Employee Tool Purchases

Department: Tool Department 

Topic: Tool Crib 

Process: Employee Tool Purchases 

Objective 

This will outline the process for employees to follow when purchasing personal tools, ensuring that the purchases are appropriate, cost-effective, and comply with company policies. This procedure aims to guide the approval, purchasing, and reimbursement processes for personal tools needed to work.  

Things to Consider 

All Tool purchase over $50.00 must be preapproved by the Tool Department prior to purchase.  Tool purchases under $50.00 must be reported to the Tool Department as soon as possible.  

This applies to all employees who wish to purchase personal tools for use in their role, including tools for construction, maintenance, office setups, or other job-related activities.  

Personal Tool Purchases 

• Personal Tools: Tools or equipment purchased by employees for personal use is needed to perform their job duties effectively.  These include hand tools, power tool, or safety gear. 

• Company Tools: Tools provided by the employer for use during job-related task, owned by the company. 

• Reimbursement: The process of compensating employees for tools purchased out-of-pocket for work-related purposes.  

• Approval Process: The procedure by which employees must obtain consent from the Tool Department or accounting before acquiring tools.  

Note: Tools purchased for the jobsite by the company. The company has ownership of these tools. Tools purchased for the employee to own must be paid back to the company if purchased through the company. This will need preapproval.   

Tool Identification and Need Assessment 

Identify the Need: 

• Employees must assess the tools required to perform their duties effectively.  

• Tools may include specialized equipment, safety gear, or general maintenance. 

Tool Criteria: 

• The tools should be job-related, necessary for completing assigned tasks, and meet the standards set by the company. 

• Personal tools should not duplicate tools already provided by the company (unless replacement or upgrade is required). 

Approval: 

• Employees must seek approval from the Tool Department or manager before purchasing any tools.  

• The Tool Department will assess whether the tool is essential and appropriate for the role.  

Tool Purchase Request Process 

• Personal purchases though the Company 

• The employee will have to call the Tool Department in regards of what is wanted or needed.  Personal purchase Tools will have to go through the Accounting Department.   There the employee will set up payment plan for paying the company back for the tool purchase.   All at once out of paycheck or weekly in smaller increments. 

• Request Form Submission: 

• The employee completes a Tool Purchase Request including: 

• Brief description of the tool. 

• Justification for the need. 

• Estimated cost of the tool.

• Suggested vendor or store.  

Review and Approval: 

• Tool Department or managers will review the request to ensure the tool is necessary, safe, and reasonable for the job. 

• If the purchase request is approved, the Tool Department will forward it to the accounting department or allow the employee to proceed with the purchase independently. 

• Procurement Guidelines: 

• If the company has preferred vendors or specific purchasing guidelines, the employee must follow these guidelines during the purchasing process. 

• Purchasing the Tool 

Vendor Selection: 

• The Tools department will consider price comparisons and opt for the most cost-effective solution.  

• The employee should select a reputable vendor or store offering tools that meet industry standards and safety requirements. 

Payment Method: 

• Employees may either pay for the tool out-of-pocket or, if access to company credit card use that if tool is for company.  

Receipts: 

• Employees must keep receipts and provide any additional documentation required for reimbursement (warranty details, product specifications). 

• Reimbursement Process – This process only happens when purchasing tools for the company and the employee did not have a company card and paid out of their own pock.  

Submission for Reimbursement: 

• Employees submit receipts to the accounting department or tool department. 

• Reimbursement Approval: 

• Upon verification, the accounting department processes the reimbursement, and the employee is compensated within the agreed-upon timeframe. 

Tool Maintenance and Use 

• While in the employee possession, the employee is responsible for maintaining the tool in good working condition. 

• Tool Ownership 

• Tools purchased for the job are owned by the Koester Construction. It will receive a number and be branded with the company’s logo.  

• Tools purchased for the employees are owned by the employee once payment is received to the company.