ORS 701: Oregon Contractor License, Endorsements & Bonds

To work as a contractor in Oregon, you need a current license from the Construction Contractors Board (CCB) with an endorsement matching the work you do, pre-license training and a passing exam on Oregon construction business law, a surety bond, and general liability insurance in amounts set by your endorsement. Oregon contractor license requirements are laid out in ORS Chapter 701, which also authorizes civil penalties up to $5,000 per offense for anyone who builds, repairs, or improves real property for compensation without one.¹

Who Has to Be Licensed

ORS 701.021 requires a CCB license with the appropriate endorsement for anyone who undertakes, offers to undertake, or submits a bid to do work as a contractor.² The definition in ORS 701.005 sweeps in anyone who, for compensation or with intent to sell, arranges or performs construction, alteration, repair, improvement, or demolition of a building, road, excavation, or other improvement attached to real property.³ Roofers, framers, siding installers, electricians, and virtually anyone whose work physically changes a structure or site falls inside that definition.

Who Doesn’t

ORS 701.010 lists the exemptions. The ones that come up most often:⁴

Casual or inconsequential work where total labor and materials come to less than $1,000. Advertising as a contractor ends this exemption immediately.
Homeowners working on property they own, as long as they are not building or remodeling with intent to sell.
Suppliers who furnish materials or finished products but do not fabricate or install them.
Employees of a licensed contractor, who do not need a separate license.
Work on federal reservations or government sites.
Architects, professional engineers, and landscape contracting businesses licensed under ORS 671.510 to 671.760 operating within their own licensing scope.

Owners hiring licensed contractors for work on up to three existing residential structures they own in the same calendar year are also exempt, but only if the work does not require a building permit — unless a residential general contractor oversees it.⁴ Note the boundary: the homeowner exemption covers your own property, not a flip.

Picking the Right Endorsement

A license by itself is not enough. Every contractor must also hold an endorsement matching the type of work and the type of structure. Endorsements split first into residential and commercial, then by scope and business size within each.

Residential Endorsements

Residential structures include site-built homes, apartment complexes and condos four stories or less above grade, modular homes, manufactured dwellings, and individual dwelling units in larger buildings where the property interest in the unit is separate from the building.⁵ The residential endorsements are:

Residential General Contractor (RGC): unlimited trades on residential or small commercial structures.
Residential Specialty Contractor (RSC): one or two unrelated building trades. If three or more trades are involved, the entire contract price cannot exceed $2,500.
Residential Limited Contractor (RLC): unlimited trades, but expected gross construction sales must stay below $40,000 per year, with no single contract above $5,000 per job site per year.
Residential Developer (RD): owns the property and arranges construction for sale using licensed general contractors, and performs no construction directly.

Restricted endorsements also exist for home services (warranty) contractors, residential locksmiths, and home inspectors. Each restricted endorsement limits the holder to that activity only.⁵

Commercial Endorsements

Commercial endorsements come in two levels. Level 1 covers large commercial structures and carries significantly higher bond and insurance requirements. Level 2 covers small commercial structures with lower thresholds. Both offer a general (unlimited trades) and a specialty (limited trades) designation, mirroring the residential split.

Training, Testing, and Application

ORS 701.122 directs the CCB to impose training requirements. Applicants must complete pre-license training and pass an exam on Oregon construction business law and practices before they can be licensed.¹ The specific number of training hours is set by CCB administrative rule rather than by statute.

The application under ORS 701.046 asks for the endorsement being sought, any outstanding construction debts from the preceding five years, Social Security numbers for responsible individuals, and account numbers for workers’ compensation insurance, unemployment insurance, and state tax withholding where applicable.⁶ The initial application fee is $400, and the license renews every two years for another $400.⁷

Bond and Insurance Minimums

Every licensed contractor must carry a surety bond and general liability insurance. The bond covers money owed to property owners, employees, subcontractors, and suppliers. The insurance covers property damage and bodily injury from the contractor’s work.⁸ The amounts vary by endorsement, and getting them wrong is one of the more common compliance failures.

Residential Minimums

ORS 701.081 sets these floors:⁹

Residential General Contractor: $25,000 bond, $500,000 liability insurance.
Residential Specialty Contractor: $20,000 bond, $300,000 liability insurance.
Residential Limited Contractor: $15,000 bond, $100,000 liability insurance.
Residential Developer: $25,000 bond, $500,000 liability insurance.

Commercial Minimums

Commercial figures under ORS 701.084 are higher, especially at Level 1:¹⁰

Commercial General Contractor Level 1: $80,000 bond, $2,000,000 liability insurance.
Commercial Specialty Contractor Level 1: $55,000 bond, $1,000,000 liability insurance.
Commercial General Contractor Level 2: $25,000 bond, $1,000,000 liability insurance.
Commercial Specialty Contractor Level 2: $25,000 bond, $500,000 liability insurance.

