MOTOR REPAIRER AGREEMENT - Hollard Motor... · Web viewshall mean those Auto Body Repairers who are black owned, empowered or influenced as defined in the Financial Sector Charter;

MOTOR REPAIRER AGREEMENT

motor repairer agreement

AGREEMENT

MADE AND ENTERED INTO BY AND BETWEEN

REGENT INSURANCE COMPANY LIMITED

(Hereinafter referred to as the “COMPANY”)

and

Motor Repairer:

Company Registration Number:

(Hereinafter referred to as the “Contractor”)

for the

REPAIR OF ACCIDENT DAMAGED VEHICLES

WHEREBY THE PARTIES AGREE AS FOLLOWS:-

1. INTERPRETATION

1.1 In this agreement and in the annexures to this agreement:-

1.1.1 Clause headings are for convenience and are not to be used in its interpretation;

1.1.2 unless the context indicates a contrary intention an expression which denotes:

1.1.2.1 any gender includes the other gender;

1.1.2.2 a natural person includes a juristic person and vice versa;

1.1.2.3 the singular includes the plural and vice versa.

2. DEFINITIONS:

In this agreement the following expressions bear the meanings assigned to them below and cognate expressions bear corresponding meanings:-

2.1. “Agreement” shall mean this document together with all of its annexures, as amended from time to time;

2.2. BLACK OWNED, EMPOWERED OR INFLUENCED SUPPLIER shall mean those Auto Body Repairers who are black owned, empowered or influenced as defined in the Financial Sector Charter;

2.3. "Business day" shall mean any day other than a Saturday, Sunday or official public holiday in the Republic of South Africa;

2.4. "Business Hours" shall mean those hours between 08:00 to 17:00 Monday to Friday on any Business Day;.

2.5. “Commencement Date" shall mean date of signature of this agreement.

2.6. “Contractor” shall mean____________________ duly registered in terms of Company Laws of South Africa, with registration number and trading as_____________________

2.7. "Insured"shall mean Regent Insurance Company Limited’s insured in terms of a current and paid up policy of insurance

2.8. “Month” shall mean a calendar month

2.9. “Policy Holder” shall mean Regents insured Limited’s insured in terms of a current and paid up policy of insurance

2.10. Original Equipment Manufacturers [OEM] shall mean the original manufacturer of spare parts or official distributor of spares within the borders of Southern Africa

2.11. “Regent” shall mean Regent Insurance Company Limited a public Company duly registered in terms of the Company Laws of South Africa, with registration number: and trading as a registered domestic short term Insurance Company

2.12. REPAIR TYPES shall mean:

2.12.1. Non Structural Repairs (NSR) – Cosmetic Repairs, Stone Chips, Scratches, Lenses and Glass, Beadings, Grills, Trim, Bolt on / Bolt off part Replacement for Front Fenders, Bonnets, Front Bumpers, Front Lower Valances.

2.12.2. Advanced Structural Repairs (ASR) – Replacement of Bolted Parts, Bumpers, Front inner Tray Extensions, Front Fenders, Exhaust Systems, Bonnets, Outer Sill Panels, Cross Members, Doors, Condensers, Radiators, Front Panels, Steering Racks & Control Arms, Rear Panels. Repairs of Outer Panels, Welded Panels, Minor Dents, Any other Panels including Panels damaged by hail.

2.12.3. Major Structural Repairs (MSR) – Replacement of Boot Floors, Inner Sills, Rear Fenders, Body Shells, Inner Panels, Passenger Compartments, Floor Panels, Shock Turrets, Minor Engine Parts, Inner Door Sills, A/B/C Post Pillars, Engine/Gearbox/Rear Axle, Classic Legs. Repairs to Major components, Body Shells, Floor Panels, Engine & Suspension, including Burnt and Overturned Vehicles.

2.12.4. MSR Factory Approved Repairs (Vehicles not older than 3 years and still under Warranty) – All repairs deemed to influence the warranties of the Vehicle as per the guidelines set out by the appropriate Factory in its Warranty Agreements. No Factory Approved Repairs will be allowed to any Contractor unless the Contractor is in possession of a valid and current Approval Certificate and this Certificate has been supplied to the Company for their records.

2.13. "Signature date "shall mean the date of signature of this agreement by the signatory which signs it last;

2.14. "VAT" ‑ shall mean Value Added Tax payable in terms of the Value Added Tax Act of 1991;

2.15. any reference to any statute, regulation or other legislation shall be a reference to that statute, regulation or other legislation as at the signature date, and as amended or substituted from time to time;

2.16. if any provision in a definition is a substantive provision conferring a right or imposing an obligation on any party then, notwithstanding that it is only in a definition, effect shall be given to that provision as if it were a substantive provision in the body of this agreement;

2.17. where any term is defined within a particular clause other than this 2, that term shall bear the meaning ascribed to it in that clause wherever it is used in this agreement;

2.18. where any number of days is to be calculated from a particular day, such number shall be calculated as excluding such particular day and commencing on the next day. If the last day of such number so calculated falls on a day which is not a business day, the last day shall be deemed to be the next succeeding day which is a business day;

2.19. any reference to days (other than a reference to business days), months or years shall be a reference to calendar days, months or years, as the case may be;

2.20. the use of the word "including" followed by a specific example/s shall not be construed as limiting the meaning of the general wording preceding it and the eiusdem generis rule shall not be applied in the interpretation of such general wording or such specific example/s.

