Hiring an Owner-Operator to my fleet for the first time! Questions

Are you working for profit or just make him treated good?
Give him 20 take 80. Charge him for everything you can imagine. He will quit soon it's thru. Then you can find another one. This is only way you can grow up your business and be rich.

 

I was asked several times by people to be part of my contract with carriers but refused because they could do that themselves.

I would not do this unless you have a solid contract with a lawyer's involvement.

 

Why not have him get his own insurance or does he have that already.

Rates: the percentages your describing are for established Operations. Most startup & small Carriers will pay out a higher percentage.

Recall, the Owner Operator is bringing an infusion of Capitol to your Operation, (u know this) treat it that way....don't kill the golden goose.

Trailer rates, at this stage should be no charge. Revisit the idea of charging the O/O later.

How do you find loads: spot market or Contract?
Carrier/Owner Operator Contract...do u have one?
O/O trucks Maintenance log?
How will you handle his logs?
How do you make out your payroll statement?
Also, do u pay by direct deposit, checks are they typed or written?
Drug Testing Consortium...your using, whom pays.

 

Where would one find owner operators like that? Most of the ones I hear about are capital outflows. Broke as hell begging for a cash advance before they've even hauled the first load. I'd say get ready to be looked at as if you are a bank OP.

 

You add his truck to your insurance policy and charge him the amount it is for his truck. Same thing for plates. Take 10% of gross if fsc is included or 20% of load but give 100% of fsc. Charge him 5-7% for using the trailer. You pay trailer fuel and maintenance. Fuel, either he has his own card and turns in receipts but would be better if you provided fuel card and deducted amount from his settlements. Makes ifta filing easier. Don't charge for using a fuel card. Logs, he must hand them in to you for audit purposes. Have him make copies of whatever work gets done to his truck and hand those in for maintenance log for his truck. If he does it himself have some kind of form with company name, truck number, date, description of work done and make sure it gets done. That covers about all of it I think. It's one option of how I've thought about doing it.

 

Sigh, what your saying is too have an opinion as an Owner Operator is hard: replace a trucks suspension to your preference, replace differentials, tranny, rebuild engine, buying tires that were chosen for a specific purpose other than cost. Replacing worn parts by stating I need to look at the system for replacement not cut costs by replacing solely the worn part only to watch a similar part give out short time later to experience possible wrecker or lost oppurtunity. Doing this all as your increasing your equity, building liquidity, increasing lines of credit while watching your credit score steadily rise. humbling

 

I always wondered how other companies leased o/o on. Carrier I am with is the only thing I know. I heard other drivers talking and asked me who pays insurance.

I agree with others.. I guess its the cynical side of me. Like a good driver... a good O/O would not be asking around for companies to lease with..as if he is any good he should be content or know exactly where to go.

Where I am, I have an 80/20 split of the gross line haul plus 100% of fsc. Only insurance I pay is my own bobtail. Liability and cargo is paid by my carrier. I pay for my plate/registration ech year.. and recently I started paying the IFTA for my truck. He was paying it for over a year.. now I pay it.

I never felt comfortable enough to ask other guys how they are paid for fear I might be getting short changed and laughed at. But truth is I am financially comfortable with my current arrangement.

I imagine there are probably dozens of different lease contracts. As long as both parties are happy.. I dont think it really matters.

Hurst

 

If you lease someone on make sure your lease follows the rules of for lease trucks. Check with OOIDA, they know the rules, if you don't have it right it can come back and bite you. Your lease has to have the same items listed(disclosures) as the big boys.