Workers’ Compensation

Any contractor with employees must also carry workers’ compensation insurance. ORS 701.035 specifically requires commercial contractors in certain exempt classes to procure and maintain that coverage.¹¹ Letting any required policy lapse can result in immediate license suspension.

Lead-Based Paint Certification

Contractors who renovate housing built before 1978 or child-occupied facilities need a separate license on top of the standard CCB endorsement. ORS 701.510 prohibits lead-based paint renovation in Oregon without a certified lead-based paint renovation contractor license from the CCB.¹² Getting it requires completing an accredited training program through an Oregon Health Authority-approved provider, and the license renews annually.¹³

The rule catches more work than it may seem. Any renovation that disturbs painted surfaces in a qualifying structure triggers the requirement, not just projects aimed at paint removal.

Contract Requirements Once You’re Licensed

Oregon law requires a written contract for any residential construction, improvement, or repair project where the total price exceeds $2,000. If a project starts below that threshold and the price climbs above it, the contractor must deliver a written contract to the owner within five days of knowing or reasonably expecting the total will exceed $2,000. Skipping the written contract does not void the agreement, but it exposes the contractor to administrative penalties and weakens their position in any dispute.¹⁴

The contract must include the contractor’s legal name, CCB license number, business address, phone number, a description of the work, and the total price. Several standardized notices must also be delivered before signing:

The Information Notice to Owner About Construction Liens, explaining that unpaid subcontractors, suppliers, and employees may lien the property.¹⁵
The Consumer Protection Notice required by ORS 701.330 at the time of contracting on a residential structure.
A mediation and arbitration notice covering the owner’s dispute resolution rights.

Keep proof of the signed notices for at least two years.¹⁵

Under ORS 701.310, a property owner can cancel an initial written contract for residential construction any time before midnight at the end of the next business day. The cancellation must be in writing but can go by fax, email, or regular mail. The right does not apply if both parties agreed work would begin before the cancellation period expired, the contractor has substantially started the work, or the parties are modifying an existing contract after the original cancellation period has passed.¹⁶

Penalties for Working Without a License

ORS 701.992 authorizes a civil penalty of up to $5,000 per offense for any violation of Chapter 701, including unlicensed work.¹⁷ Multiple days of unlicensed work can be treated as multiple offenses, so totals climb quickly.

The board can also stop the job. If the contractor was never licensed when work began, the CCB can issue an immediate stop-work order. If the contractor was licensed but let the license lapse, the board must give 10 days’ notice before halting work.¹ Using another contractor’s CCB license number without authorization, or using any license number with intent to deceive the public, is classified as a Class C felony.

There is one more cost, and it lands on the customer as much as the contractor. A property owner who hires an unlicensed contractor cannot use the CCB’s dispute resolution process against someone who was never licensed, which cuts off access to the contractor’s surety bond. For most homeowners, that bond is the practical source of recovery when work goes wrong.

1
Oregon State Legislature. Oregon Code 701 – Construction Contractors and Contracts
2
Oregon Public Law. Oregon Revised Statutes 701.021 – License Requirement; Endorsements
3
Oregon Public Law. Oregon Revised Statutes 701.005 – Definitions
4
Oregon Public Law. Oregon Revised Statutes 701.010 – Exemptions From Licensure; Rules
5
Oregon Construction Contractors Board. CCB Endorsement Chart
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Oregon Public Law. Oregon Revised Statutes 701.046 – License Application
7
Oregon Construction Contractors Board. CCB License
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Oregon Public Law. Oregon Code 701.068 – Bonding Requirements; Action Against Surety; Rules
9
Oregon Public Law. Oregon Revised Statutes 701.081 – Residential Contractors; Bond; Insurance
10
Oregon Public Law. Oregon Revised Statutes 701.084 – Commercial Contractors; Bond
11
Oregon State Legislature. Oregon Code 701.035 – Licensure of Independent Contractors
12
Oregon State Legislature. Oregon Revised Statutes 701.510
13
Oregon Business Xpress. Lead Based Paint Renovation Contractors License (CCB)
14
Oregon State Legislature. Oregon Code 701.305 – Requirement for Written Contract With Residential Property Owner; Standard Contractual Terms; Rules
15
Oregon Construction Contractors Board. Information Notice to Owner About Construction Liens
16
Oregon Public Law. Oregon Revised Statutes 701.310 – Cancellation of Contract
17
Oregon State Legislature. Oregon Revised Statutes 701.992