Oregon Owner-Builder Guide

Can I Be My Own General Contractor in Oregon?

Oregon allows property owners to manage their own construction projects — but it comes with real legal obligations, financial risks, and employer responsibilities most people don't expect.

As your own GC, you must verify every subcontractor's CCB license. Check any license free.

Can I be my own general contractor in Oregon?

Yes. Oregon law allows property owners to act as their own general contractor to build a new home or make a substantial improvement to a residence they own and intend to occupy. You do not need a CCB license to manage your own project. However, before any building permit can be issued, you must sign a Property Owner Statement Regarding Construction Responsibilities (ORS 701.325).

This statement acknowledges that you understand your legal obligations as an owner-builder — obligations that most homeowners significantly underestimate. The rest of this guide explains what those obligations actually are.

The owner-builder rule

The owner-builder exemption only applies to property you own and intend to reside in. It does not apply to investment properties, properties you intend to sell, or commercial projects. If you build or substantially renovate a home and sell it within a certain period, you may still face liability for construction defects.


Your legal obligations as an owner-builder

When you act as your own general contractor and hire workers who are not CCB-licensed subcontractors, those workers may be classified as your employees under Oregon law. As an employer, you are responsible for:

1

Workers' Compensation Insurance

Oregon's Workers' Compensation Law requires employers to carry workers' comp for all employees. If you hire unlicensed workers and one is injured on your job site, you may be liable for all medical and disability costs — even if you didn't formally hire them as an employee. This is one of the most significant financial risks of owner-building. Contact the Workers' Compensation Division at 800-452-0288 for information on obtaining coverage.

2

Payroll taxes — state and federal

As an employer, you must withhold Oregon income tax and pay Oregon unemployment insurance tax on employee wages. You must also withhold federal income tax and Social Security tax. Oregon requires a Business Identification Number (BIN) — a combined identifier for withholding and unemployment tax. Register at the Oregon Business Registry or call 503-945-8091. For a federal EIN, apply at irs.gov.

3

Liability insurance

Your standard homeowner's policy may not cover construction activity on your property. Contact your insurance agent to ensure you have adequate coverage for accidents, property damage, and injuries to workers not covered by workers' comp. Common incidents — a falling tool, paint overspray on a neighbor's car, water damage from a pipe puncture — can be costly without proper coverage.

4

Permits and code compliance

As the permit holder, you are responsible for scheduling all required inspections at the right project stages and for resolving any code violations found. Building officials will not approve the next phase of work until required inspections pass. If you miss an inspection or the work fails, the cost of remediation falls on you.


Verifying subcontractor licenses — your responsibility

The safest approach for owner-builders is to hire only CCB-licensed subcontractors for all trade work. Licensed subs carry their own workers' comp and liability insurance, removing most of the employer liability risk from you.

As an owner-builder, you are responsible for confirming that every subcontractor you hire holds a valid CCB license. You can verify any contractor's license, bond, and insurance status at CCB Lookup before they set foot on your job site. You can also browse licensed contractors by county to find candidates in your area.


Is it worth it to be your own general contractor?

Potential advantages

  • Save 10-20% on GC markup over subcontractors
  • Direct control over material and trade selection
  • Real-time visibility into every aspect of the project
  • Ability to make changes quickly without going through a middleman
  • Can use your own labor for non-permit work

Real risks and costs

  • Workers' comp and employer tax obligations
  • Requires significant time on-site daily
  • No access to a GC's established subcontractor relationships
  • Scheduling mistakes can be expensive (idle crews, delayed inspections)
  • Code compliance responsibility is entirely yours

Owner-building works best for people with construction or project management experience, significant available time, and a tolerance for complexity. For most homeowners, the savings don't justify the risk. For experienced builders or contractors who are building their own home, it can make strong financial sense. Review the most common hiring mistakes before deciding which path to take.


Frequently Asked Questions

Yes. You can act as your own GC for a home you own and intend to occupy, without a CCB license. You must sign the Property Owner Statement (ORS 701.325) before permits are issued. All subcontractors you hire must hold valid CCB licenses.

Typically 10-20% on subcontractor markup plus the GC's management fee (usually 10-15% of total project costs). On a $300,000 project that could be $30,000-$60,000. However, scheduling errors, code violations, and employer liability costs can quickly reduce those savings.

If you hire workers who are not CCB-licensed subcontractors, those workers may be classified as your employees — and Oregon law requires you to carry workers' comp for employees. If you only hire CCB-licensed subs, they carry their own coverage. Call the Workers' Compensation Division at 800-452-0288 to clarify your specific situation.

Yes — and it's your responsibility, not the building department's. Verify any subcontractor's CCB license before they begin work. A licensed sub carries their own bond and insurance. An unlicensed sub may make you liable as their employer.

Last updated: February 2026. Information sourced from the Oregon CCB (oregon.gov/ccb) and ORS 701.325. Not legal advice.

Verify Your Subcontractors

As your own GC, every sub must hold a valid CCB license. Verify any license in 30 seconds.

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Owner-Builder Checklist
  • Signed Property Owner Statement (ORS 701.325)
  • Building permits obtained
  • Oregon BIN registered (if hiring labor)
  • Workers' comp coverage confirmed
  • Liability insurance updated
  • All subs verified with active CCB licenses
  • Inspection schedule confirmed with building dept
  • Permit holder sign-off for each phase
Key Contacts
  • Workers' Comp Division: 800-452-0288
  • Oregon Dept of Revenue: 503-378-4988
  • Oregon Employment Dept: 503-947-1488
  • Oregon Business Registry: 503-945-8091
  • CCB: 503-378-4621