The Construction Connection - Contractor News, Notes & Legislation

Oregon Landscape Contractor Bond Increase to $20,000 – Effective January 1st, 2026

Posted By:

Beginning January 1, 2026, Oregon landscape contracting businesses are required to carry a standardized $20,000 surety bond under changes driven by Senate Bill 864.

This update affects both new applicants and currently licensed landscape contractors regulated by the Oregon Landscape Contractors Board (LCB).

If you perform landscape construction work in Oregon, this change directly impacts your licensing compliance.

Oregon Landscape Contractor Bond – Key Facts (2026 Update)

  • New Bond Amount: $20,000 for most landscape contractors
  • Probationary Bond Amount: $15,000
  • Effective Date: January 1, 2026
  • Required By: Oregon Landscape Contractors Board (LCB)
  • Legal Authority: Senate Bill 864
  • Who Must Carry It: All new applicants and existing licensed landscape contractors at renewal
  • Purpose: Protects consumers and ensures compliance with Oregon landscape contracting laws
  • Coverage: Guarantees compliance with statutes and financial obligations (not liability insurance)
  • Renewal: Continuous bond that must remain active to maintain license
  • Important Note: This requirement applies to LCB licenses and is separate from Oregon CCB contractor bond requirements

What Changed?

Under Senate Bill 864, Oregon moved away from prior tiered bonding requirements and implemented a uniform bond amount.

Effective January 1, 2026:

  • Most licensed landscape contracting businesses must maintain a $20,000 surety bond.  Probationary phase license holders must maintain a $15,000 bond

The Oregon Landscape Contractors Board has published updated bond guidance reflecting this change.

You can review the legislation here:

Oregon Senate Bill 864
https://olis.oregonlegislature.gov/liz/2025r1/Measures/Overview/SB864

You can review the LCB’s bond requirement guidance here:

https://www.oregon.gov/lcb/pages/insurance-certificate.aspx

Infographic explaining the 2026 increase of the standard Oregon Landscape Contractor Bond from tiered levels to a uniform $20,000 for standard businesses and $15,000 for probationary licenses, as mandated by Senate Bill 864. It lists updated requirements, reasons for the increase, coverage details, and compliance tips, and emphasizes its separation from CCB bond requirements.

Who Must Carry the $20,000 Bond?

The new $20,000 bond requirement applies to:

  • All standard Oregon landscape contracting businesses
  • New applicants applying for an LCB license
  • Existing license holders at renewal

The only exception is certain probationary phase license holders, who are required to carry a $15,000 bond.

If you are unsure of your status, verify directly with the Oregon Landscape Contractors Board before submitting your renewal.

Why Did Oregon Increase the Bond?

The purpose of standardizing the bond amount is to:

  • Increase consumer protection
  • Simplify compliance
  • Provide a uniform financial guarantee

Improve enforcement consistency

The surety bond protects the public — not the contractor. It ensures compliance with Oregon landscape contracting laws and provides a financial mechanism for certain claims or determinations.

What Does the Landscape Contractor Bond Cover?

The Oregon Landscape Contractor Bond guarantees that:

  • The contractor complies with Oregon statutes and LCB regulations
    • Financial obligations under applicable laws are met
    • Consumers have a level of financial recourse

It is not liability insurance and does not protect the contractor’s business assets.

Common Mistakes That Delay Approval

With new bond requirements, common compliance mistakes include:

  • Issuing the bond in the wrong business name
  • Listing the incorrect bond amount
  • Using the wrong obligee
  • Submitting an outdated bond for
  • Letting the bond lapse before renewal

Even administrative mistakes can interrupt license status.

Is This the Same as an Oregon CCB Bond?

No

Oregon has separate licensing authorities:

  • Oregon Landscape Contractors Board (LCB)
    • Oregon Construction Contractors Board (CCB)

The $20,000 requirement discussed here applies specifically to LCB-licensed landscape contracting businesses.

If you hold both registrations, you may have separate bond requirements.

Is the Bond Renewable?

Yes

The Oregon Landscape Contractor Bond is generally written as a continuous bond and must remain active for the duration of your license.

Most bonds renew annually through premium payments.

If the bond is cancelled or expires, your license may be impacted.

What Should Contractors Do Now?

If you are:

  • Applying for a new landscape contractor license
    • Renewing your current LCB license
    • Updating business information

You should confirm that your bond:

  • Meets the $20,000 requirement (or $15,000 if probationary)
    • Is issued correctly
    • Matches your registered business name
    • Remains active without interruption

Staying proactive prevents licensing delays.

Bottom Line

Effective January 1, 2026, Oregon landscape contractors must carry a $20,000 surety bond under Senate Bill 864, with limited probationary exceptions.

If you are licensed through the Oregon Landscape Contractors Board, compliance with this updated bond requirement is essential to maintain active status.


 

Frequently Asked Questions

What is the new Oregon landscape contractor bond amount for 2026?

Beginning January 1, 2026, most licensed Oregon landscape contracting businesses must carry a $20,000 surety bond. Probationary license holders must carry a $15,000 bond.

When did the $20,000 bond requirement take effect?

The new standardized bond requirement took effect January 1, 2026.

Does this apply to existing license holders?

Yes. The requirement applies to both new applicants and existing licensed landscape contractors at renewal.

Is the Oregon landscape contractor bond renewable?

Yes. The bond is typically written as a continuous bond and must remain active for the duration of the license.

Is this the same as an Oregon CCB contractor bond?

No. The $20,000 requirement applies to landscape contractors licensed by the Oregon Landscape Contractors Board (LCB), not the Construction Contractors Board (CCB).

 


Reviewed by: Jeremy Schaedler
Principal – Surety First Insurance Services

As principal at Surety First, Jeremy Schaedler has specialized in contractor license bonds and construction insurance since 2006. CA License: 0f06277

Disclaimer

This information is for general informational purposes only and does not constitute legal advice. Licensing and insurance requirements may change. Contractors should verify current requirements directly with their state regulatory agency or consult qualified legal counsel.

Why Contractors Choose Surety First

  • Specializing in contractor bonds and insurance since 2006 (20,000+ served)
  • A-rated surety markets
  • Fast approvals, often within minutes
  • Electronic CSLB filing
  • Serving contractors across CA, OR, WA, NV, AZ

Phone: 1-800-682-1552
Website: suretyfirst.com

Sources

Oregon Landscape Contractor Bond (SB 864)

This bill standardizes the bonding requirements for landscape contractors in Oregon effective January 1, 2026.

Jeremy Schaedler – Surety Bond & Contractor Insurance Expert

Jeremy founded Surety First Insurance Services (formerly Schaedler Insurance) shortly after graduating from the University of California, Los Angeles with a bachelor’s degree in Economics. Based in Northern California, the agency specializes in providing insurance and surety bond solutions for construction professionals throughout California, Oregon, Washington, Nevada and Arizona. With a strong focus on service and industry expertise, Jeremy has built Surety First into a trusted resource for contractors seeking reliable insurance and bonding support. Jeremy is happily married and the proud father of two young boys. Outside of work, he enjoys camping, fishing, and spending time with friends and family. CA Insurance License #0F06277



HAVE BONDING OR INSURANCE QUESTIONS?

Call us today at 1-800-682-1552 to speak with a licensed contractors insurance specialist.

Mon-Fri 8:00am-5:00pm

Or