Construction Contractors

License Application –

Step-by-Step

For Sole Proprietorships

9/29/11

Select a business entity:

Sole proprietorship

A sole proprietorship exists when a single individual owns and operates his or her own business.

If this is your business structure, then your business entity is a sole proprietorship.

Create:

Sole proprietorship

There are no legal

steps necessary to

form or create a sole

proprietorship – one

individual person

doing business is a

sole proprietor.

Register:

Assumed Business Name

Unless the sole proprietor uses his or

her full legal name – such as “John Carl

Jones” or “John C. Jones” – the

individual must register any other name

– such as “Jones Construction” – with

the Oregon Corporation Division

Business Registry as an assumed

business name (ABN).

Complete:

Parts 1 and 2 of the Application (page 1A)

Determine:

Class of Independent Contractor

If the sole proprietor has no

employees, he or she is an EXEMPT

independent contractor.

If the sole proprietor has employees,

he or she is a NON-EXEMPT

independent contractor.

Workers’ Compensation

Insurance

If the sole proprietor is Exempt and

applies for a Residential endorsement,

he or she does not need workers’

compensation insurance.

If the sole proprietor is Non-Exempt or

applies for a Commercial endorsement,

he or she needs workers’ compensation

insurance.

Workers’ Compensation

Insurance: Non-Exempt

If the sole proprietor has

employees, the sole

proprietor is Non-Exempt

and needs standard

workers’ compensation

insurance.

Spouse and Children are Employees

If the spouse or

children of a sole

proprietor work for

the sole proprietor,

they are considered

employees.

Workers’ Compensation:

Commercial Endorsement

If the sole proprietor has no

employees, but holds a

commercial endorsement,

the sole proprietor needs

“Personal Election”

workers’ compensation

insurance.

(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.

Complete:

Part 3 of the Application (page 1B)

Appoint:

Responsible Managing Individual (RMI)

Every contractor must appoint and maintain at least one RMI.

For a sole proprietorship, either the sole proprietor 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.

Complete: Part 6 of the Application (page 7)

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

Complete: Parts 4 and 5 and of the Application (page 6)

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.

Complete:

Part 7 of the Application (page 8)

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 endorsements 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.

Complete:

Parts 8 and 9 of the Application (page 8)

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,

the sole proprietor must be

certified as a home inspector

or must employ a certified

home inspector.

Complete:

Parts 10 and 11 of the Application (page 9)

List:

Debts and Criminal Convictions

The law requires disclosure of the sole

proprietor’s 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 sole proprietor

that occurred no more than 5 years before

the application.

Complete:

Parts 12 and 13 of the Application (page 9)

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.

Complete:

Parts 14 and 15 of the Application

(page 10)

Complete:

Part 16 of the Application (page 11)

Sign and Date:

Application

Sign the application at Part 17 (page

12).

Sole proprietor signs on the first line

after the certification.

Print name of sole proprietor.

Insert date that application was

signed.

Complete: Part 17 of the Application (page 12)

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).

Complete:

Part 18 of the Application and (optional)

Credit Card Payment Section (page 13)

FINISHED!!!!

Following these step-by-step

instructions, you should have

completed all portions of the

CCB license application for

sole proprietors.

If you need help or have any

questions, contact the CCB at

(503) 378-4621.