Construction Contracting Licenses: Frequently Asked Questions

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How is ProSchools’ program of study different from the competitors’?
ProSchools has been training professionals in real estate, insurance, securities, construction contracting, and mortgage lending for over 50 years. We are a true career school, licensed by the Oregon Department of Education. That credential gives us bragging rights. Our staff has the experience, talent and skills to develop the premier program of study, focused on ensuring you pass the state exam. You may hear competitors talk about video or CD-based programs that allege they are a faster method of studying, however, you’ll not find a BETTER way to study to pass the exam the FIRST TIME!

How long does the program of study take?
You are required to spend only 16 hours of study prior to taking the state exam. However, many students indicate they need to spend many more hours in order to build the confidence to take the state exam.

What kind of financial investment does it take to get my Oregon contractor license?
Initial costs to get your contractor license may include the following fees:

• Assumed Business Name (ABN) from Oregon Corporation Division $12-$17
• Attorney’s/CPA’s advice regarding business start-up $100-$2,000
• Surety Bond (cost depends on current creditworthiness) $75-$750
• General Liability Insurance annual premium (cost depends on type of work and length of field experience) $195-$2,000
• CCB license fee (2-year) $295
• CCB required 16-hours of education $150-$300
• CCB test fee (PSI) $106

What will the 16-hour course and test cover?
Topics include: the Oregon CCB (see below), taxes, recordkeeping, business practices, job-site safety, OR-OSHA requirements, building codes, environmental laws, project management, time management, scheduling, estimating, employer requirements and worker rights, contract law and lien law. Oregon statute requires these to be business- and law-related courses, not trade-related.

Should I get any additional books on the subject?
Sure, reading as much as you can about succeeding as a construction contractor is a wise strategy. ProSchools offers an array of books in our online bookstore.

Where are the test centers located?
PSI, the test administrator, has six convenient exam sites in Oregon:

Can I retake the test if I don’t pass the first time I take it?
Yes, however, each attempt costs a new exam fee.

How long do I have between completing my coursework, taking
the exam, and applying for the license?
For individuals that completed the training on or after October 1, 2006, the training and testing is valid for 24 months from the date the training was completed. Training and testing that is past the 24 months from the date of the completed training will not be considered for the purposes of fulfilling the requirements set forth in OAR 701.078 (1)(b)(A). Also keep in mind that each year the Oregon CCB puts out a new Construction Contractor Manual – you don’t want to be taking the test using an out-of-date manual since the test is open-book.

What is the Construction Contractors Board (CCB)?
The Oregon Construction Contractors Board is a state agency whose purpose is to protect consumers by regulating all contractors in the state. Its mission is to safeguard consumer rights as related to contracted property improvements, while promoting a fair and competitive environment in the construction industry. For consumers, the CCB provides free publications, contractor licensing and claims history information, and methods for resolving contractor disputes.

Who Needs to Become Licensed with the Oregon CCB?
You’re required to become licensed if you are engaged, for compensation, in any construction activity involving improvements to real estate. This includes partnerships, corporations, limited liability companies, limited liability partnerships, and self-employed individuals (whether working by the hour, week, job or “cost-plus,” and whether by written contract or oral agreement).

A license is required for any individual or business entity which advertises, offers, bids or arranges to do, or actually does any construction, alteration, remodeling, or repair involving residential, commercial, industrial, or public works improvements. Inspection, tree service, power washing, chimney sweeps and developers who build houses with the intent to sell, are also required to become licensed.

Plumbers and electricians require a license with the Building Codes Division (BCD) and a business license with the CCB.

Who Does NOT Need to Become Licensed with the CCB?
The following categories of construction work are exempt from licensing, according to ORS 701.010.

• Work on your own personal property (property which is not real estate)
• Work within the boundaries of a federal site or reservation.
• Supply or delivery of materials, but not installation.
• Owners or residents who contract for work and do not intend to sell
  the structure.
• Owner-builders who are not building the structure for resale.
• Licensed engineers, architects, water well contractors, sewage system installers, property managers, and landscaping businesses, when operating within the scope of those licenses.
• Licensees/real estate managers/agents acting within the scope of their license.
• Employees of property owners and licensed contractors.
• Mobile home manufacturers
• Moving of modular structures
• Commercial lending institutions
• Units of government other than schools that sell student-built
  residential structures.

What if I’m registered or licensed as a contractor in another state?
Anyone wishing to be licensed as a contractor in Oregon must take the 16-hour course and pass the CCB exam. There is no exam waiver for contractors registered or licensed in another state.

How many people in a new business entity have to either complete the education requirement (class and test) or prove they are exempt from it?
One. This person is called the responsible managing individual (RMI).

What could go wrong in the CCB licensing process?
The CCB keeps records of what problems contractors have experienced in the past while getting licenses and renewals processed. Their “Top 10” list includes:

1. Fail to send the CCB an original bond agreement. (A photocopy is
   not adequate.)
2. Neglect to give the CCB a certificate of insurance.
3. Forget to sign the application or renewal form.
4. Leave the independent contractor certification section blank.
5. Leave out some of the important parts of the application.
6. Ignore the directions on the application.
7. Are unaware of the four types of business entities and their requirements
   to register.
8. Forget to notify the board of an address change so renewal forms and CCB correspondence never get to them.
9. Lose the renewal form.
10. Forget to make changes on the renewal form.

Don’t have your license delayed because of careless errors. Check over your application form using the CCB checklist!

What license do I need to have a landscaping business in Oregon?
To operate a landscaping business in Oregon, you need to contact a different agency, NOT the CCB. Oregon law requires anyone in the state of Oregon who advertises, operates as, or uses the title of a landscape contractor or landscape business, to be licensed with the Landscape Contractors Board (LCB). There are two licenses required with the LCB: a landscape contractor’s license and a landscaping business license.

A landscape contractor is defined as someone who plans and installs lawns, shrubs, vines, trees and other decorative vegetation including the preparation of the property on which the vegetation is to be installed. A landscape contractor may also construct water features, drainage and irrigation systems, plan and install fences, decks, walkways and retaining walls in conjunction with landscape projects.