How do I collect from a contractor's surety bond in Oregon?

To collect from an Oregon contractor's surety bond, you must: (1) have an active CCB complaint against the licensed contractor, AND (2) obtain a certified court judgment or arbitration award in your favor that goes unpaid by the contractor. You cannot access the bond through mediation alone - a court judgment is required. Once you have a certified judgment, submit it to the CCB. Bond payout takes at least 60 days from the date the CCB receives the certified judgment.

How much is a contractor's surety bond in Oregon?

Oregon surety bond amounts depend on license type. Residential General Contractors (RGC) carry a $25,000 bond. Residential Specialty Contractors (RSC) carry $20,000. Residential Limited Contractors carry $15,000. Commercial General Contractors Level 1 carry $80,000. These are the maximum amounts available to pay all claims - not per-claimant limits.

What if there are multiple claims against the same contractor bond?

If multiple claims are filed against the same contractor's bond within the same 90-day period, the CCB holds payment until all claims within that period are resolved. This prevents a 'race to the bond' and ensures that similarly situated claimants have an equal chance of recovery. The bond amount is shared among all valid claimants if total claims exceed the bond limit.

What should I do if my contractor dispute also involves a homeowner insurance claim?

The bond claim (CCB process) and the insurance claim (insurer process) run separately. Under Oregon law, insurers have 45 days to complete a claim investigation and 30 days to respond to any inquiry. If your insurer is unresponsive or you disagree with the settlement, contact the Oregon Division of Financial Regulation (DFR) at dfr.oregon.gov - their consumer advocates can intervene free of charge and have helped get claim denials overturned. Contact DFR before hiring an attorney.

How do I spot contractor scams after a disaster in Oregon?

Red flags include: contractors who approach you door-to-door after a disaster, unusually low bids with pressure to decide immediately, requests to pay in full upfront or make the check out to an individual instead of a business, and contractors who offer 'leftover materials' from a nearby job. Always verify the CCB license by number before allowing any contractor onto your property - search at ccblookup.com or oregon.gov/ccb.

Oregon Consumer Protection Guide

How to Collect from a Contractor's Surety Bond in Oregon

Q: Can I collect from the bond if mediation failed?

Mediation alone does not give access to the bond. The only path to bond recovery is: active CCB complaint + certified court judgment or arbitration award that goes unpaid. If mediation fails, you must file in court within 30 days of the CCB's notice, obtain a judgment, and submit it to the CCB.

A contractor's surety bond is your financial safety net when things go wrong. But collecting from it requires specific legal steps that most homeowners don't know about until it's too late.

Verify a contractor's bond is active before work begins - it's your first protection.

Check Bond Status

What is a contractor's surety bond?

A surety bond is a financial guarantee that protects property owners when a licensed contractor fails to complete work, causes damage, or fails to pay subcontractors and suppliers. Oregon requires every CCB-licensed contractor to maintain a surety bond as a condition of their license.

The bond is not insurance for the contractor - it protects you. If a contractor breaches their contract, abandons the project, or causes compensable damage, the bond is the financial resource available to compensate you. Bond amounts range from $15,000 for smaller license types to $80,000 for Commercial General Contractors Level 1.

The critical thing most homeowners don't know

Mediation alone does not give you access to the bond. The only path to bond recovery is an active CCB complaint plus a court judgment or arbitration award that goes unpaid by the contractor. You cannot bypass the court step. This is why acting quickly - and filing your CCB complaint before deadlines expire - is so important.

The two requirements to collect from the bond

Active CCB Complaint

You must have an open, active complaint filed with the Oregon CCB against the licensed contractor. The complaint keeps your claim on record with the board and the surety company.

Certified Court Judgment

You must obtain a certified court judgment or arbitration award in your favor that goes unpaid by the contractor. This is the only mechanism that unlocks bond payment. No exceptions.

Step-by-step: how to collect from the bond

Verify the bond is active before anything else

Before investing time in the complaint process, verify the contractor's bond status at CCB Lookup. A license can be Active while the bond has expired - they have separate expiration dates. If the bond is expired, there is nothing to collect from through the CCB process, though other legal remedies may still be available through the courts.

