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How To Earn Your License And Become A Concrete Contractor In Oregon
You want to start a business as a concrete contractor, but you are not exactly sure where to start. We want to help guide you through the process! The state of Oregon requires you to have a contractor’s license before you begin to undergo any contracting jobs. Having a license will take your business to the next level in terms of taking on bigger projects and establishing profitable partnerships in your local community.
So, where do you begin and what does the state require from you? Allow us to answer those questions:
Why You Need
A License
The simple answer is that Oregon has licensure laws that you can’t ignore. A license gives you the approval to undergo projects as a general contractor. To earn your license, you will also need to pass an exam administered by the state.
Oregon requires you to have business insurance before you begin applying for your contractor’s license. This includes general liability insurance which will cover you when injuries, accidents or damages occur while on the job. You can always shop around and ask for quotes from providers. This will allow you to compare prices and find an insurance plan that works for your business.
What
Oregon Requires
We understand that the process of obtaining a contractor’s license can be a little overwhelming. However, we want to help simplify the process by creating a to-do list of requirements. Here is what you need to get done ahead of time:
The Size And Scope of
Required Documents
You need to know beforehand the extent of the work you plan on providing. Oregon has two separate classifications in terms of the size and scope of construction projects:
- Residential Contractors – This allows you to work on smaller building projects, single-family homes, 4-unit apartment buildings, or single units within a high-rise. You also have the option to work on smaller commercial projects, such as gas stations or small restaurants.
- Commercial Contractors – We recommend that you apply for a commercial license if you want to take on large-scale projects. Some examples include hospitals, shopping malls, or parking garages.
You can always apply for a dual license. The size of the projects will also affect the requirements of your surety bonds and general liability insurance coverage. If you want to learn more about the differences between these two classifications, we encourage you to visit the website of the Oregon Construction Contractors Board.
Meeting
Basic Requirements
Before filling out your application and taking your contractor’s exam, You will need to meet a few basic requirements:
- You must be at least 18 years of age
- You must log at least 16 hours of training on law and business practices
- You must receive your training from an approved instructor who will also alert the testing company when you complete the course
Complete And Pass
Your Contractor’s Exam
Once you complete the mandatory 16 hours of training, you can then schedule your licensing exam via PSI. To prepare and study for your exam, you can refer to the NASCLA Contractors Guide to Business, Law and Project Management. You will also need to pay a $60 fee to take your exam. The test is open book, but we still recommend that you take the time to study.
What You Should Include
With Your Application
When filling out your application, you need to include a few items and documentation that the state requires from everyone. Here is what they are:
- A registered business name: The state of Oregon requires you to register your business and establish a business structure. Some examples of this include sole proprietorships, LLCs and corporations.
- Surety Bonds: What is a surety bond? It is a failsafe for contractors who are unable to complete a project. If you breach your contract, your client can file a claim against you to receive proper compensation. Surety bonds protect you by covering any financial obligations that you can’t pay.
- General Liability Insurance: The state wants to ensure that everyone is protected in case something goes wrong. General liability insurance comes in handy when accidents, injuries and damages occur.
- Workers’ Compensation Insurance: If you plan on employing anyone, then you will need workers’ compensation insurance. The state will levy penalties against any business that doesn’t have it.
- Social Security or tax numbers: For tax purposes, you will need to include your Social Security Number or Federal Employee Identification Number in your application.
Submitting Your
Application And Renewals
Included in your application are your exam scores, proof of insurance and surety bond, and general information regarding your company. Now all you need to do is submit your application and pay the submission fee.
We also want to mention that you will need to renew your license every two years. Renewals are fairly simple – all you need to do is take the continuing education classes. Once you receive your license, you can begin advertising your business and providing services as a concrete contractor!
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