The Complete Guide to CCB Surety Bonds for Oregon Contractors

Why CCB Surety Bonds are Important for Oregon Contractors

A CCB Surety Bond is not just a formality—it’s a vital protection for both contractors and their clients in Oregon. These bonds are required by the Oregon Construction Contractors Board (CCB) to ensure that contractors adhere to state regulations and fulfill their contractual obligations.

Here’s a quick breakdown of the essentials:

  • Purpose: Guarantees contractor compliance with state laws and contractual obligations.
  • Importance: Protects third parties from financial loss due to contractor’s non-compliance.

By mandating these bonds, the CCB aims to create a trustworthy environment within the construction industry. This safeguard ensures that if a contractor fails to meet the agreed-upon terms, the bond will provide financial compensation to cover damages. It acts as a financial safety net, giving clients peace of mind and holding contractors accountable for their work.

Importance And Purpose Of Ccb Surety Bonds In Oregon - Ccb Surety Bond Infographic Comparison-2-Items-Casual

Understanding CCB Surety Bonds


A CCB surety bond is a financial guarantee required by the Oregon Construction Contractors Board (CCB) to ensure that contractors comply with state laws and regulations. If a contractor fails to meet their obligations, the bond compensates affected parties for any resulting damages.

Three-Party Agreement

A CCB surety bond involves three key parties:

  1. Principal: The contractor who needs the bond.
  2. Obligee: The Oregon Construction Contractors Board (CCB), which requires the bond to protect the public.
  3. Surety: The company that issues the bond, guaranteeing the contractor’s compliance.

Roles and Responsibilities

The Principal

The principal is the contractor who must obtain the bond to legally operate in Oregon. Their responsibility is to adhere to all relevant laws and complete their work as agreed.

The Obligee

The obligee is the CCB, which mandates the bond to protect consumers and ensure contractors fulfill their obligations. If a contractor fails to comply, the CCB can claim against the bond to cover damages.

The Surety

The surety is the company that provides the bond. They assess the contractor’s ability to meet their obligations before issuing the bond. If the contractor defaults, the surety compensates the obligee up to the bond’s value and then seeks reimbursement from the contractor.

Why It Matters

This three-party agreement ensures that:

  • Contractors are accountable: They must follow the law and fulfill their contracts.
  • Consumers are protected: They receive financial compensation if a contractor fails to meet obligations.
  • The industry remains trustworthy: Bonds help maintain high standards and trust within the construction sector.

For instance, if a residential general contractor (principal) fails to complete a project according to state laws, the homeowner can file a claim with the CCB (obligee). The surety company then compensates the homeowner for the damages, ensuring the homeowner is not left financially burdened.

Next, we will explore the various types of CCB surety bonds and their specific applications within the construction industry.

Types of CCB Surety Bonds

Performance Bond

A performance bond ensures that a contractor completes a project according to the terms of the contract. If the contractor fails to meet these obligations, the surety company steps in to either complete the project or compensate the project owner. This bond is crucial for protecting project owners from unfinished work or subpar performance.

Payment Bond

A payment bond guarantees that subcontractors, suppliers, and laborers get paid for their work and materials. This bond protects these parties from non-payment by the contractor, ensuring they receive the compensation they deserve. If the contractor fails to pay, the surety company covers the costs.

Bid Bond

A bid bond ensures that contractors submit serious bids and commit to their contractual obligations if their bid is accepted. This bond provides financial protection to the project owner if a bidder fails to sign the contract or provide the required performance and payment bonds. Essentially, it weeds out non-serious bids and ensures that only qualified contractors are considered.

Maintenance Bond

Also known as a warranty bond, a maintenance bond guarantees that any defects in workmanship or materials found in the original construction will be repaired during the warranty period. This bond provides peace of mind to project owners, assuring them that any issues will be addressed promptly and at no additional cost.

These CCB surety bonds play a vital role in the construction industry, providing financial security and ensuring project completion and quality. Next, we will delve into the requirements for Oregon contractors to obtain these bonds.

Requirements for Oregon Contractors

To work as a contractor in Oregon, you must meet specific requirements set by the Oregon Construction Contractors Board (CCB). Let’s break down these requirements into four key areas: licensing, CCB licensing, bond amounts, and insurance requirements.


Before you can start working as a contractor in Oregon, you need to secure the appropriate licenses. This involves completing pre-license training, passing a licensing exam, and submitting the necessary paperwork. The CCB mandates a 16-hour training course followed by an exam that tests your knowledge of construction practices, safety regulations, and business law.

CCB Licensing

Once you’ve passed the exam, you’ll need to apply for your CCB license. This involves several steps:

  1. Determine Your Endorsement Type: Decide if you need a residential, commercial, or dual endorsement based on the type of work you plan to do.

