On June 18, 2015, Oregon Governor Kate Brown signed Senate Bill 574 into law including amendments to contractor license surety bonds in Oregon. Contractors who perform residential restoration work are now required to post a $10,000 surety bond.
Any contractors performing restoration work on either residential or small commercial structures damaged by either man-made or natural disasters are subject to this new regulation.
A number of contractor types in Oregon were required to post bonds prior to this amendment to provide financial safety nets to consumers, however, the former legislation did not extend to restoration contractors.
By posting and maintaining a surety bond, contractors are promising to abide by all rules and regulations stated in the Oregon Revised Statutes. If a principal is discovered working on a contractual restoration project and fails to conduct services in accordance with the law, consumers are protected against damages or financial losses.
Current Contractor Bond Requirements in Oregon:
- Residential general contractor: $20,000
- Residential specialty contractor: $15,000
- Residential limited contractor: $10,000
- Residential developer: $20,000
- Residential locksmith services contractor: $10,000
- Home inspector services contractor: $10,000
- Home services contractor: $10,000
- Home energy performance score contractor: $10,000
- Residential restoration contractor: $10,000
Restoration work, as defined by Section 2 Chapter 701 of the Oregon Revised Statutes, can vary between the following services:
- Non-routine cleaning, water removal or personal property inventory
- Board-up services (covering up openings of a damaged structure to prevent unauthorized entry and to secure against weather)
- Debris removal (excluding removal involving demolition work)
Please note: this bill was signed into law but not effective until January 1, 2016. You will need to have your bond filed with the state on or before the effective date in order to be in compliance and operate business lawfully.
Photo by ArmchairBuilder.com (CC BY 2.0)