What license does an excavation contractor need in Oregon?

All excavation contractors in Oregon must be licensed with the Construction Contractors Board (CCB). Look for a valid CCB license number on their estimates, trucks, and website. You can verify any license at the CCB website (oregon.gov/ccb). Contractors without a CCB license are operating illegally and your project will not be covered by the CCB's dispute resolution process.

How much insurance should an excavation subcontractor carry?

At minimum, require $1 million general liability and $1 million auto liability. For commercial projects, $2 million general liability is standard. Workers' compensation insurance is required by Oregon law for any contractor with employees. Ask for a Certificate of Insurance naming you as additional insured before work begins.

Should I get multiple bids for excavation work?

Yes. Get at least three bids from licensed contractors. Compare scope of work carefully — the cheapest bid often excludes items that the higher bids include (erosion control, compaction testing, haul-off). Make sure all bids cover the same scope before comparing prices.

What are red flags when hiring an excavation contractor?

Major red flags include: no CCB license, no insurance certificates, unwillingness to provide references, requesting large upfront payments (over 10%), verbal-only agreements with no written contract, significantly lower bid than all competitors, and no permanent business address or phone number.

Who is responsible if a subcontractor damages utilities?

In Oregon, the excavating contractor is responsible for calling 811 (Oregon Utility Notification Center) at least 48 hours before digging. If utilities are marked and the contractor damages them anyway, the contractor is liable. If the contractor fails to call 811 at all, liability is clear. If utilities are incorrectly marked by the utility company, the utility may share liability.

How to Choose the Right Subcontractor for Site Work

Finding the Right Excavation Subcontractor

Hiring the wrong excavation subcontractor can derail a construction project faster than almost any other mistake. Site work happens first — before foundations, before framing, before anything else. If the excavation is done poorly, late, or over budget, everything that follows is affected.

Whether you are a general contractor looking for a reliable sub, a developer managing a project directly, or a homeowner building your first home, this guide covers what to look for, what to ask, and what to avoid when hiring an excavation subcontractor in Oregon.

At Cojo Excavation & Asphalt, we work as both a prime contractor and subcontractor on projects along the I-5 corridor. We have seen what good and bad subcontractor relationships look like from both sides.

The Non-Negotiables

Oregon CCB License

Every excavation contractor in Oregon must hold a current license from the Construction Contractors Board (CCB). This is not optional — it is state law. An unlicensed contractor cannot legally enter into a construction contract, and hiring one exposes you to significant risk:

No access to the CCB's dispute resolution process
No surety bond protection (licensed contractors must maintain a bond)
Your own insurance may not cover claims arising from unlicensed work
The contractor cannot pull permits, which means you must pull them yourself

How to verify: Ask for the CCB license number and check it at the CCB's online lookup tool. Verify the license is active, the correct business name matches, and there are no unresolved complaints.

Insurance Coverage

Require these minimum coverages before any equipment enters your site:

General liability: $1 million per occurrence, $2 million aggregate. This covers property damage, bodily injury to third parties, and completed operations claims. For commercial projects, require $2 million per occurrence.

Auto liability: $1 million combined single limit. Excavation involves heavy trucks and equipment moving on and off site. Auto claims are common and can be severe.

Workers' compensation: Required by Oregon law for any employer. Covers injuries to the contractor's employees. Without it, you as the property owner or GC could be liable for on-site injuries.

Umbrella/excess liability: $1-$5 million for large commercial projects. This provides additional coverage above the primary policy limits.

Request a Certificate of Insurance (COI) naming you (or your company) as additional insured. Have it sent directly from the contractor's insurance agent — not from the contractor, who could provide an altered or expired document.

Written Contract

Never start excavation work on a handshake agreement. A proper subcontract should include:

Scope of work with specific quantities and items
Price (lump sum or unit prices with estimated quantities)
Payment schedule and terms
Start date and completion date
Change order process
Insurance requirements
Indemnification provisions
Warranty terms
Cleanup and site restoration obligations

Evaluating Excavation Subcontractors

Equipment and Capabilities

The right equipment for the job matters enormously for efficiency and cost:

Ask what equipment they own versus rent. Contractors who own their primary equipment (excavators, dozers, dump trucks) have lower costs and are not dependent on rental availability. Rental-dependent contractors may face delays if equipment is not available.

Match equipment to project scale. A contractor with a fleet of large commercial equipment may not be cost-effective for a small residential project, and vice versa. A residential grading job does not need a D8 dozer, and a commercial site pad should not be graded with a mini excavator.

