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 Residential General Contractor (RGC) Residential Specialty Contractor (RSC) Residential Limited Contractor (RLC) Residential Developer (RD) Scope of Work May supervise, arrange for, perform an unlimited number of building trades. May perform one or two unrelated building trades. May perform more trades if cost for labor and materials is $2,500, or less. 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. Owns property; arranges for work to be performed by licensed contractors; does not perform any construction work.
Select: Commercial Endorsement Classification Commercial Endorsement Classification Commercial General Contractor Level 1 (CGC-1) Commercial General Contractor Level 2 (CGC-2) Commercial Specialty Contractor Level 1 (CSC-1) Commercial Specialty Contractor Level 2 (CSC-2) Commercial Developer (CD) Scope of Work May supervise, arrange for, perform an unlimited number of building trades. May supervise, arrange for, perform an unlimited number of building trades. May perform one or two unrelated building trades. May perform one or two unrelated building trades. 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 General Contractor Level 1 (CGC-1) Commercial General Contractor Level 2 (CGC-2) Commercial Specialty Contractor Level 1 (CSC-1) Commercial Specialty Contractor Level 2 (CSC-2) Commercial Bond Insurance Policy $75,000 $2 million aggregate $20,000 $1 million aggregate $50,000 $1 million aggregate $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.