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                                                                    EXHIBIT 10.7



FLUOR CORPORATION AND SUBSIDIARIES
        Management  Manual

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Section:      Compensation                                 Page:        136

Subject:     OFFICER AUTOMOBILE OR AUTOMOBILE ALLOWANCE    Effective:   07-01-98

Applies To:  Fluor Corporation and Selected Subsidiaries   Supersedes:  NEW

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GENERAL POLICY

The company may provide company automobiles or automobile allowances as
perquisites to attract, retain and reward officers of Fluor Corporation and
selected subsidiaries.

ELIGIBILITY

Executives who are officers of Fluor Corporation, Fluor Daniel, Inc. and Fluor
Constructors, Inc. and who are eligible to participate in the Fluor Corporation
and subsidiaries Executive Incentive Plan.

PROCEDURE

A.    An automobile or automobile allowance may be provided to company officers
      at the discretion of the company.

B.    Whether to provide company owned automobiles or automobile allowances will
      be based on applicable tax legislation, local competitive practices and at
      the convenience of the company.

C.    Officers provided an automobile or automobile allowance are expected to
      have a clean, well maintained, four-door vehicle suitable for transporting
      clients, business associates or company guest.

D.    The Chief Executive Officer of Fluor Corporation will be provided an
      automobile allowance of $1,900 per month. The President of Fluor
      Corporation $1,600 per month. Inside Directors of Fluor Corporation $1,400
      per month. The company will provide these officers with company provided
      automobile insurance, and reimbursement for automobile maintenance and
      business related gasoline expenditures.

E.    Designated Senior Executive Officers will receive $800 per month and all
      other eligible officers $600 per month. All automobile maintenance and
      gasoline expenses will be at the employee's expense.

G.    Officers, receiving an automobile allowance, will be provided automobile
      insurance coverage by the company for one automobile of the employee's
      choice.

H.    Officers outside of the United States may be provided an automobile in
      lieu of an automobile allowance when local customs and competitive
      practices dictate.