Being Bonded

[FLORIN 21]

Hello all,

I've been looking thru the yellow pages and service page in the newspaper and it seems most pressure cleaning businesses are bonded. Is this a state requirement or is it a way to keep up with the competion but it is not required. If it is required is it costly? Thanks in advance for all your help.

[Larry B 55]

It is costly but it depends on what you are going to do on whether or not it is required. The state CCB board changed the rules on July 1 2005.

[FLORIN 21]

My plans are to to do mostly residential. Although I will try to get commercial accounts in the future to establish a steady non seasonal income source. In your experience does being bonded heavily persuade a possible customer to pick your company over the competition or is it just a extra protection for your company.

[John Doherty 126]

Bonding is mostly for interior work. It basically covers theft by employees of customers property. If you're not going inside you won't need it.

Try this, ask 5 people what being bonded means, as most people don't even know it tells you how important it is to have.

[Larry B 55]

The bond required in Oregon is a surety bond. It means that there is a pool of money to pay for an unfinished job and inconveniences to the homeowner should the contractor fault on the contract.

Florin give me a call or email if you want.

[John Doherty 126]

I forgot the caveat, every State is different but,

Bonding is mostly for interior work. It basically covers theft by employees of customers property. If you're not going inside you won't need it.

Try this, ask 5 people what being bonded means, as most people don't even know it tells you how important it is to have.

Surety bonds are a whole different animal, I'd give Larry a call.

[PLD 14]

I have a $10k bond. It costs about $80/yr above my liability. And I sell it to my customers.

Very few PW here are bonded. So, I explain how integrity and honest are important to me and I go the "extra" mile to protect my customers and bond my employees. I also sell the fact that I perform a background check and a credit check on every employee. Alot of sales is trust, and I sell the fact that buying PowerHouse is buying peach of mind.

[James 624]

I alway's wanted to be James Bond. Or the new Grey Bond instead of 00 Blond. " I wiill never DIE"

[Littlefield 65]

buying PowerHouse is buying peach of mind.

Phillip, sounds like a new slogan to me..;)

[Douglas Hicks 128]

Florin, the last time I talked to the CCB, I was told that to pressure wash real property (building, fences and other improvements to real property) you needed to be licenced as a contractor, have insurance, a bond and have workers' comp if you have employees. I was also told they were going to remove pressure washers from the CCB requirments. I was not given a time for the change. The theory is that if you are required to have a CCB #, & perform work w/o a CCB # you face possible fines of up to $1,000 per job or per day you work w/o a CCB #. I have turned in people working w/o a CCB #. Would like to know how many fines the CCB has issued? Of the 12 people I turned in, some of them multiple times, 1 person was fined $1,000 for working w/o the magic number. That complaint took almost a year to investigate. I had to send follow-up letters 3 or 4 times befor an investigator, Rich Rambo, was assigned to the case. He followed up because he had been a contractor in La Grande, and had lost jobs to the low-ballers who were not lisenced. Those complaints I made were complete w/ listed times, locations, and evidence of non-lisenced contractors. I also listed contact names and phone numbers of the businesses where the violations took place. The evidence was the labels on the hoods and the tags on the fire suppression systems. Most of the time, they will not even acknowledge the receipt of the letter or e-mail. When the CCB sent out a newletter to let us know about the fine job they were doin, and how they were protecting the citizens, the citations listed were mostly from the wet side of the State.

The purported reason for a contractor lisence is to protect the general public. As the CCB does not follow up on those who are not licensed, the real reason must be to generate revenue for the State of Oregon.

Douglas Hicks

General Fire Equipment Co of Eastern Oregon, Inc

CCB 78491

[FLORIN 21]

Thanks to all who have replied. Great information. I am in the getting my ducks in a row stage so I could start my business right. I will have my equipment, license, and insurance and my first stages of marketing by the end of this month. I will research more on having a CCB and what it involves so I can get bonded as well.

Larry, I thank you for the offer to call and email. I will definately do so. I will get as much info on my own as to not waste too much of your time first.

[FLORIN 21]

I contacted the CCB and they stated that if doing pressure washing only, a CCB# is not required but if I plan to do decks, strip and seal then that is a new ball game. thanks again for all who replied.