Licensing and Endorsement Requirements -...

Licensing and Endorsement Requirements

2007 Legislation

Eff i DEffective Dates

Beginning July 1, 2008, contractors renewing or obtaining a CCB license must g gselect at least one license endorsement.

All contractors, including 4 year renewals, will need to have an endorsed license by will need to have an endorsed license by June 30, 2010.

E d Cl ifi iEndorsement = Classification

A major change in Oregon’s 2007 construction contractor’s law is the creation of license “endorsements.”

Contractors will continue to hold only ONEli b h h license, but may have more than one classification, or endorsement.

Th t t l f l ifi ti There are a total of 9 classifications, or endorsements – 4 residential and 5 commercial.

E d TEndorsement Types

Contractor licenses will be endorsed as follows:

Residential contractorResidential contractor

Commercial contractor

R id i l CResidential Contractors

May perform work on:

Residential Structures

Small Commercial StructuresStructures

Residential StructuresResidential Structures

Site-built homeSite built homeStructure with one or more dwelling units, four stories or less above gradefour stories or less above gradeCondominium, rental or other residential unit part of a larger structure, separate unit part of a larger structure, separate property interestModular homeModular homeManufactured dwellingFloating homeFloating home

Small Commercial StructureSmall Commercial Structure

• Non-residential structure, area less than or equal to 10,000 square feet; not more than 20 feet highg

• Non-residential unit part of larger structure, area less than or equal to 12,000 than or equal to 12,000 square feet; not more than 20 feet high

• Non residential structure • Non-residential structure, any size, costs less than $250,000 for contract price of constructionof construction

Not Residential StructuresNot Residential Structures

Structure that contains both residential and non-residential unitsTransient lodgingResidential school or residence hallResidential school or residence hallState or local correctional facilityYouth correction facilityYouth care center operated by county juvenile departmentDetention facilityDetention facilityNursing home or hospitalPlace constructed for recreational activities

C i l CCommercial Contractors

May perform work on:

Small commercial structures

Large commercial Large commercial structures

S ll C i l SSmall Commercial Structure

Non-residential structure, area less than or equal to 10,000 square feet; not 10,000 square feet; not more than 20 feet highNon-residential unit part of larger structure area less larger structure, area less than or equal to 12,000 square feet; not more than 20 feet high20 feet highNon-residential structure, any size, costs less than $ f t t i $250,000 for contract price of construction

L C i l SLarge Commercial Structure

Means a structure Means a structure that is not a residential residential structure or small commercial commercial structure.

D l E dDual Endorsement

Contractor may elect to be endorsed as both a residential contractor and a commercial contractor, in order to work on:

Residential structures;

Small commercial structures; andSmall commercial structures; and

Large commercial structures.

Residential ContractorsResidential Contractors

–Residential General Contractor (RGC)

–Residential Specialty Contractor (RSC)

–Residential Limited Contractor (RLC)

–Residential Developer (RD)Residential Developer (RD)

General ContractorGeneral Contractor

• A contractor that supervises or

f b performs any number of unrelated business trades or crafts trades or crafts (“prime contractor”)

Specialty ContractorSpecialty Contractor

• A contractor who performs two or fewer

l t d b ildi t d unrelated building trades or crafts (“subcontractor”)

• A contractor who performs an unlimited number of building trades number of building trades or crafts where single job is $2,500, or less

R id i l Li i d CResidential Limited Contractor

A residential limited contractor can perform any number of unrelated business trades or crafts but may not:but may not:

Perform work as a contractor exceeding $40 000 in Perform work as a contractor exceeding $40,000 in gross annual income; or

i f kEnter into contracts to perform work as a contractor in excess of $5,000.

R id i l D lResidential Developer

A residential developer:

Shall act only in association with general contractors, one or more of whom must have sole responsibility for o erseeing all phases of the residential for overseeing all phases of the residential construction activity; and

May not perform any construction work on the property.

