Retail Motor Law

Should I ask my customer’s to sign a document/authority if I am agreeing to do a contract repair?

Before we attempt to answer this question we should just remind ourselves what a ‘contract repair’ actually is.

A ‘Contract Repair usually describes a situation where two parties (generally Body Repairer and Insurance company) enter into an agreement (contract) to repair a vehicle for a fixed price.

These agreements are widely used in the Body Repair Industry and are usually entered into where there is a desire to keep a vehicle from being written off. In this way the insurer’s risk and the repairer’s reward are both capped at an agreed level.

Should a customer be asked to sign a document authorising the repairer to undertake a contract repair, does it really matter if an insurance company is paying?

Every situation has variables and ultimately the Repairer is best placed to make this decision. However we believe that there is a clear benefit from explaining what you propose to do to your customer’s vehicle. We would then suggest that it is professional to make a clear record,and ask the customer to sign confirming what has been discussed. This will ensure that everyone concerned in the repair process knows what has been agreed and there is a document to refer to.

So what should be in the agreement, we recommend that the following details are recorded.

• Customer Details

• Vehicle Details

• Damage, where it is and what it is, (any additional damage)

• What Damage is not going to be repaired

• Customer provided with a copy of the estimate/repair quotation

• Customer’s agreement to use certain parts etc. recycled parts, non genuine, reconditioned

• Customer’s authorisation to repair vehicle for fixed sum.

RML member’s should email  This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will forward a suggested agreement which you can change to suit your requirements.