construction contractors license application – step-by-step
TRANSCRIPT
Select a business entity:
Limited Liability Company (LLC)
Unincorporated association having one or more members, who are the owners.
May be managed either by members or managers.
Create:
Limited Liability Company (LLC)
Oregon LLCs must file “Articles of Organization” with the Oregon Corporation Division.
Other LLCs must file an “Application for Authority to Transact Business in Oregon” and a “Certificate of Existence” with the Oregon Corporation Division.
Register:
Assumed Business Name
Unless the LLC uses its legal name,
which must contain the words or
abbreviations for “limited liability
company,” the LLC must register any
other name, such as “A-1 Contractors,”
with the Oregon Corporation Division
Business Registry as an assumed
business name (ABN).
Determine:
Class of Independent Contractor
If the LLC has no employees and
no more than two unrelated
members, the LLC is an EXEMPT
independent contractor.
To qualify as EXEMPT, the
members must own at least 10% of
the business.
If the LLC has employees or more
than two unrelated members, the
LLC is a NON-EXEMPT
independent contractor.
Unrelated Members
Unrelated members are
persons who are not
members of the same
family.
“Family” refers to parents,
spouses, sisters, brothers,
daughters or sons,
daughters-in-law or sons-
in-law or grandchildren.
Workers’ Compensation
Insurance
If the LLC is Exempt and applies for a
Residential endorsement, it does not
need workers’ compensation insurance.
If the LLC is Non-Exempt or applies for
a Commercial endorsement, it needs
workers’ compensation insurance.
Workers’ Compensation
Insurance: Non-Exempt
If the LLC has employees,
it is Non-Exempt and
needs standard workers’
compensation insurance.
Workers’ Compensation:
Commercial Endorsement
If the LLC has no
employees, but holds a
commercial
endorsement, it needs
“Personal Election”
workers’ compensation
insurance for its
managers or members.
(For Employers) Obtain:
Workers’ Compensation
Obtain a 7-digit compliance number from
the Workers’ Compensation Division
(WCD); or
Obtain the name and policy number of a
workers’ compensation policy.
If you have questions, contact the WCD
at 503-947-7815.
(For Employers) Obtain:
Taxpayer Identification Numbers
Obtain an Oregon Business Identification
Number (BIN) from the Oregon Department of
Revenue. A registration form is available at
www.oregon.gov/DOR/BUS/doc/211-055.pdf.
Or call 503-378-4988.
Obtain a federal employer identification
number (EIN) from the Internal Revenue
Service (IRS). Contact the IRS at www.irs.gov
or call 800-829-4933.
Appoint:
Responsible Managing Individual (RMI)
Every contractor must appoint and maintain at least one RMI.
For a limited liability company, either the member, manager or an employee may qualify as an RMI. (If your RMI is an employee, make sure you selected the NON-EXEMPT independent contractor status).
The RMI must exercise management and supervisory authority over the construction activities of the business by meaningfully participating in: • the administration of the construction contracts; or
• the administration of the day-to-day business operations.
Training and Testing
The RMI must complete 16
hours of training offered by a
CCB-approved training provider.
(See instructions, pages 14 -15,
for list of approved providers).
The RMI must pass a test. (See
instructions pages 14 -15 for
scheduling testing).
Experience in Lieu of Training
and Testing
Training and testing is not required if: The RMI is listed on the CCB’s current licensing
records before July 1, 2000 as a sole proprietor, partner, or other principal of a business that was licensed before July 1, 2000, and
The business’ license has not lapsed, or, if lapsed, has not lapsed for more than 24 months (before the application date); and
The RMI was the sole proprietor, partner, or other principal within the 24-month period before the application date.
NOTE – You will next complete
Part 6 of the Application
You will complete Parts 4
and 5 of the Application
after reviewing additional
slides.
Endorsements – Related to
Types of Structures
To determine an endorsement, identify
the structure type upon which work will
be performed:
• Residential Structure
• Small Commercial Structure
• Large Commercial Structure
Residential Structure
Site-built home
Structure with one or more dwelling units only, four stories or less above grade
Condominium, rental or other residential unit part of a larger structure, separate property interest
Modular home
Manufactured dwelling
Floating home
Small Commercial Structure
Non-residential structure, area less than or equal to 10,000 square feet; not more than 20 feet high
Non-residential unit part of larger structure, area less than or equal to 12,000 square feet; not more than 20 feet high
Non-residential structure, any size, costs less than $250,000 for contract price of construction
Large Commercial Structure
A structure that
is not a
residential
structure or a
small
commercial
structure.
Select:
Endorsement by Structure Type
Residential Endorsement: May perform work involving residential or small commercial structures or projects.
Commercial Endorsement: May perform work involving small or large commercial structures or projects.
Both Endorsements: May perform work on any structure or project.
Endorsement Classifications –
Related to Scope of Work
To determine an endorsement classification, identify the scope of work that will be performed: • General Contractor
• Specialty Contractor
• Limited Contractor (Residential Only)
• Developer
General Contractor
A (prime) contractor
that supervises or
performs any
number of unrelated
business trades or
crafts
Specialty Contractor
A (sub) contractor
who performs two
or fewer
unrelated building
trades or crafts
Limited Contractor
(Residential Only)
A residential limited contractor can perform any number of unrelated building trades, but may not:
Perform work as a contractor exceeding $40,000 in gross annual income; or
Enter into contracts to perform work as a contractor in excess of $5,000.
Developer
Owns the property being developed;
Acts in association with general
contractors, one or more of whom
has sole responsibility for
overseeing all phases of the
construction; and
Does not perform any construction
work on the property.
Select:
Residential Endorsement Classification
Residential Endorsement
Classification
Scope of Work
Residential General Contractor
(RGC)
May supervise, arrange for, perform an unlimited
number of building trades.
