How to Get an Oregon Construction Contractor License

Every licensed business must always have at least one Responsible Managing Individual (RMI), an owner or employee who manages or supervises the company's construction work. The RMI must be at least 18, complete at least 16 hours of pre-license training from a CCB-approved provider, and then pass the Oregon exam on laws, rules and business practices. The training provider notifies PSI when you finish, and PSI sends instructions to register.

Applicants who have passed the NASCLA Accredited Examination for Commercial General Building Contractors skip the 16-hour course but still take the Oregon exam; they email the NASCLA transcript to the CCB to become eligible. Once you pass, you have 24 months to apply for the license.

ORS 701.021 requires an endorsement matching the structures you work on. Residential endorsements include residential general, residential specialty, residential limited, residential developer and several narrow ones such as home inspector services, home services and locksmith services. Commercial endorsements include commercial general contractor level 1 and level 2, commercial specialty contractor level 1 and level 2, and commercial developer.

A company that works on both kinds of buildings carries both endorsements, with both a residential and a commercial bond. The CCB publishes an endorsement chart to help, and a residential specialty contractor who later bids a large commercial job must change the license first.

The bond must be on the CCB's own form, in the company's exact legal name, with the power of attorney attached, and it must reach the CCB within 60 days of being signed. The liability certificate must name the Construction Contractors Board as certificate holder and show products and completed operations coverage. Common minimums from the CCB page:

File your corporation, LLC or assumed business name with the Oregon Secretary of State's Corporation Division, because the bond and insurance must match the name on file. If you will hire employees, you are a nonexempt contractor and need workers' compensation coverage along with state and federal employer numbers; commercial contractors must carry workers' compensation. Businesses with no employees are usually exempt, and a family-owned partnership, corporation or LLC in which every partner, officer or member is family can be exempt even when several relatives work in it.

A complete application includes the bond with its power of attorney, the insurance certificate, the certification and signatures form, and a $400 fee for a two-year license. The CCB recommends applying online and warns that processing can take six to eight weeks, longer if something is missing, so submit everything together rather than in pieces.

Under ORS 701.305, a contractor may not work on a residential structure for a property owner without a written contract when the price exceeds $2,000, and a job that grows past $2,000 needs a written contract delivered within five days of knowing it will. Commercial level 1 and level 2 contractors also designate key employees, whose continuing education is tracked each year.

Electricians and plumbers hold separate Oregon trade licenses, and landscape contracting is licensed by a different agency, the Landscape Contractors Board, which runs its own PSI exams.

A CCB license lasts two years from issuance (ORS 701.063). Residential contractors renew only after the CCB has proof of continuing education: 3 hours of CCB laws, regulations and business practices classes plus 5 hours of other approved courses if licensed six years or more, or 13 hours of other courses if licensed less than six years. Commercial level 1 firms need key employees to complete 40 hours a year, or 8 hours per key employee if they have four or fewer, and level 2 firms need 16 hours a year. Firms licensed for both residential and commercial work follow only the commercial rules.

Some firms are exempt, such as those with an Oregon-licensed electrician or plumber as owner, officer or employee. If a license lapses for more than two years, you start over with training and the exam.

The Oregon exam is open book and built on the NASCLA Oregon manual. ContractorPrepHQ offers extra practice for it: original questions written from the PSI outline and the listed reference, a diagnostic, drills with explanations and timed practice exams with a readiness score, for a one-time $99 with lifetime access and a 30-day money-back guarantee. It is not the 16-hour course; that training must still come from a provider on the CCB's approved list, and only that provider can make you eligible to test.