For a full walkthrough of the insurance claim process alongside the bond claim, see our Oregon Homeowner Insurance Claim Guide →

File the CCB complaint promptly

File as soon as possible - the bond amount is limited and there may be multiple claimants. The CCB notes that people should "file a complaint promptly" because the bond amount is finite and shared among all valid claimants. Strict filing deadlines apply - typically one year from the date work was substantially completed. See our full guide on how to file a CCB complaint.

Attempt mediation

After jurisdiction is confirmed, the CCB will schedule mediation. About 70% of disputes resolve at this stage - which is faster and cheaper than going to court. If you reach a settlement at CCB mediation, the signed agreement is a binding contract. If the contractor breaches the settlement, you are back in court - but with a stronger position.

File in court if mediation fails

If mediation is unsuccessful, the CCB notifies you to file in court within 30 days. Small Claims Court handles claims up to $10,000 without an attorney - the fastest path for smaller disputes. For claims over $10,000, Circuit Court is required and typically involves an attorney. Note: attorney fees are not covered by the surety bond - you pay them regardless of outcome.

Obtain a certified judgment and submit to CCB

Once you win a judgment in court, obtain a certified copy. If the contractor does not pay within the required period, submit the certified judgment to the CCB. The CCB then processes the bond claim. Bond payout takes at least 60 days from the date the CCB receives the certified judgment.

Bond amounts by license type

License type	Bond amount	Insurance minimum
RGC - Residential General Contractor	$25,000	$500K/occ.
RSC - Residential Specialty Contractor	$20,000	$300K/occ.
RLC - Residential Limited Contractor	$15,000	$100K/occ.
CGC1 - Commercial General Level 1	$80,000	$2M agg.
CGC2 - Commercial General Level 2	$25,000	$1M agg.
CSC1 - Commercial Specialty Level 1	$55,000	$1M agg.
CSC2 - Commercial Specialty Level 2	$25,000	$500K/occ.

Important: bond amounts are shared, not per-claimant

The bond amount is a total pool available to all valid claimants - not a per-person limit. If a $25,000 RGC bond has $30,000 in valid claims against it, each claimant recovers proportionally. If multiple claims are filed within the same 90-day window, the CCB holds all payments until the period resolves to avoid a "race to the bond." This is why filing promptly is essential - and why you should verify the bond is still active before investing in the complaint process.

What the bond does not cover

Attorney fees - even if you win in Circuit Court, attorney costs are not recoverable from the bond
Claims against unlicensed contractors - the bond only applies to licensed contractors with active CCB records
Claims beyond the bond limit - if your damages exceed the bond amount, you must pursue the contractor personally for the difference
Claims settled at mediation but not enforced - a mediation settlement is a contract, not a bond claim; breaches require a new court action
Claims filed after the deadline - one year from substantial completion for residential work; missed deadlines typically cannot be reopened

When your dispute also involves a homeowner insurance claim

Many homeowners dealing with a contractor bond claim are simultaneously managing a homeowner insurance claim - for example, when a contractor caused damage during a renovation, or when they were hired to rebuild after a fire or storm. These are two separate processes that run in parallel. Understanding both protects you on both fronts.

Oregon insurance law: key deadlines your insurer must follow

45 days

Your insurer has 45 days to complete the investigation of your claim under Oregon Insurance Code. If they exceed this, they must provide a written explanation.

30 days

Your insurer has 30 days to respond to any inquiry - email, phone call, or text. Non-response is a violation you can report to Oregon DFR.

Source: Oregon Division of Financial Regulation (DFR) official webinar, co-presented with the Oregon CCB.

Oregon DFR Consumer Advocates - free resource

The Oregon Division of Financial Regulation has a team of consumer advocates who can intervene with your insurer free of charge. They have helped get claim denials overturned and improper fees refunded. Contact them if your insurer is unresponsive, if you disagree with the settlement, or if you're confused about any decision or communication.

