Oregon lets an owner work on their own property without a contractor license, but not when the work is done in a business with intent to sell. Here is what ORS 701.010 allows, the three structure limit and the penalties.
Oregon lets a property owner do construction work on their own property without a contractor license, but the exemption has edges that surprise people. The law separates an owner who does the work from an owner who hires it out, it caps how many houses you can hire licensed contractors to work on in a year, and it never protects someone who builds to sell as a business. This guide walks through the owner provisions in ORS 701.010 so you know where the exemption helps and where it stops.
At a glance ORS 701.010(7) lets a person work on property they own, or work as the owner's employee, whether or not the owner lives there. The same subsection lets you work on your own residence even if you do not own it. None of these owner exemptions cover work done in an independent business with intent to sell the structure. An owner may hire licensed contractors for work on no more than three existing residential structures in the same calendar year (ORS 701.010(6)). Work on one project under $1,000 that is casual, minor or inconsequential is exempt, but not for anyone who advertises as a contractor (ORS 701.010(4)).
For the licensing basics that apply when you are not exempt, see our Oregon contractor license guide. This page covers only the owner path.
What ORS 701.010 exempts
ORS 701.010 is a list of people and projects the Oregon contractor licensing chapter does not reach. Several entries involve owners, and each carries its own condition. Think of them as separate doors, not one big homeowner pass.
| Subsection | Who it covers | Condition to watch |
|---|---|---|
| (4) | Anyone on one small project | Total contract price under $1,000 and the work is casual, minor or inconsequential |
| (5) | Owner who hires a licensed contractor | Not available if you do it in an independent business, for compensation, with intent to sell |
| (6) | Owner who hires licensed contractors | No more than three existing residential structures in the same calendar year |
| (7) | Owner, or the owner's employee, doing the work | Not available if done in an independent business with intent to sell |
The statute is written in dense legal language, so read the sections you rely on rather than a summary. The Oregon Legislature and the Construction Contractors Board (CCB) both publish the current text.
Doing the work yourself
Subsection (7) is the door most homeowners walk through. A person may work on property they own, or work as the owner's employee, whether or not the owner occupies it. A person may also work on their own residence even when they do not hold title, which covers a tenant who lives in and improves a home.
Notice what the subsection leaves out. It does not say you may hire friends, relatives or tradespeople to do the work for cash. An owner's employee is a genuine employee of the owner, not an unlicensed contractor handed a job. If someone else is performing construction work as their own business, they need their own license unless another exemption applies.
Hiring licensed contractors
Subsections (5) and (6) address the owner who does not swing the hammer. An owner who hires a licensed contractor does not need a license. The exemption has two limits:
- Intent to sell. It does not cover a person who, in an independent business and for compensation, has work done with intent to sell the structure.
- Three residential structures. An owner may hire one or more licensed contractors for work on no more than three existing residential structures in the same calendar year, and work that requires a building permit is excluded unless a residential general contractor performs or directs it.
The practical lesson is simple. If you hire out the permit work on a house, the contractor should be licensed with the right residential endorsement, not an unlicensed helper.
The intent to sell test
Every owner exemption in ORS 701.010 has the same escape hatch: it does not reach work done in an independent business with intent to sell the structure. This is the provision that catches speculative builders and house flippers.
The statute treats one fact as prima facie evidence of intent to sell. If you do not occupy the structure after the work is complete, the law presumes you intended to sell. A flipper who buys, renovates and lists a house is the textbook example.
Oregon courts have applied this reading. In Tandem Properties, LLC v. Construction Contractors Board (2002), an owner who developed a structure to sell rather than occupy was held to be acting in an independent business for compensation. An owner who plans to sell soon after finishing should assume the exemption is at risk and talk to the CCB or a lawyer first.
Small jobs under $1,000
Subsection (4) exempts work on one structure or project when the total contract price is under $1,000 and the work is casual, minor or inconsequential. The exemption does not apply to anyone who advertises as a contractor. The words "casual, minor or inconsequential" matter as much as the dollar figure, so a repeat pattern of small jobs is a poor fit for this rule.
