Navigating Oregon Construction Contractors Board Continuing Education and Licensing Requirements

The Oregon Construction Contractors Board (CCB) plays a crucial role in regulating the construction industry within the state. This article provides a comprehensive overview of the licensing and continuing education requirements mandated by the CCB, ensuring contractors operate professionally and ethically. It covers aspects of obtaining a license, maintaining it through continuing education, and understanding the necessary insurance and bonding requirements.

Initial Licensing Requirements

To operate as a construction contractor in Oregon, it's essential to meet specific prerequisites set by the CCB. These involve several steps, from pre-license training to securing the appropriate financial protections.

Pre-License Training and Examination

Complete the 16-hour pre-license training and take the exam: All prospective contractors must complete a 16-hour training course from a CCB-approved provider.
Select a Responsible Managing Individual (RMI) to complete the training and exam: The RMI is the individual within the company who manages or supervises construction activities and must pass the Oregon contractor exam.
About the Oregon exam: The exam is based on the Oregon version of the NASCLA Contractors Guide to Business, Law and Project Management (2nd edition). The manual may be highlighted, underlined and tabbed prior to the examination session. Handwritten notes may be made in the book. Do not write in the manual during the exam. There are 80 multiple choice questions; a passing score is 70 percent (56 correct answers).

Business Structure and Registration

Determine your endorsement type: Contractors must carry the proper endorsement for the type of structures they work on.
File your corporation, LLC, and/or assumed business name: Register your business with the Oregon Secretary of State, Corporation Division.

Financial and Legal Requirements

Submit a CCB Surety Bond, in the required amount(s): Secure a surety bond, with the amount varying based on the endorsement type.
Provide proof of General Liability Insurance, in the required amount: Obtain general liability insurance to protect against third-party claims of property damage or personal injury.
Obtain Workers Compensation Insurance, if you will be hiring employees: If you plan to hire employees, secure workers' compensation insurance.
Obtain other employer account numbers: Acquire necessary state and federal tax numbers.

Application Submission

A complete application includes:

Bond with Power of Attorney (Do not submit separately)
Insurance Certificate (Do not submit separately)
Certification & Signatures form
$400 fee for a two-year license

Additional documents might be required, such as:

Proof of passing the Oregon Contractor Exam, if applicable.
Disclosure of No Social Security, if applicable.
Organizational Structure Chart, if applicable.
Certification & Signatures

Maintaining Your License: Continuing Education

Once licensed, Oregon commercial contractors must complete continuing education to maintain their licenses.

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Continuing Education Hours

Oregon Commercial Contractors are required to complete at least 16 hours of continuing education every two years. The license expires every 2 years, based on the original issue date. Contractors licensed for both commercial and residential work are subject only to the commercial continuing education requirements.

Course Content and Delivery

The continuing education is designed to improve your knowledge of the industry by taking you through the resources and providing practice questions. Courses are available online in an easy to use self-paced format, fully narrated, and are accessible from almost any device, any time.

Benefits of Continuing Education

RocketCert education is written by industry experts. The training is available 24/7, and you can start and stop as needed. With mobile ready courses, you can take from nearly any device at any location. After completing the continuing education, you can instantly print your certificate of completion.

Insurance Requirements in Detail

Oregon law mandates that contractors maintain both general liability insurance and, if applicable, workers' compensation insurance.

General Liability Insurance

What is Liability Insurance?: Liability insurance is a contract between a contractor and an insurance company to reimburse a third party (such as a consumer) for property damage or personal injury loss caused by the contractor.
Finding Liability Insurance: Public (general) liability and property damage insurance is available from many insurance companies at varying prices. Here are some tips for finding coverage:
- Ask your insurance agent (home or auto) if they know someone who specializes in contractor insurance.
- Talk to other contractors in your line of work about who they use and like.
- Do an Internet search for contractor liability coverage in your community.
- Check with your trade association for referrals.
Submitting your Insurance: The Certificate of Insurance must be issued in the full legal name of the sole proprietor; full legal names of all partners in a partnership or joint venture; the full legal names of all partners in an LLP and the name of the LLP; the name of the corporation, LLC, or trust. The certificate holder must be listed as the Construction Contractors Board, PO Box 14140, Salem, OR 97309. The amount of the insurance must be at least equal to or higher than the insurance amounts in the endorsement chart. The certificate of insurance must include a statement that products and completed operations coverage is included.

