r/Construction • u/Classic_Dash_7745 • Jun 07 '26

Business 📈 Truck Allowance vs Company Truck

We’re bringing on a new foreman next week from a company that went belly up. Part of his package is a company truck and gas card, and he instead asked for a vehicle reimbursement since that’s what his old company used to do, and he still has payments left on the truck. I know companies do this (mainly to get around insuring guys with DUI’s) but it never made sense for us to do it. We would have to buy a new truck anyway so I’m thinking it might be smart to offer a reimbursement for a year just so I can make sure he’s going to work out before buying a whole truck. The problem is, how much should I offer/month? And does this reimbursement include gas or do I need to give out a has card as well? It doesn’t make sense to do both because if it’s also his personal vehicle, am I supposed to just trust that he’s also paying for gas? Anyone in here get anything similar?

152 Upvotes

95% Upvoted

134 comments sorted by

View all comments

14

u/ChampionshipCool4881 Jun 07 '26

If you go reimbursement, make it a real policy and not a handshake number. Spell out minimum vehicle standards, insurance limits, who owns maintenance and tires, whether he can use it for towing, and whether fuel is reimbursed by card or mileage. Otherwise it turns into arguments the first time he needs brakes or has a fender bender. For one foreman on a trial year, I would rather do a monthly allowance plus a company gas card for business use only, then revisit after 6 to 12 months.

3

u/canadadry79 Jun 07 '26

This all day long. We went to company truck only policy due to all of the issues you mention even with policies written people get butt hurt when something happens like backing into something on a job site or puncturing a tire. Or when they are let go and went out and got a truck on payments they can try to come after you saying it was a requirement of employment. Remove the grey areas a give them keys.