Licensing Guides
State Contractor License: How to Become a General Contractor in Oregon
Contractor, OR
Table of Contents
Why Do You Need a Contractor License in Oregon?
How Can You Get a Contractor License in Oregon?
Types of General Contractor Licenses in Oregon
What Are the Requirements of an Oregon Contractor License?
How Long Does It Take to Get a Contractor License in Oregon?
How Much Does It Cost to Get a Contractor License in Oregon?
Oregon Contractor License Training Programs and Schools
Does Oregon Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Oregon?
Are There Any Penalties for Contracting Without a License in Oregon?
We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives, and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these people to know what they’re doing.
Many states require tradespersons to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide, according to the Bureau of Labor Statistics (BLS). Oregon employs 3,540 managers and 13,090 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In Oregon, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate is higher, at 17% for laborers and 16% for managers. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started.
Why Do You Need a Contractor License in Oregon?
Oregon law requires anyone who works for compensation in any construction activity involving real property improvements to be licensed. This includes residential and commercial work, whether initial construction projects or service or replacement/renovations to existing structures.
Licensing is overseen by the Oregon Construction Contractors Board (Oregon CCB).
How Can You Get a Contractor License in Oregon?
The Oregon Construction Contractors Board includes a guide to becoming a licensed contractor on its website at oregon.gov/ccb, as well as a recorded webinar on the process. You must be 18 years of age to become a contractor in Oregon.
No matter the license type, the process includes completing a 16-hour pre-license training, taking an exam, and registering your business (LLC, sole proprietorship, partnership, or corporation) with the Oregon Secretary of State.
Commercial General Contractors and Specialty Contractors need between four to eight years of construction experience, depending on the license endorsement they want to obtain. Completion of an apprenticeship program or a bachelor’s degree in a construction-related field may substitute for up to three years of experience. The Oregon Bureau of Labor & Industries maintains a list of apprenticeship opportunities on its website. A bachelor’s degree or master’s degree in business, finance, or economics may substitute for up to two years of experience. An associate’s degree in construction or building management may substitute for up to one year of experience.
In addition, you’ll have to obtain general liability insurance, a surety bond, and workers’ compensation if you plan to hire employees. Finally, the application incurs a $325 fee.
Types of General Contractor Licenses in Oregon
The state of Oregon has multiple residential and commercial license endorsements. Contractors with a residential endorsement may work on residential and small commercial structures. Small commercial structures are defined as:
A non-residential structure of 10,000 square feet or less and is not more than 20 feet high
A non-residential unit that is part of a larger structure, if the unit is 12,000 square feet or less and is not more than 20 feet high
A non-residential structure of any size for which the entire contract of all construction work to be performed on the structure is $250,000 or less
Contractors with a commercial endorsement may work on both large and small commercial projects. Contractors who perform work on residential and large commercial structures must have both a residential and a commercial endorsement.
The different types of endorsements available for general contracting include:
Residential General Contractor (RGC): May supervise, arrange for, or perform an unlimited number of unrelated building trades involving any residential or small commercial structure or project.
Residential Specialty Contractor (RSC): Perform work involving one or two unrelated building trades for residential or small commercial projects. May perform work on a single property involving three or more unrelated building trades if the contract for labor and materials is $2,500 or less. Building trades may vary based on project. For example, a contractor could do masonry and roofing on one project, then painting and floor covering on another.
Residential Limited Contractor (RLC): Common license type for a part-timer or a handyman. May supervise, arrange, and/or perform any unlimited number of unrelated building trades involving residential or small commercial structures, if they meet the following requirements:
Expects gross sales of less than $40,000 from the construction business in the next year
Doesn’t contract to perform work valued higher than $5,000
Agrees that if gross construction business volume exceeds $40,000 during the year, they will immediately notify the CCB, change their endorsement, and increase bond and insurance coverage if required
Home Service Contractor (HSC): May operate a business offering service, repair, or replacement under a home services (warranty) agreement.
Residential Restoration Contractor (RRC): May operate a business offering restoration services for residential and small commercial structures.
Commercial General Contractor Level 1 (CGC1): May supervise, arrange for, or perform an unlimited number of unrelated building trades involving any small or large commercial structure or project.
Commercial General Contractor Level 2 (CGC2): Level 1 and 2 Commercial General Contractors are certified for the same work.
Commercial Specialty Contractor Level 1 (CSC1): May perform work involving one or two unrelated building trades for small or large commercial projects. Trades can vary from job to job.
Commercial Specialty Contractor Level 2 (CSC2): Level 1 and 2 Commercial Specialty Contractors are certified for the same work.
There are also endorsements for home inspectors, residential developers, home inspection contractors, and commercial developers.
Getting a general contractor license in Oregon
The licensing process is similar regardless of the endorsement. The steps include:
CHOOSE LICENSE AND ENDORSEMENT TYPE: Choose Residential or Commercial, or both, as well as endorsements, based on the type of work you complete. This determines experience, bond, and insurance requirements. Consult the CCB License Endorsements Chart for assistance.
MEET EXPERIENCE REQUIREMENTS: Commercial General Contractors and Commercial Specialty Contractors need either four (Level 2) or eight (Level 1) years of construction experience. Completion of an apprenticeship program or a bachelor’s degree in a construction-related field may substitute for up to three years of experience. A bachelor’s degree or master’s degree in business, finance, or economics may substitute for up to two years of experience. An associate’s degree in construction or building management may substitute for up to one year of experience.
