorsement is limited to residential projects on a small scale: a residential limited contractor may not exceed $40,000 in gross annual volume or enter into any single contract over $5,000 (ORS 701.038).
Residential or Commercial Developer
This endorsement is for contractors who own and develop property for the purpose of selling it. They may contract with licensed general or specialty contractors to perform the work.
Commercial Contractor Key Employee
This endorsement is for an individual who is an employee of a commercial contractor and meets the requirements to act as a Responsible Managing Individual (RMI) for that business.
Oregon Contractor License Requirements (General)
To obtain a contractor license in Oregon, all applicants must meet several key requirements established by the CCB.
Responsible Managing Individual (RMI) Requirements
Each licensed business must have a designated Responsible Managing Individual (RMI) who has completed required training and passed a state-approved test. The training and testing requirements are established under Oregon Revised Statute (ORS) 701.122, and the RMI is responsible for the construction operations of the business. Residential endorsements have no minimum years-of-experience requirement — the training and exam are the qualification step. Commercial endorsements do carry an experience requirement: a commercial general contractor level 1 must have an RMI (or key employees) with a combined total of at least eight years of experience, and level 2 at least four years (ORS 701.084).
Business Registration & Legal Structure
Your business must be registered with the Oregon Secretary of State if it is a corporation, LLC, or uses an assumed business name. Sole proprietors operating under their legal name do not need to register separately with the Secretary of State but must provide their Social Security Number to the CCB.
Insurance Requirements
Licensed contractors are required to maintain general liability insurance, with minimums set by endorsement (ORS 701.081 and 701.084): not less than $500,000 for a residential general contractor, $2 million for a commercial general contractor level 1, and $1 million for a commercial general contractor level 2.
Bond Requirements
Applicants must secure a surety bond under ORS 701.068. The amount depends on the endorsement: $25,000 for a residential general contractor, $80,000 for a commercial general contractor level 1, and $25,000 for a commercial general contractor level 2 (ORS 701.081 and 701.084).
Steps to Get Your Oregon Contractor License
Follow these steps to apply for your contractor license with the Oregon CCB.
- Understand License Types and Scope: Determine which license endorsement (e.g., Residential, Commercial, Residential Limited) is right for your business based on the type and scale of work you plan to perform.
- Fulfill Responsible Managing Individual (RMI) Requirements: Designate an RMI for your business. This person must complete the required pre-license training from an approved education provider and pass the state contractor exam.
- Register Your Business Entity: If you plan to operate as an LLC, corporation, or under an assumed business name, register your business with the Oregon Secretary of State's office.
- Obtain Required Insurance: Secure a general liability insurance policy that meets the minimum coverage amount required for your specific license endorsement. You will need to provide proof of insurance with your application.
- Secure the Mandatory Contractor Bond: Purchase a surety bond for the amount required for your license endorsement. The original bond must be submitted with your application.
- Complete the CCB License Application: Fill out the appropriate contractor license application form from the CCB, ensuring all information is accurate and complete.
- Pay All Applicable Application Fees: Include payment for the required license fee with your application.
- Submit Your Application to the CCB: Mail or hand-deliver your completed application, proof of insurance, original bond, and fee payment to the Oregon Construction Contractors Board.
- Maintain Compliance Post-Licensure: Once licensed, you must keep your insurance and bond active, adhere to contract requirements, and complete any required continuing education to maintain your license.
Oregon Contractor License Exam
All applicants must have a designated Responsible Managing Individual (RMI) who passes a state-approved exam.
Exam Content and Format
The exam covers Oregon construction laws, regulations, and business practices based on the Oregon Contractor's Reference Manual. The specific format, number of questions, and time allotted are determined by the state's testing service.
Approved Exam Providers
The exam is administered by a testing service approved by the CCB. Confirm the current approved provider and scheduling process on the CCB website.
Exam Fees and Retake Policy
Exam fees are paid directly to the testing provider. The specific fee and the policy for retaking the exam are set by the provider; confirm these details when scheduling your test.
Preparing for the Exam
The CCB requires pre-license training from an approved provider, which is designed to help you prepare for the exam. The Oregon Contractor's Reference Manual is the primary study material for the test.
Oregon Contractor License Fees
The primary fee for a contractor license is for a two-year term.
Initial Application and License Fees
The fee for a two-year contractor license is $400. Per the CCB, this fee increase applies to new licenses issued on or after July 1, 2025.
Renewal Fees
The renewal fee for a two-year contractor license is $400. This fee increase applies to licenses renewing on or after July 1, 2024.
Other Potential Fees
Additional costs associated with licensing include fees for pre-license training, the state exam, business registration, insurance premiums, and the cost of your surety bond.
Insurance and Bonding for Oregon Contractors
Maintaining active insurance and bonding is a condition of licensure in Oregon.
General Liability Insurance Minimums
All licensed contractors must carry general liability insurance. The minimums are set by statute per endorsement: $500,000 for residential general contractors, $2 million for commercial general contractors level 1, and $1 million for commercial general contractors level 2 (ORS 701.081, 701.084).
Workers' Compensation Insurance
Contractors with employees must provide workers' compensation insurance through a carrier authorized to sell in Oregon. Some business owners may be exempt; consult the CCB's guidelines to determine if you are required to have this coverage.
Contractor Bond Requirements
Contractors must file a surety bond with the CCB. The required amount is determined by the license endorsement (ORS 701.068, 701.081, 701.084): a Residential General Contractor must secure a $25,000 bond, a Commercial General Contractor Level 1 an $80,000 bond, and a Commercial General Contractor Level 2 a $25,000 bond.
Renewing Your Oregon Contractor License
Oregon contractor licenses must be renewed to remain active.
Renewal Cycle Length
Contractor licenses in Oregon are issued for a two-year term, as referenced by the two-year license fee structure in ORS 701.063.
Continuing Education Requirements
Residential contractors and key employees are required to complete continuing education for renewal. The specific number of required hours and approved course topics are set by the board per ORS 701.082, ORS 701.086, and ORS 701.265. Confirm the current CE requirements for your license type with the CCB.
Renewal Process and Deadlines
The CCB will send a renewal notice before your license expires. You must submit your renewal application, fee, and proof of completed continuing education before the expiration date to avoid a lapse.
Consequences of Lapsed or Expired Licenses
Working with an expired or inactive license is illegal and can lead to significant penalties. You cannot legally advertise, bid on, or perform construction work in Oregon until your license is reinstated.
Oregon Contractor License Reciprocity
The sources reviewed do not specify any formal reciprocity agreements with other states for general contractor licensing. Out-of-state contractors must meet all of Oregon's licensing requirements, including the RMI training and testing, to obtain a CCB license.
How Long Does it Take to Get a Contractor License in Oregon?
The time it takes to get a contractor license in Oregon depends on several factors, including the time required to complete the RMI training, pass the exam, and secure your bond and insurance. Current application processing and exam scheduling timelines vary; confirm the latest information with the CCB and its approved testing provider.
Oregon Construction Contractors Board (CCB) Contact Information
The Oregon Construction Contractors Board (CCB) is the official licensing authority. For the most current forms, fee schedules, and regulations, please contact them directly.
- Website: https://www.oregon.gov/ccb/