GPS machine control. For commercial and industrial projects, ask whether their equipment is GPS-capable. GPS grading is more accurate and faster, which translates to cost savings on your project.

Experience and References

Ask for references from similar projects. A contractor who excels at residential site work may struggle with a commercial project that requires coordinating with multiple other trades, meeting tighter specifications, and working on a compressed schedule.

Check completed project quality. If possible, visit a recently completed project. Look at the quality of grading (is it smooth and consistent?), erosion control (is it properly installed and maintained?), and site cleanliness.

Ask about their relationship with local jurisdictions. Experienced contractors know the building inspectors, understand local code interpretations, and can navigate the inspection process efficiently. This institutional knowledge saves time.

Industry reputation. Talk to other contractors, suppliers, and engineers who have worked with the excavation sub. The construction community in the Willamette Valley is small enough that reputation is well-known.

Financial Stability

A contractor who goes out of business mid-project creates an expensive problem. While you cannot fully assess a subcontractor's financial health, look for indicators:

How long have they been in business? Longevity suggests financial stability. CCB records show when the license was first issued.
Do they own their equipment? Equipment ownership represents significant capital investment and suggests a stable operation.
Do they ask for reasonable payment terms? Requesting standard progress payments (net 30, payment for completed work) is normal. Demanding large upfront deposits or cash-only payment is a red flag.
Are they bonded beyond the CCB minimum? Additional bonding capacity indicates financial qualification.

Comparing Bids

What Should Be in an Excavation Bid

A professional bid should itemize:

| Item | Description | |---|---| | Mobilization/demobilization | Moving equipment to and from site | | Clearing and grubbing | Removing vegetation and organic material | | Stripping and stockpiling topsoil | Removing and storing topsoil for later use | | Rough grading (cut and fill) | Earthwork with quantities in cubic yards | | Structural fill import (if needed) | Material cost, delivery, and placement | | Export hauling (if needed) | Removing excess material from site | | Compaction | Equipment and labor for soil compaction | | Compaction testing | Geotechnical testing (or allowance for it) | | Fine grading | Finish grading to specified tolerances | | Erosion control | Installation of BMP measures | | Utility trenching | If included in scope | | Dewatering | Pumping and water management if needed |

Apples-to-Apples Comparison

The most common mistake in comparing excavation bids is comparing prices without comparing scope. A $50,000 bid that includes erosion control, compaction testing, and haul-off is cheaper than a $40,000 bid that excludes all three.

Create a comparison matrix. List every line item from all bids in a spreadsheet. Mark which items each bid includes and excludes. Add excluded items at market rates to normalize the comparison.

Watch for unit price traps. Some contractors bid low on quantities they expect to change, then charge premium unit prices on change orders. Compare unit prices for potential overrun items, not just the total.

Clarify allowances. "Allowance for rock removal" means the contractor is not guaranteeing a price for rock — they are estimating. Ask what the unit price will be if rock is encountered beyond the allowance.

Red Flags That Should End the Conversation

No CCB license or expired license. Full stop. Do not proceed.
No insurance or refusal to provide COI. Unacceptable risk.
Cash-only pricing. This often indicates an unlicensed or tax-avoiding operation.
No written contract offered. Professional contractors provide contracts as standard practice.
Bid is dramatically lower than all others. The low bidder either made a mistake, plans to make it up on change orders, or is cutting corners (on insurance, on labor, on equipment maintenance).
Pressure to start immediately. Legitimate contractors have schedules. Urgency to start before you have signed a contract or pulled permits is a warning sign.
Cannot provide references. Even new businesses should have references from previous employment or related work.
No permanent business presence. A cell phone number and Gmail address with no office, yard, or website suggests an operation that may not be around when you need warranty work.

Working with Your Subcontractor for Success

Before Work Starts

Hold a pre-construction meeting to walk the site and review the plan
Confirm all permits are in hand
Verify 811 utility locates have been called and marks are visible
Establish communication protocols (who is the daily point of contact?)
Agree on inspection scheduling responsibilities
Review the erosion control plan and ensure materials are on site

During Construction

Visit the site regularly (daily for commercial projects)
Document progress with photos and notes
Address issues immediately rather than letting them compound
Process change orders in writing before the work is performed
Maintain a daily log of equipment on site, work performed, and weather conditions

After Completion

Perform a final walkthrough with the subcontractor
Verify grades with a spot survey
Ensure erosion control measures are in place and maintained
Process final payment only after all work is accepted and lien waivers are received

Learn more about Cojo's services and approach, or contact us to discuss your project.

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