Evergreen landscapes aren’t the only type of green you can find in Oregon. Contractors can find increasing construction work and income in the state since 2021.
If you want to become a contractor in Oregon, you’ll need to complete pre-licensing training, pass an exam, hold an official business name, choose an endorsement, and provide necessary documentation like your insurance and worker’s comp information.
Keep reading below for a detailed outline of this process.
Do You Need a Contractor’s License in Oregon?
Anyone in Oregon who is paid for construction activity and property improvements will need to be licensed. This includes contractors working on roofing, siding, painting, carpentry, concrete, HVAC work, handyman work, and more.
In the state of Oregon, contractors are defined as any person who constructs, alters, repairs, adds to, takes away from, improves, inspects, moves, wrecks, or demolishes a structure in the state. Contractor licenses are issued by the Oregon Construction Contractors Board.
If you are just cleaning up a residence by clearing out gutters, power washing sidewalks, or the like, you do not need a license.
How to Get Your OR Contractor’s License
To become a contractor in Oregon – no matter your specialization – you’ll need to complete the following steps.
For extra assistance, check out the OR Guide to Becoming a Contractor.
- Select a Responsible Managing Individual
The Responsible Managing Individual (RMI) is the person who will represent your business and oversee all contracting work once licensed. This person can be one of the business owners, a partner, an officer, or a full-time employee. They must be18 years or older with no construction debts or disqualifying criminal convictions.
RMIs will be the ones to complete pre-licensing training and they must pass the official exam to grant contracting rights to their business. They will also be required to pass a background check.
If your RMI ever leaves your business, it is your duty to notify the state and replace them with a new adequate RMI if you want to continue to perform contracting work.
The following license types do not need an RMI:
- Residential Developer
- Residential Locksmith Services Contractor
- Home Inspector Services Contractor
- Home Services Contractor
- Home Energy Performance Score Contractor
- Residential Restoration Contractor
- Complete Pre-Licensing Training
Once selected, the RMI will complete 16 hours of pre-licensing training. If they already passed the NASCLA commercial contractor national exam, they are not required to complete the training.
This training should be from approved education providers. They will be able to choose from live classes, self-study by mail, and self-study online options.
The pre-licensing training better prepares the RMI for the official contractor’s exams. Once they complete your training, the education provider will notify PSI (the exam vendor), allowing them to schedule their state exam.
- Take the Exam
After the training, the RMI is responsible for taking and passing the Oregon contractor exam. Alternatively, they can also pass the NASCLA commercial contractor national exam AND the Oregon contractor exam.
The OR contractor exam is 80 multiple-choice questions and open-book. It is given during a 3-hour slot and covers these topics, based on the NASCLA Contractors Guide to Business, Law and Project Management.
You must get a 70% or higher to pass and your score will be determined immediately after you finish your exam. If you fail, you will need to reschedule, re-pay the exam fee, and test again as soon as possible.
Exams are given through PSI at their office locations. Clackamas Community College students may also be able to take the test through their college. Check out the PSI exam bulletin for more information.
Once you pass your exam, you have 24 months to apply for your OR contractor’s license.
- Choose an Endorsement
Oregon offers many contractor license endorsements which specify the kind of contractor work you plan to do. If your endorsement doesn’t reflect that type of contract work, you won’t be able to bid on or undertake such projects.
Each endorsement has different experience requirements. You can get multiple endorsements under the same license so long as the RMI qualifies.
Endorsements are often determined by the structures you plan to work on. Some examples include:
- Residential structure
- Small commercial structure
- Specialty contractors
- Developers
- And more…
Use this chart by the state to help determine which endorsement is for you.
- Prepare Your Business
Before applying for your OR license, you’ll need to file your business properly. If you’re part of a corporation, LLC, or have an assumed business name, you will file with the OR Secretary of State, Corporation Division.
Make sure you follow all the steps in the Oregon Business Guide before moving forward with your application or your license may not be granted. This includes getting your business’s federal tax number, a CCB surety bond in the required amounts, general liability insurance, and worker’s compensation insurance (if hiring employees). Your RMI must also take and pass a background check after passing their exam.
- File Your Paperwork
Once your exams are complete and your business documents are in order, it’s time to file your paperwork and apply for your license.
There are separate applications for residential, commercial, and residential and commercial contractors. You will need to include:
- Your original bond
- Insurance certificate(s)
- A $325 fee by credit card or check
- Proof of passing exam marks
- Your RMI’s background check information
Applications take between 3 and 4 weeks to process. You can mail in your completed application and documents to:
P.O. Box 14140
Salem, OR 97309-5052
Oregon Contractor License Renewals
Oregon contractor licenses must be renewed every two years. You must complete the renewal process online with your old account information or by creating a new account.
Oregon Contractor License Fees
Fees are updated every year. As of 2022, here are the fees associated with getting your OR contractor’s license.
- Exam fee for PSI: $60
- Application fee: $325
- License renewal fee: $325
- Endorsement change: $20
- License reactivation: $20
- License inactivation: $20
For additional fees depending on the endorsement, see here.
