What is a Contractor Bond?

Summary of what it means for me:

If your contractor is bonded and does not finish the job for a variety of reason such as going out of business, refusing to return to the project, etc, the bond is an insurance policy that will hire another contractor to finish the project up to the amount of the value of the bond. If your contractor is not bonded, and “leaves town with the money” then you are “out of luck” and most likely will have lost your money and be stuck with a partially finished project.

Forest Creek Household Solutions is bonded for $25,000.

Overview of Contractor Bonds in Oregon

A contractor bond in Oregon is a type of surety bond required for construction contractors to ensure compliance with state and local laws. It serves as a financial guarantee that contractors will adhere to licensing regulations and fulfill their contractual obligations.

Purpose of Contractor Bonds

• Financial Protection: The bond protects clients and the public from financial loss due to a contractor's failure to comply with laws or complete projects as agreed.

• Legal Requirement: Most contractors must obtain a bond to legally operate in Oregon, as mandated by the Oregon Construction Contractors Board (CCB).

Importance of Being Bonded

Being bonded enhances a contractor's credibility and assures clients of their commitment to quality work. If a contractor fails to meet the bond's terms, the surety company will cover valid claims up to the bond amount, but the contractor must reimburse the surety.