“Responsible Managing Individual” Responsible Managing Individual (RMI)

Every residential contractor must Every residential contractor must appoint and maintain at least one RMI.

The RMI must exercise management gand supervisory authority over the construction activities of the business by meaningfully participating in:meaningfully participating in:

the administration of the construction contracts; or

the administration of the day-to-day business operations.

Residential Contractors: i i d i d iPrerequisite Education and Testing

Endorsement Prerequisite Prerequisite Endorsement (Classification)

Prerequisite Education by RMI

Prerequisite Testing

Residential General 16 hours Pass testResidential General Contractor (RGC)

16 hours Pass test

Residential Specialty 16 hours Pass testResidential Specialty Contractor (RSC)

16 hours Pass test

Residential 16 hours Pass testResidential

Limited Contractor (RLC)

16 hours Pass test

Residential Developer (RD)

None None

Residential Contractors:d d Bond and Insurance

Endorsement Bond Insurance (Classification) Requirement Requirement

Residential General C (RGC)

$20,000 $500,000 per Contractor (RGC) occurrence

Residential Specialty Contractor (RSC)

$15,000 $300,000 per occurrenceContractor (RSC) occurrence

Residential

Limited Contractor

$10,000 $100,000 per occurrenceLimited Contractor

(RLC)

occurrence

Residential Developer (RD)

$20,000 $500,000 per occurrence(RD) occurrence

Commercial ContractorsCommercial Contractors

– Commercial General Contractor, Level 1 Commercial General Contractor, Level 1 (CGC-1)

– Commercial General Contractor, Level 2 ,(CGC-2)

– Commercial Specialty Contractor, Level 1 p y ,(CSC-1)

– Commercial Specialty Contractor, Level 2 (CSC-2)

– Commercial Developer (CD)

General ContractorGeneral Contractor

• A contractor that supervises or pperforms any number of unrelated business trades or crafts (“prime contractor”)

Specialty ContractorSpecialty Contractor

• A contractor who • A contractor who performs only two or fewer unrelated building gtrades or crafts (“subcontractor”)

L l d L l Level 1 and Level 2

Once a commercial contractor has selected the endorsement as a General Contractor or a Specialty Contractor, they must also select Level Specialty Contractor, they must also select Level 1 or Level 2There is NO DISTINCTIONNO DISTINCTION in the type of work that may be performed under a Level 1 or Level 2 that may be performed under a Level 1 or Level 2 endorsementIt is assumed that contractors working on larger g gjobs requiring more financial protection may select the Level 1 endorsement

C i l D lCommercial Developer

A commercial developer:

Shall act only in association with general contractors, one or more of whom must have sole responsibility for o erseeing all phases of the commercial for overseeing all phases of the commercial construction activity; and

May not perform any construction work on the property.

“Responsible Managing Individual” Responsible Managing Individual (RMI)

Every residential contractor must Every residential contractor must appoint and maintain at least one RMI.

The RMI must exercise management gand supervisory authority over the construction activities of the business by meaningfully participating in:meaningfully participating in:

the administration of the construction contracts; or

the administration of the day-to-day business operations.

Commercial Contractors:Prerequisite Education and TestingPrerequisite Education and Testing

Endorsement (Cl ifi i )

Prerequisite Ed i b RMI

Prerequisite T i(Classification) Education by RMI Testing

Commercial General Contractor Level 1 (CGC-1)

16 hours Pass Test


16 hours Pass Test

Commercial Specialty Contractor Level 1 (CSC-1)

16 hours Pass Test


16 hours Pass Test

i l l ( )Commercial Developer (CD) None None

Commercial Contractors: i i iPrerequisite Experience

• With the exception of a Commercial Developer (CD) a commercial contractor Developer (CD), a commercial contractor will have to self-certify when they apply for and renew their license that they or for and renew their license that they or their “key employees” have a minimum amount of construction experience to amount of construction experience to qualify for a commercial license.