Residential Specialty Contractor
(RSC)
May perform one or two unrelated building trades.
May perform more trades if cost for labor and
materials is $2,500, or less.
Residential Limited Contractor (RLC) May supervise, arrange for, perform an unlimited
number of building trades, if work per job site is
$5,000, or less, and annual gross is $40,000 or less.
Residential Developer (RD)
Owns property; arranges for work to be performed
by licensed contractors; does not perform any
construction work.
Select:
Commercial Endorsement Classification
Commercial Endorsement
Classification
Scope of Work
Commercial General Contractor Level 1
(CGC-1)
May supervise, arrange for, perform an
unlimited number of building trades.
Commercial General Contractor Level 2
(CGC-2)
May supervise, arrange for, perform an
unlimited number of building trades.
Commercial Specialty Contractor Level 1
(CSC-1)
May perform one or two unrelated building
trades.
Commercial Specialty Contractor Level 2
(CSC-2)
May perform one or two unrelated building
trades.
Commercial Developer (CD)
Owns property; arranges for work to be
performed by licensed contractors; does
not perform any construction work.
IMPORTANT TIPS – Level 1 and
Level 2 Commercial Contractors
Level 1 and Level 2 commercial contractors may perform the exact same types of work on the same structures or projects (small or large commercial).
Level 1 contractors must maintain a higher bond and more insurance coverage. (See below).
Key employees must have prerequisite experience:
Level 1 = 8 years
Level 2 = 4 years
Certify:
Experience for Commercial Contractors
An applicant for any Level 1 license must
certify that the applicant’s key employees
have 8 years of construction experience.
An applicant for any Level 2 license must
certify that the applicant’s key employees
have 4 years of construction experience.
See instructions, page 16, for education that
may substitute for experience.
Purchase:
Residential Surety Bond and
Insurance
Residential Endorsement
Classification
Residential
Bond
Insurance Policy
Residential General Contractor (RGC) $20,000 $500,000 per occurrence
Residential Specialty Contractor
(RSC)
$15,000
$300,000 per occurrence
Residential Limited Contractor (RLC) $10,000 $100,000 per occurrence
Residential Developer (RD) $20,000 $500,000 per occurrence
Purchase:
Commercial Surety Bond and
Insurance
Commercial Endorsement
Classification
Commercial
Bond
Insurance
Policy
Commercial General Contractor Level 1
(CGC-1)
$75,000 $2 million
aggregate
Commercial General Contractor Level 2
(CGC-2)
$20,000 $1 million
aggregate
Commercial Specialty Contractor Level 1
(CSC-1)
$50,000 $1 million
aggregate
Commercial Specialty Contractor Level 2
(CSC-2)
$20,000 $500,000 per
occurrence
Commercial Developer (CD) $20,000 $500,000 per
occurrence
IMPORTANT TIPS - Both
Endorsed Licenses
A licensee that holds both endorsement is a licensee that may perform work on all types of structures, residential, small commercial, and large commercial.
The licensee must maintain BOTH the residential and the commercial surety bonds.
The licensee need maintain ONLY ONE insurance policy, in the higher amount for the classification selected.
Select:
Standard Industrial Classification (SIC) Codes
SIC Codes are used to identify, for statistical purposes only, the type of work the contractor performs. The contractor should select between one and three codes.
Building Construction
1521 Single Family Houses
1522 Residential, Other than Single Family
1523 Operative Builders
1541 Industrial Buildings and Warehouses
1542 Nonresidential Buildings other than
Industrial Buildings and Warehouses
Heavy Construction
1611 Highways and Streets
1622 Bridge, Tunnel and Elevated Highways
1623 Water, Sewer, Pipeline, Communications, Power
Lines
1629 Heavy Construction not otherwise classified
Special Trades
1711 Plumbing, Heating and Air Conditioning
1721 Painting and Paper Hanging
1731 Electrical Work
1741 Masonry and Stone Work
Special Trades (Continued)
1742 Plastering, Drywall, Acoustical and Insulation
Work
1743 Tile, Marble and Mosaic Work
1751 Carpentry
1752 Floor Laying, Other Floor Work
1761 Roofing, Siding and Sheet Metal
1771 Concrete Work
1791 Structural Steel Erection
1793 Glass and Glazing Work
1794 Excavation Work
1795 Wrecking and Demolition Work
1796 Installation of Building Equipment
Not Elsewhere Classified
1799 Special Trades, not elsewhere classified
0783 Tree Services
7342 Pest Control
7349 Chimney and Other Structural Cleaning
7363 Help Supply Services
7389 Inspection Services
Residential Contractors -
Certified Home Inspectors
If a residential general contractor or a residential specialty contractor will perform home inspections, a member, manager or employee must be certified as a home inspector or must employ a certified home inspector.
List:
Debts and Criminal Convictions
The law requires disclosure of the
members’ and managers’ construction
debts or obligations relating to construction
activity that arose no more than 5 years
before the application.
The law requires disclosure of certain
criminal convictions of the members and
managers that occurred no more than 5
years before the application.
List:
Licensing History and Business Information
Applicants must provide information regarding their license histories as contractors, in Oregon as well as other states.
The application requests information, for statistical use only, relating to the amount of business that the applicant expects to perform in the upcoming year.
Sign and Date:
Application
Sign the application at Part 17
(page 12).
Members sign on the sixth and
seventh lines after the certification.
Print name of members.
Insert date that application was
signed.
Pay:
$325 fee
Complete part 18 (page 13) and submit application with a $325 non-refundable application fee. If qualified, the license will be issued for two years.
Payment may be made by check, money order, some credit cards, and cash (if delivered in person and exact amount only).