What counts as a residential structure
The three structure limit in subsection (6) depends on the definition in ORS 701.005. A residential structure includes a site-built home, a structure with one or more dwelling units that is four stories or less above grade, and a condominium or other dwelling unit whose property interest is separate from the larger structure. Off-site modular homes, manufactured dwellings and floating homes are included, along with appurtenances to any of these.
The definition excludes mixed residential and nonresidential structures (with the condominium exception), transient lodging, residential schools and residence halls, correctional and detention facilities, nursing homes, hospitals and places built primarily for recreation. Those projects fall outside the residential owner rules and generally call for a licensed contractor.
Penalties for getting it wrong
Under ORS 701.992 the CCB may impose a civil penalty of not more than $5,000 for each offense for violating the contractor chapter or a board rule. Fees are set by the board or testing vendor and can change. Verify the current amount with the provider before you pay. Penalties are in addition to any other penalty provided by law.
Beyond fines, an unlicensed arrangement usually leaves a homeowner holding the risk. A contractor who should have been licensed may have no bond behind the work. If the work needs a permit, your local building department may ask who is responsible for it.
Owner or contractor: where a qualifier fits
The owner exemption is for people building or improving their own property. It does not help a company that sells construction work to the public. A business that contracts with customers needs a company license, and that license is tied to a responsible managing individual who meets the board's requirements.
Many small trade companies hit this wall when their licensed owner retires, leaves, or never held the license at all. A qualifying agent is a full-time W-2 employee who qualifies the company for its license. Read what a qualifying agent is and how the arrangement works, then see how to hire a qualifying agent or compare options on consultation packages. Jeremiah Jaskulski and Marshall Schofield built The Licensing Company around exactly this gap, and the same logic applies to the trade side: the Oregon plumbing license guide, the Oregon electrician license guide and the Oregon HVAC license guide explain what the individual trade licenses require.
Before you start
Run through this list before you break ground.
- Confirm the property is yours, or that the home is your residence.
- Decide honestly whether you will live in or keep the structure.
- Count how many residential structures you will hire licensed contractors for this calendar year.
- Ask your local building department what it requires for an owner permit.
- Verify any contractor's license in the CCB lookup before you sign.
Frequently Asked Questions
Can I build my own house in Oregon without a contractor license? The owner exemption in ORS 701.010(7) lets an owner work on their own property, but it does not cover work done in an independent business with intent to sell. Not living in the structure afterward is treated as prima facie evidence of that intent.
Can I hire friends to help me? Only if they are genuinely your employees. Someone who performs construction work as their own business needs their own license unless an exemption applies.
How many houses can I hire contractors for in a year? ORS 701.010(6) limits an owner to no more than three existing residential structures in a calendar year when hiring licensed contractors, and permit work must be performed or directed by a residential general contractor.
Does the $1,000 rule apply to a bathroom remodel? Probably not. The exemption is for one project under $1,000 that is casual, minor or inconsequential, and it is unavailable to anyone advertising as a contractor.
What is the penalty for unlicensed work? ORS 701.992 allows a CCB civil penalty of up to $5,000 per offense for violating the chapter, plus any other penalty provided by law.
Who can answer my specific situation? The CCB and a construction attorney. This guide explains the statute and is not legal advice.
Talk to Us About Your Oregon Business
If your company needs a licensed qualifier, call 615-219-2110 or start at Hire a Qualifying Agent. Browse the state by state licensing library to see where else you can grow.
Sources
- Oregon Revised Statutes 701.010, Exemptions from licensing, retrieved 2026-10-24
- Oregon Revised Statutes 701.005, Definitions, retrieved 2026-10-24
- Oregon Revised Statutes 701.992, Civil penalties, retrieved 2026-10-24
- Oregon Construction Contractors Board, retrieved 2026-10-24
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.