Commercial Contractors: Prerequisite ExperiencePrerequisite Experience

Endorsement (Cl ifi ti )

Prerequisite Experience by K E l(Classification) Key Employee


Eight (8) yearsContractor Level 1 (CGC-1)


Four (4) years


Eight (8) years


Four (4) years

Commercial Developer (CD) None

“Key Employee”Key Employee

• An employee or An employee or owner of a contractor:– Corporate officer

– Manager

– Superintendent

– Foreperson

– Lead person

A th l – Any other employee identified by rule

Construction Experience Required f lof Key Employees

• Experience as:Experience as:– Licensed contractor

– Journeymany

– Foreperson

– Supervisor

– Any other employee engaged in construction work for construction work for a licensed contractor

Substitution for ExperienceSubstitution for Experience

The following may g ysubstitute:

Apprenticeship program (up to pp p p g ( p3 yrs.)Bachelor’s degree in construction field (up to 3 yrs.)Bachelor’s or master’s degree in business, finance, economics (up to 2 yrs.)Associate’s degree in Associate’s degree in construction or building management (up to 1 yr.)

Commercial Contractors:Bond and InsuranceBond and Insurance

Endorsement (Cl ifi i )

Bond R i

Insurance R i(Classification) Requirement Requirement


$75,000 $2 million aggregate





C i l S i lt $ $ Commercial Specialty Contractor Level 2 (CSC-2)

$20,000 $500,000 per occurrence

Commercial Developer (CD) $20 000 $500 000 per occurrenceCommercial Developer (CD) $20,000 $500,000 per occurrence

Continuing EducationContinuing Education

Continuing Education: Residential CContractors

E t bli h d b CCB lEstablished by CCB rule

M i l d t i i i (1) t ti May include training in (1) construction means and methods, (2) compliance with state building codes, and (3) business practices, (3) p

Does not apply to Residential Developerpp y p

Completion first required no earlier than 1/1/2010 and no later than 1/1/2014, as established by rule

Continuing Education: Commercial CContractors

Commercial General Contractor, Level 1 (CGCCommercial General Contractor, Level 1 (CGC--1):1):Commercial General Contractor, Level 1 (CGCCommercial General Contractor, Level 1 (CGC 1):1):– 4 or fewer key employees: annually must complete

hours of education equal to number of key employees times eight (8)

– 5 or more key employees: annually must complete 40 hours of educationhours of education

Commercial General Contractor, Level 2 (CGCCommercial General Contractor, Level 2 (CGC--2):2):Commercial General Contractor, Level 2 (CGCCommercial General Contractor, Level 2 (CGC 2):2):– Any number of key employees: annually must

complete 16 hours of education

Commercial Specialty Contractor, Level 1 (CSCCommercial Specialty Contractor, Level 1 (CSC--1):1):– 4 or fewer key employees: annually must complete

hours of education equal to number of key employees times eight (8)

k l ll l – 5 or more key employees: annually must complete 40 hours of education

Commercial Specialty Contractor, Level 2 (CSCCommercial Specialty Contractor, Level 2 (CSC--2):2):– Any number of key employees: annually must

complete 16 hours of educationp

Commercial Developer (CD): Commercial Developer (CD): N ti i d ti i t– No continuing education requirement

Law effective 7/1/20107/ /

Continuing Education Reporting: C i l CCommercial Contractors

Contractors applying for renewal shall Contractors applying for renewal shall certify the number of CE hours completed during the preceding licensing periodg p g g pContractors must maintain records of CEThe law does not apply to plumbing or The law does not apply to plumbing or electrical contractors or persons installing boilers or pressure vesselspThe law does not apply to contractors exempted by CCB rulep y

Law Violations Relating to Law Violations Relating to Endorsements

Beginning July 1, 2010, it will be a violation of the law will be a violation of the law for a person to work, bid or advertise to work without the advertise to work without the proper form of endorsement for their licensefor their license

THE ENDTHE END

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