  2. File Business Registration: Register your business entity (corporation, LLC, or assumed business name) with the Oregon Secretary of State.

  3. Submit Application: Complete the CCB license application and submit it along with the required documents and fees.

Bond Amounts

The amount of the CCB surety bond you need depends on the type of contractor license you are applying for. Here’s a quick overview:

Residential Contractor License Bonds:
– Residential specialty contractor: $15,000
– Residential general contractor: $20,000
– Residential locksmith services contractor: $10,000
– Residential limited contractor: $10,000
– Residential developer: $20,000
– Home services contractor: $10,000
– Home performance score contractor: $10,000
– Home inspector services contractor: $10,000

Commercial Contractor License Bonds:
– Commercial General Contractor Level 1: $75,000
– Commercial General Contractor Level 2: $20,000
– Commercial Specialty Contractor Level 1: $50,000
– Commercial Specialty Contractor Level 2: $20,000
– Commercial Developer: $20,000

These bond amounts are set by the CCB and are designed to provide financial protection in case of unpaid orders or judgments against a contractor.

Insurance Requirements

In addition to the bond, contractors must also carry general liability insurance. The amount varies based on the type of work and the level of risk involved. You’ll need to submit proof of this insurance when applying for your CCB license.

If you have employees, you are also required to purchase worker’s compensation insurance. This ensures that your employees are covered in case of workplace injuries or illnesses.

By meeting these requirements, you help ensure that your business complies with Oregon state laws and regulations, providing peace of mind to your clients and protecting your financial interests.

Next, we will explore the benefits of obtaining a CCB surety bond.

Benefits of CCB Surety Bonds

CCB surety bonds offer numerous benefits for contractors in Oregon. These benefits not only help contractors but also protect clients and the public. Let’s explore some key advantages:

Economic Value

Surety bonds provide significant economic value by ensuring that projects are completed on time and within budget. This protection is crucial for clients and taxpayers, as it minimizes financial risks associated with contractor non-performance.

For instance, if a contractor fails to complete a project, the surety bond can cover the costs to finish the work. This guarantees that public funds are safeguarded and projects are delivered as promised.


The prequalification process for obtaining a CCB surety bond is rigorous. Surety companies evaluate a contractor’s financial stability, experience, and capacity to fulfill contractual obligations. This vetting process helps ensure that only qualified contractors are licensed.

Surety underwriters examine several factors, including:
Credit Score: Reflects the contractor’s financial reliability.
Financial Statements: Show the business’s financial health.
Years of Experience: Indicates expertise in the industry.
Moral Character: Assessed through prior claims history.

This thorough assessment helps clients feel confident in hiring contractors who are financially sound and experienced.

Project Performance

Surety bonds play a crucial role in enhancing project performance. They act as a safety net, ensuring that contractors complete their work according to the terms of the contract. This includes meeting deadlines, adhering to budget constraints, and maintaining quality standards.

In the event of a contractor’s failure to perform, the surety bond ensures that the project can continue without significant financial disruption. This reliability is essential for maintaining trust between contractors and clients.

Contractor Vetting

Surety bonds also serve as a tool for vetting contractors. By requiring bonds, the Oregon Construction Contractors Board (CCB) ensures that contractors meet specific standards before they can operate legally. This vetting process helps weed out unqualified or unreliable contractors.

For example, contractors must:
Submit a CCB surety bond in the required amount.
Provide proof of general liability insurance.
Complete pre-license training and pass an exam.

These requirements help maintain a high standard of professionalism and reliability in the construction industry, benefiting both contractors and clients.

Contractor Vetting - Ccb Surety Bond

By understanding the benefits of CCB surety bonds, contractors can better appreciate their value and importance. These bonds not only protect clients and the public but also enhance the credibility and reliability of contractors.

Next, we will look at how to obtain a CCB surety bond and the application process.

How to Obtain a CCB Surety Bond

Getting a CCB surety bond might seem complicated, but it’s actually quite straightforward. Here’s a step-by-step guide to help you through the process.

Application Process

  1. Determine the Bond Type and Amount
  2. Identify the specific type of bond you need (e.g., Residential General Contractor, Commercial General Contractor Level 1).
  3. Know the required bond amount based on your contractor type. For example, a Residential General Contractor needs a $20,000 bond.

  4. Choose a Surety Bond Provider

  5. Opt for a reputable provider like Surety Bonds Co. They specialize in providing surety bonds quickly and efficiently.

  6. Complete the Application

  7. Fill out the bond application form. This typically includes basic contact details, business information, and the type of bond required.

  8. Submit Financial Documentation

  9. Provide necessary financial documents, such as credit scores and financial statements. These help the surety company assess your financial stability.

