what makes a good owner/driver contract?

psm127_dad · Oct 8, 2010

Hello,

I do not know if this is appropriate or not... and I have searched back quite a way in this and the Newbie forum but found nothing quite like this question... so here goes.

I just bought 2 trucks and am wanting to get team drivers to run them. I currently team with my son Travis and am leased to FedEx CC. These trucks will be leased to FedEx as well, so I know I can not allow pets since these trucks will go into white glove.

What I do not know and am having a terrible time finding is this: What makes a good contract for both the owner and the drivers? I have talked to a few drivers who seem to not understand that the owner must make a profit so that the owner can keep up with a well maintained truck, make repairs, make truck payment & eventually replace trucks as they need to be replaced.

I am very happy to pay very well to get/keep good drivers, but simply do not know what would be a fair and reasonable split and what things I as an owner should/ought to pay verses what the driver should be expected to pay out of their split.

Any insight would be greatly appreciated!!

doug

cheri1122 · Oct 8, 2010

It seems pretty simple to me: ask yourself what you'd expect [as a driver] to get, and how much you'd be willing to do [by way of maintenance & repairs], then go from there.
The standard is pretty close to a 60/40 split, [owner keeps 40%], with all fuel surcharge to whomever pays for the fuel. Maintenance & repair are the responsibility of the owner to pay for, but can be done by driver, [whatever they're capable of doing], then reimbursed for costs.
What I do is turn in receipts for reimbursables once a month to cover what I've paid out of pocket: oil change, truck wash, minor repairs, fluids, etc.
Of course, the owner for whom I drive is scrupulously honest, and I don't hesitate to pay out of pocket - I know it will be repaid.
A relationship of mutual respect and trust is the cornerstone to satisfaction on both sides - good luck on creating such a relationship with your drivers, because there are some very good ones out there.

grnytoy · Oct 8, 2010

I am an owner/driver about to hire my first co-driver.

What is the going rate of pay for anew co-driver with experience?

Bruno · Oct 8, 2010

If your just signing on with FedEx Custom Critcal how are you getting into White Glove? There have been people that are proven contractors with FedEx that have been on a waiting list for months or years to get in to White Glove.

greg334 · Oct 8, 2010

Bruno said:
If your just signing on with FedEx Custom Critcal how are you getting into White Glove? There have been people that are proven contractors with FedEx that have been on a waiting list for months or years to get in to White Glove.

I agree Dave, this is a bit of BS (not saying the poster is wrong) that FedEx does this. The same goes with the people who are driving, they can step into a money making venture without proving if they are worthy of being the elite in the fleet.

TO answer the question - a lawyer who knows you and your business will make a good tight contract for you.

psm127_dad · Oct 8, 2010

Bruno said:
If your just signing on with FedEx Custom Critcal how are you getting into White Glove? There have been people that are proven contractors with FedEx that have been on a waiting list for months or years to get in to White Glove.

I did not say I was just signing on with FedEx CC. I said I just purchased 2 trucks. My Son and I, through very hard work, have been in White Glove for 3 years. We now have 4 trucks with the 2 we just bought.

Sorry for inadvertly misleading you.

doug

highway star · Oct 9, 2010

psm127_dad said:
I just bought 2 trucks and am wanting to get team drivers to run them. I currently team with my son Travis and am leased to FedEx CC. These trucks will be leased to FedEx as well, so I know I can not allow pets since these trucks will go into white glove.

Nothing to misunderstand here.

greg334 · Oct 9, 2010

psm127_dad said:
I did not say I was just signing on with FedEx CC. I said I just purchased 2 trucks. My Son and I, through very hard work, have been in White Glove for 3 years. We now have 4 trucks with the 2 we just bought.

Sorry for inadvertly misleading you.

doug

Nothing to misunderstand. The problem is with the trucks are going to be in whiteglove thing which assumes that the drivers don't have to qualify to be in W/G first but jump right in.

FedEx has a really bad habit of doing this and fleet owners should not be allowed to have a truck qualified but only the drivers. Once their "w/g" team qualifies and then leaves, the truck should be only surface until the new drivers have "proven" themselves to be worthy to go on the list to be w/g drivers.

You are not the first to do this, it is something of a common practice within the FedEx organization and for those who have worked hard to achieve the goal while following the rules, it craps all over them.