REGISTER BUSINESS: Register your sole proprietorship, LLC, partnership, or corporation, including its business name, with the Oregon Secretary of State, Corporation Division.
OBTAIN REQUIRED INSURANCE: Obtain a surety bond, general liability insurance, and workers’ compensation insurance (if you plan to have employees). Coverage amounts are based on the license endorsement:
Residential General Contractor (RGC): $25,000 residential bond; $500,000 per occurrence
Residential Specialty Contractor (RSC): $20,000 residential bond; $300,000 per occurrence
Residential Limited Contractor (RLC): $15,000 residential bond; $100,000 per occurrence
Home Service Contractor (HSC): $15,000 residential bond; $100,000 per occurrence
Residential Restoration Contractor (RRC): $15,000 residential bond; $100,000 per occurrence
Commercial General Contractor Level 1 (CGC1): $80,000 commercial bond; $2 million aggregate insurance
Commercial General Contractor Level 2 (CGC2): $25,000 commercial bond; $1 million aggregate insurance
Commercial Specialty Contractor Level 1 (CSC1): $55,000 commercial bond; $1 million aggregate insurance
Commercial Specialty Contractor Level 2 (CSC2): $25,000 commercial bond; $500,000 per occurrence
COMPLETE 16-HOUR TRAINING: The Responsible Managing Individual (RMI), who must be an owner or employee of the business and manage or supervise its construction activities, is required to complete at least 16 hours of pre-license training from an approved pre-license education provider. There are in-person and online options available. Once you complete the training, the pre-license course instructor will direct you to the testing facilitator.
PASS EXAM: Get a score of 70% or higher on the open-book exam, which is based on the NASCLA Contractors Guide to Business, Law and Project Management (Oregon version). Apply for a license within 24 hours of passing the exam.
SUBMIT LICENSE APPLICATION: Fill out the application online or download a paper application. Along with the application, submit the bond with power of attorney, insurance certificates, copy of your test score, and the $325 application fee. Online processing time can take up to eight weeks, and paper applications will have a longer processing time.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in Oregon.
What Are the Requirements of an Oregon Contractor License?
There are age, knowledge/experience, and financial prerequisites.
You must be at least 18 years of age.
You must meet experience requirements for commercial licenses.
Complete 16-hour training course.
Take and pass all parts of the licensing exam.
Secure contractor’s surety bond, general liability insurance, and workers’ compensation insurance (if you have employees).
Pay all fees.
How Long Does It Take to Get a Contractor License in Oregon?
If you intend to get a Commercial license, you need four years of construction experience for a Level 2 Commercial General Contractor or Specialty Contractor license, and eight years of construction experience for a Level 1 Commercial General Contractor or Specialty Contractor license.
Completion of an apprenticeship program or a bachelor’s degree in a construction-related field may substitute for up to three years of experience. A bachelor’s degree or master’s degree in business, finance, or economics may substitute for up to two years of experience. An associate’s degree in construction or building management may substitute for up to one year of experience. Application processing time takes about eight weeks.
What Business Owners Need to Know
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How Much Does It Cost to Get a Contractor License in Oregon?
The costs associated with obtaining a contractor license in Oregon include:
16-hour training: Varies based on the course. Online options are more affordable than in-person learning. Current online classes range from $84 to $385 with a manual or $23 to $325 without a manual. In-person offerings range from $250 to $550 with a manual or $200 to $500 without a manual.
Test: $60
Application fee: $325
Oregon Contractor License Training Programs and Schools
There are many higher education options throughout Oregon that offer these types of programs. They include:
Does Oregon Reciprocate Contractor Licenses?
Oregon does not have general contractor license reciprocity with any other state. Applicants who have passed an NASCLA-accredited exam for commercial general building can request an exemption from the 16-hour pre-licensure training, but still need to pass the exam.
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Do I Need to Renew my Contractor License in Oregon?
Yes, contractor licenses must be renewed every two years for a $325 fee.
Are There Any Penalties for Contracting Without a License in Oregon?
Unlicensed contractors may face fines and civil penalties from the Oregon Construction Contractors Board (CCB). Penalties can vary based on the severity of the violation, previous offenses, and whether the unlicensed contractor knowingly advertised or provided contracting services.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Residential license holders must complete the following continuing education hours prior to renewal:
3 hours of CCB laws, regulations, and business practices classes
5 hours of other approved courses if you have been licensed for six or more years
13 hours of other approved courses if you have been licensed less than six years
The amount of continuing education hours Level 1 Commercial license holders need depends on their number of key employees (corporate officers, managers, superintendents, forepersons, lead persons, supervisors):
1 key employee: 16 hours
2 key employees: 32 hours
3 key employees: 48 hours
4 key employees: 64 hours
5+ key employees: 80 hours
Level 1 Commercial General or Specialty contractors need 32 hours of continuing education prior to renewal.
The CCB maintains an online catalog of approved courses.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
ServiceTitan is a comprehensive business software solution built specifically to help service companies streamline their operations, boost revenue, and achieve growth. Our award-winning, cloud-based platform is trusted by more than 100,000 contractors across the country.
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