OAR 812-005-0210
Conditions to Require an Increased Bond, Letter of Credit or Cash Deposit
(1)
Under ORS 701.068 (Bonding requirements)(6), the agency may require a bond, letter of credit or cash deposit of up to five times the normally required amount, if it determines that a licensee or a current or previous owner, officer or responsible managing individual, as those terms are defined in division 2 of these rules, has:(a)
A history of unpaid final orders, arbitration awards or determinations consisting of two or more final orders, arbitration awards or determinations, which remain unpaid for longer than thirty (30) days following the date of issuance.(b)
Five or more complaints filed under ORS 701.140 (Types of allowable complaints) and processed under 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) or 701.146 (Resolution of complaints involving work on large commercial structures or certain small commercial structures) by five or more separate complainants within a one-year period from the date of filing of the most recent Dispute Resolution Services complaint.(c)
An unpaid construction debt as defined in ORS 701.005 (Definitions)(4) or unpaid judgment arising from construction activity that exceeds the amount of the bond, letter of credit or cash deposit.(d)
Board final orders, arbitration awards or determinations issued in favor of one or more complainants under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) where the amount that must be paid exceeds the amount of the residential bond.(e)
Board final orders or determinations issued in favor of one or more complainants under ORS 701.146 (Resolution of complaints involving work on large commercial structures or certain small commercial structures) where the amount that must be paid exceeds the amount of the commercial bond.(2)
The amount of the increased bond, letter of credit or cash deposit required under subsection (1)(a) of this rule must conform to the following schedule:(a)
If the sum of unpaid amounts on final orders, arbitration awards and determinations exceeds the licensee’s most recent bond, letter of credit or cash deposit by less than 50 percent, the agency may require a bond, letter of credit or cash deposit two times the amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors).(b)
If the sum of the unpaid final orders, arbitration awards and determinations exceeds the licensee’s most recent bond, letter of credit or cash deposit by 50 percent or more, but less than 100 percent, the agency may require a bond, letter of credit or cash deposit three times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors).(c)
If the sum of unpaid amounts on final orders, arbitration awards and determinations exceeds the licensee’s most recent bond, letter of credit or cash deposit by 100 percent or more, the agency may require a bond, letter of credit or cash deposit in the amount of five times the normal amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors).(d)
For purposes of this section, if a contractor has both residential and commercial bonds, the increased bond requirement will apply to both bonds, even if the unpaid amounts occurred only with respect to one of the two bonds.(3)
The amount of increased bond, letter of credit or cash deposit the agency may require under subsection (1)(b) of this rule will be based on the number of complaints filed and the time period that the complaints were received as follows:(a)
Two times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors) if five or more complaints are received in any twelve-month period.(b)
Three times the bond, letter of credit or cash deposit amount required under ORS701.081 or 701.084 (Commercial contractors) if five or more complaints are received in any six-month period.(c)
Five times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors) if five or more complaints are received in any three-month period.(d)
For purposes of this section, if a contractor has both residential and commercial bonds, the increased bond requirement will apply to both bonds, even if the unpaid amounts occurred only with respect to one of the two bonds.(4)
The amount of the increased bond, letter of credit or cash deposit required under subsection (1)(c) of this rule must conform to the following schedule:(a)
If the sum of the unpaid construction debt or judgment exceeds the licensee’s most recent bond, letter of credit or cash deposit by less than 50 percent, the agency may require a bond, letter of credit or cash deposit two times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors).(b)
If the sum of the unpaid construction debt or judgment exceeds the licensee’s most recent bond, letter of credit or cash deposit by 50 percent or more, but less than 100 percent, the agency may require a bond, letter of credit or cash deposit three times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors).(c)
If the sum of the unpaid construction debt or judgment exceeds the licensee’s most recent bond, letter of credit or cash deposit by 100 percent or more, the agency may require a bond, letter of credit or cash deposit five times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors).(d)
For purposes of this section, if a contractor has both residential and commercial bonds, the increased bond requirement will apply to both bonds, even if the unpaid amounts occurred only with respect to one of the two bonds.(5)
The amount of the increased bond, letter of credit or cash deposit required under subsection (1)(d) of this rule must conform to the following schedule:(a)
If the amount of the board final orders, arbitration awards or determinations exceeds the licensee’s most recent bond, letter of credit or cash deposit by less than 50 percent, the agency may require bonds, letter of credit or cash deposit two times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) and 701.084 (Commercial contractors).(b)
If the amount of the board final orders, arbitration awards or determinations exceeds the licensee’s most recent bond, letter of credit or cash deposit by 50 percent or more, but less than 100 percent, the agency may require bonds, letter of credit or cash deposit three times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) and 701.084 (Commercial contractors).(c)
If the amount of the board final orders, arbitrations or determinations exceeds the licensee’s most recent bond, letter of credit or cash deposit by 100 percent or more, the agency may require bonds, letter of credit or cash deposit five times the bond, letter of credit or cash deposit amount required under ORS 701.081 (Residential contractors) or 701.084 (Commercial contractors).(6)
Notwithstanding sections (2) through (5) of this rule, a business (including an individual person) licensed as a residential general contractor or residential specialty contractor that applies to be licensed as, or seeks to change its endorsement to, a residential limited contractor must file a residential bond, letter or credit or cash deposit in an amount of five times the amount of the residential limited contractor bond, namely $50,000, if the business or its previous owner, officer or responsible managing individual has:(a)
A history of unpaid final orders, arbitration awards or determinations consisting of two or more final orders, arbitration awards or determinations unpaid for longer than thirty (30) days following the date of issuance.(b)
Five or more complaints filed under ORS 701.140 (Types of allowable complaints) and processed under 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) by five or more separate complainants within a one-year period from the date of filing of the most recent Dispute Resolution Services complaint.(c)
An unpaid construction debt as defined in ORS 701.005 (Definitions)(4) that exceeds the amount of the residential bond, letter of credit or cash deposit previously held by the business.(d)
Board final orders, arbitration awards or determinations issued in favor of one or more complainants under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) where the amount that must be paid exceeds the amount of the residential bond previously held by the business.
Source:
Rule 812-005-0210 — Conditions to Require an Increased Bond, Letter of Credit or Cash Deposit, https://secure.sos.state.or.us/oard/view.action?ruleNumber=812-005-0210.