Everyone who wants to start a business needs materials. Those materials need to be shipped in some way. There are many different ways to ship something: by ship, by plane and by trains. One of the oldest ways of transporting something. With transporting large amounts of material, it is often a good idea to make sure the trucker owner and operator both come to an agreement for how one will be paid. Driving long distances can be a difficult job, so it’s always good to know what sort of job you’ll be doing. This is where trucker contracts come into play: A trucking contract is the document that draws up the agreement between the distributor of the goods and the professional driver transporting them and can be drawn up with different specifications, based on the job deadline, material transported and outcome. Here are a few contracts and how they work:
There are two main types of contracts drawn up in owner-operator agreements: outcome-oriented contracts and behavior-oriented contracts. Each contract is different and will usually be adjusted based on the job, so they should be assessed before signing.
Outcome-oriented contracts are also known as performance based contracts, in which payment is based on how successful the delivery of the materials was. The outcome-oriented contract emphasizes the end result of the delivery, rather the process of getting to the destination. This type of contract also usually provide incentives for successful performance and penalties to non-performance.
Behavior-oriented contracts are contracts that similar to a commission based wage. The shipper will compensate it’s deliverers based on the number of hauls or shipments made. Usually, the payments in this sort of contract are considered “closed book”, which will not disclose the profit margins made by the trucker or truck owner.
These are just a few different types of trucker contracts. If you’re looking to work with a passionate material sourcing or construction material delivery service, please give Nickel Rock a call at 210–468–0290 for a quote. We don’t have a standard quote, because we make agreements based on the job.