Available Monday-Friday, 8am-5pm
Can get claim denials overturned in some cases
Contact DFR before hiring an attorney - it's free and they have direct leverage with insurers
Even if you have already hired an attorney, you still have the right to contact DFR

dfr.oregon.gov

Additional insurance coverage to know about

Replacement cost vs. actual cash value

Check your policy. Replacement cost coverage pays what it costs to replace the damaged item today. Actual cash value pays the depreciated value - often significantly less. This distinction affects how much you recover for damaged materials or possessions.

Building code upgrade coverage

When rebuilding after a covered loss, Oregon codes may require upgrades beyond the original construction. Standard policies may not cover this extra cost. Ask your insurer about a building code upgrade endorsement if you're rebuilding.

Additional living expenses (ALE)

If your home is uninhabitable during repairs, your policy likely covers lodging, meals, and extra costs above your normal expenses. Keep all receipts - your insurer may reimburse on an incurred basis.

House Bill 2982 - disaster total loss

If your home suffers a total loss in a governor-declared disaster, Oregon law (HB 2982) requires your insurer to pay 70% of your contents coverage limit without requiring you to itemize every lost item. You can pursue the remaining amount by itemizing.

Mortgage company and escrow: If your home has a mortgage, insurance payments for dwelling damage may be issued in both your name and your lender's name, and held in escrow until repairs are completed. Your lender may want to see the contractor's bid before releasing funds. This can affect your contractor payment timeline - factor it in when negotiating with your contractor.

Contractor scams after disasters - what to watch for

Post-disaster situations attract fraudulent contractors who target homeowners under stress. The CCB and DFR have documented consistent patterns. According to the Oregon CCB:

Red flags for post-disaster contractor scams

"I was just at your neighbor's house" - a common tactic to establish false credibility. If someone mentions a neighbor by name, call that neighbor directly to verify before proceeding.
Door-to-door solicitation with urgency - "I have leftover materials and can give you a discount if you decide now." Legitimate contractors allow you time to compare bids. If they pressure you to commit on the spot, walk away.
Request to pay in full upfront - reasonable deposits exist (10-30%), but full payment before any work begins is a major red flag.
Check made out to an individual, not a business - always pay to the business name on the CCB license, not to a person.
No CCB license or reluctance to provide it - every legitimate contractor will give you their CCB number without hesitation. Look it up before they set foot on your property.

The CCB recommends verifying the license number before scheduling any on-site meeting. Search at CCB Lookup or oregon.gov/ccb. Search by license number, not by name - spelling differences can return no results and make it look like the contractor isn't licensed when they are.

Frequently Asked Questions

You need two things: (1) an active CCB complaint, and (2) a certified court judgment or arbitration award that goes unpaid. File the complaint first, attempt mediation, then file in court if mediation fails. Once you have a certified judgment, submit it to the CCB. Payout takes at least 60 days.

It depends on license type. RGC: $25,000. RSC: $20,000. RLC: $15,000. CGC1: $80,000. CGC2: $25,000. CSC1: $55,000. These are total pool amounts - shared among all valid claimants, not per-person limits.

At least 60 days from the date the CCB receives your certified judgment. If multiple claims exist within the same 90-day window, payment may be held longer until all claims in that period are resolved.

The CCB holds all payments until claims filed within the same 90-day window are resolved, then distributes proportionally. If total valid claims exceed the bond limit, each claimant receives a proportional share. File promptly - the bond amount is finite.

The two processes run separately. For your insurance claim: Oregon law gives your insurer 45 days to complete the investigation and 30 days to respond to any inquiry. If they are unresponsive, contact Oregon DFR (dfr.oregon.gov) - their consumer advocates can intervene free of charge and have helped get claim denials overturned. Contact DFR before hiring an attorney.

Red flags: door-to-door solicitation with pressure to decide immediately, unusually low bids with "leftover materials", requests to pay in full upfront, checks made out to an individual rather than a business name, and contractors who claim to have worked at a neighbor's house. Always verify the CCB license number before allowing any contractor onto your property. Search by number, not name.

Last updated: June 2026. Information sourced from the Oregon CCB Consumer Protection page and the official Oregon CCB + DFR Homeowner Webinar. Not legal advice - consult a licensed Oregon attorney for advice specific to your situation.

Check the Bond First

Verify the contractor's bond is active before investing time in the complaint process.