Workers Compensation Insurance

What is workers compensation insurance?: Workers compensation insurance covers employees who are injured on the job. It pays for medical treatment, lost wages, disability and re-employment help, if needed.
Exempt vs. Non-Exempt: Ordinarily, exempt contractors are businesses that do not have employees. These businesses do not need workers compensation insurance. Non-exempt contractors are businesses that hire or lease employees. These businesses need workers compensation insurance. In some cases, family-owned companies that do not hire employees are exempt contractors even if multiple family members work for the company.
Leased Workers: Worker leasing is a way for contractors to administer their workforce. In return for a fee, worker leasing companies provide workers and handle their payroll, employment taxes and assessments. They may also offer workers compensation insurance, retirement options and medical benefits.
Temporary Staffing: In contrast, a temporary service provider provides workers “on a temporary basis.” A temporary service provider is not licensed by DCBS. Temporary workers are for special situations, such as: Employee absences or leaves, Professional skill shortages, Seasonal workloads, Special assignments or projects.

Surety Bond Requirements

Oregon law also requires contractors to carry surety bonds to protect consumers.

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What is a Surety Bond?

A surety bond is a promise by a bonding company to pay all or a portion of a CCB final order if a contractor fails to pay the order in order to protect consumers. A property owner can file a CCB complaint against a contractor for breach of contract or improper work. If the CCB orders a contractor to pay money to the complainant, the contractor must pay as ordered. If the contractor does not do so, the bonding company will pay the money owed, up to the amount of the bond.

Bond Details

The bond(s) MUST accompany the application. CCB bonds are available from many bond and insurance companies at varying prices. The bond(s) must be issued in the full legal name of the sole proprietor; all partners full legal names in a partnership or joint venture (JV); the full legal names of all partners in an LLP and the name of the LLP; the name of the corporation, LLC or trust.

The Role of the Responsible Managing Individual (RMI)

Most endorsements are required to have a Responsible Managing Individual (RMI). The RMI may be an owner, officer, partner, or employee of the business applying for the license. The RMI must have management or supervisory authority over the construction activities of the business. The RMI may only be listed on one license at a time as the RMI employee.

RMI Qualifications

To qualify to be the RMI, the individual must:

Complete the 16-hour pre-license training and pass the Oregon contractor exam, OR
Pass the NASCLA commercial contractor national exam and pass the Oregon contractor exam, OR
Provide one or more Oregon license numbers that the owner, officer, member, or RMI has been continuously associated with during the time period beginning before July 1, 2000, until the date of their application, with no lapse of more than 24 months.
Not be listed as an RMI employee on another license

The RMI must also complete a background check after turning in the application to the agency.

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RMI Changes

If the RMI leaves the business, the business must notify the CCB in writing immediately. The business will need to submit an RMI change form to appoint a qualified individual as the new RMI. Since the qualification process does take some time, you should also designate a temporary RMI and submit a temporary RMI form.

Selecting the Right Endorsement

Contractors must carry the proper endorsement for the type of structures they work on. In selecting the correct endorsement, you will need to know such information as whether you will just work on residential or commercial structures, or whether you will work on both.

Endorsement Chart

This chartcan help you select the right endorsement for your work!

Changing endorsements?

Endorsement Change form

Special Residential Endorsements

The Legislature created new types of licenses for people who work in the construction industry but with a limited scope of work. People with these endorsements do not have the same bond, insurance and education requirements as other construction contractors.

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