  10. Receive a Quote

  11. Once your application is reviewed, you’ll get a bond quote. This quote is based on your creditworthiness and the bond amount required.

Surety Bonds Co: Your Go-To Provider

At Surety Bonds Co, we make the process simple and fast. Here’s what sets us apart:

  • Instant Online Quotes
  • With our online application, you can get an instant quote. No waiting for days or even hours. Just fill out the form, and you’ll see your quote almost immediately.

  • Immediate Approval

  • Once you accept the quote, we offer immediate approval. You can download and print your bond right away, saving you time and hassle.

Required Documentation

To ensure a smooth application process, have these documents ready:

  • Business License Copy
  • Proof of Financial Accountability
  • Secure Form Document

Instant Online Quotes

One of the standout features of Surety Bonds Co is our instant online quotes. Simply fill out the online application, and within minutes, you’ll receive a quote. This feature is designed to save you time and make the process as convenient as possible.

Steps to Finalize Your Bond

  1. Pay the Premium
  2. Once you receive and accept the quote, pay the bond premium. This is a percentage of the total bond amount.

  3. Receive the Bond

  4. After payment, the bond will be issued. You can download and print it immediately.

  5. File the Bond

  6. Submit the bond to the Oregon Construction Contractors Board (CCB) along with other required documents like your insurance certificate.

By following these steps, you can easily obtain a CCB surety bond and ensure you’re compliant with Oregon’s contractor requirements.

Next, let’s address some frequently asked questions about CCB surety bonds.

Frequently Asked Questions about CCB Surety Bonds

What is the purpose of a surety bond?

A surety bond is a three-party agreement designed to ensure that a contractor (the principal) fulfills their obligations to the state (the obligee) and any third parties, such as customers or suppliers. In Oregon, the CCB surety bond specifically guarantees that contractors comply with the Oregon Revised Statutes. If a contractor fails to meet these obligations, the bond provides financial protection, allowing affected parties to file a claim and recover damages.

Who needs a CCB in Oregon?

Any contractor working in Oregon must obtain a CCB surety bond as part of the licensing process mandated by the Oregon Construction Contractors Board (CCB). This includes various types of contractors, such as:

  • Residential General Contractors: $20,000 bond
  • Residential Specialty Contractors: $15,000 bond
  • Commercial General Contractors: $75,000 bond for Level 1, $20,000 bond for Level 2
  • Commercial Specialty Contractors: $50,000 bond for Level 1, $20,000 bond for Level 2

The bond amount varies depending on the type of contractor and the scope of work they perform.

What is the difference between a surety bond and a performance bond?

While both types of bonds provide financial protection, they serve different purposes:

  • Surety Bond: This is a broad term that includes various types of bonds, such as license bonds, bid bonds, and payment bonds. A CCB surety bond ensures that a contractor complies with state laws and regulations, providing general protection for the public.

  • Performance Bond: This is a specific type of surety bond that guarantees the contractor will complete a project according to the terms and conditions of the contract. If the contractor fails to do so, the bond compensates the project owner for any financial losses incurred.

In summary, while a surety bond covers general compliance and legal obligations, a performance bond focuses on the successful completion of a specific project.

Next, let’s dive deeper into the benefits of obtaining a CCB surety bond.


We hope this guide has made the concept of CCB surety bonds clearer and more accessible for you. At Surety Bonds Co, our mission is to simplify the surety bond process for contractors in Oregon and beyond.

Why Choose Surety Bonds Co?

  1. Competitive Rates and Flexible Terms: Thanks to our strong relationships with numerous sureties, we offer some of the lowest rates available. This means you save both time and money.

  2. Fast and Efficient Service: We understand that time is money. Most of our clients receive a free, no-obligation quote in just a few minutes. For many common bonds, we even offer instant purchase options without a credit check.

  3. Expertise and Support: Our team of surety bond experts is here to guide you through every step of the process. We’ll handle all the paperwork and, if needed, submit your bond to the relevant agency. If the agency doesn’t accept our forms, we offer a full money-back guarantee.

  4. Nationwide Coverage: We’re licensed to sell surety bonds in all 50 states. No matter where your business is located, we’re here to help.

Ready to Get Started?

Obtaining a CCB surety bond doesn’t have to be complicated. With Surety Bonds Co, you can be confident that you’re getting the best service and rates available.

Get your CCB surety bond quote today!

Thank you for trusting Surety Bonds Co. We look forward to helping you secure the surety bond you need to grow your business and comply with Oregon’s contractor requirements.

The Complete Guide to CCB Surety Bonds for Oregon Contractors

The Complete Guide to CCB Surety Bonds for Oregon Contractors

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