2.21. The terms of this agreement having been negotiated, the contra proferentem rule shall not be applied in the interpretation of this agreement.

3. RECORDALS

WHEREAS

3.1 The parties are desirous of entering into an agreement in terms of which the Contractor will provide services for the repair of accident-damaged vehicles insured by the Company.

3.2 The Company indemnifies Policyholders by repair,.

3.3 The Contractor undertakes to carry out such repairs in a professional manner and to the highest possible standards so as to satisfy our obligations to our Policyholder.

4. DURATION AND TERMINATION

4.1. This agreement shall, notwithstanding the date of signature hereof, be deemed to commence on the commencement date and shall subsist, subject to the provisions of clause 4.6 below, for the duration of the repair being undertaken by the contractor or the termination of this at an earlier date in accordance with clause 4.2, and 4.3;

4.2. This agreement may be terminated for any reason and at any time prior to the repair referred to in clause 3.1 above being effected or completed by either party giving 2 (two) days written notice of its intention to terminate this agreement and the reasons therefore;

4.3. Subject to the provisions of this clause, should either party allege that the other party is in a non-material breach or is in default of the performance of any of its obligations in terms of this Agreement, the aggrieved party shall notify the Group Procurement Department of the default in writing specifying the nature thereof. Should either party be in breach after notice as above, and remain in breach for a period of 5 (five) days after written notice to rectify such breach has been delivered, the aggrieved party shall be entitled forthwith to cancel this Agreement.

4.4. Notwithstanding any other provision contained herein, the Company shall be entitled to terminate this agreement immediately, and without notice, on one or more of the following events without prejudice to any further rights or claims it may have whether for damages, specific performance or otherwise:

4.4.1. The Contractor being declared insolvent or suffering a judgment to be granted or entered against him in or by any court of law, and/or

4.4.2. The Contractor being convicted of an offence involving dishonesty; and/or the Contractor exceeding his authority in any manner whatsoever which results in a material loss of any nature whatsoever being occasioned to the Company; and/or

4.4.3. The Contractor having participated in conduct, which is likely to bring the Company and/or himself into disrepute. This is irrespective of whether the conduct took place prior to the commencement of this agreement or not; and/or

4.4.4. The Company having reasonable suspicion that the Contractor is abusing the system to inflate claims by any means. The onus will be on the Contractor to prove unreasonableness; and/or

4.4.5. A material breach.

4.6 The contractor acknowledges that, notwithstanding the cancellation or termination of this agreement , the contractors obligations as more fully set out in clauses 15,(Unsatisfactory Repairs),18(Audits), 20(Fraud),and 21(Liability) below shall endure the cancellation of this agreement.

5. OBLIGATIONS

5.1Both parties undertake to operate in an open, honest and transparent manner and adhere to the highest ethical standards of the business practice.

5.2The Contractor undertakes to conduct his business and to educate those employed by him, to conduct business in such a manner as to avoid fraud or the perception of fraud.

5.3The Contractor undertakes to be intolerant of fraud when discovered and to co-operate with the appropriate official in investigation, documentation and prosecution.

5.4In accordance with the Company’s policy of maintaining the highest ethical standards, Company employees or their families are not permitted to accept gifts, loans or any other favours from the Contractor and/or affiliated members or companies.

5.5The Contractor undertakes to inform the management of the Company of any approaches that may be made for such gifts, loans or favours by any staff members of the Company or their families and provide full details.

5.6 The Company shall be entitled to conduct quality assessments and audits on all services rendered by the Contractor to the Company’s clients and the contractor undertakes to co operate fully with the said quality assessments and audits.

5.7 The contractor further acknowledges that the repair will be rated individually according to type of damage / repair and authorised based on the rates as agreed by the Contractor in “Annexure A”, irrespective of the grading and or Factory approvals the Contractor may have. A repair will not be assigned to a Contractor that does not have the required equipment or expertise to complete the specifically rated repair. The Repair Rating of each individual job will be indicated by the Motor Engineer in his report to the Company and the said Motor Engineers report shall be final and binding on the contractor.

6. OPERATIONAL PROCEDURES

6.1AUDATEX

6.1.1 It is agreed that the Company will utilize AUDATEX as its preferred quoting mechanism.

6.1.2 The Contractor will comply with and undertake to repair damaged vehicles for the amount indicated in the AUDATEX quotation prepared by the Company’s Motor Engineer. The Motor Engineer will adjust the quotation in order to accommodate second hand parts and unseen damage, where appropriate.

6.1.3 Should the Contractor compile its own AUDATEX quotations, the Company will assess the Contractor’s quote and will have the discretion to agree to a cost based on the Contractor’s quotation, this however does not preclude the Company’s right to compile its own AUDATEX quotation.

6.1.4 The Company’s Motor Engineers will print the AUDATEX printouts on the premises of the Contractor, alternatively and at the company’s discretion, the printout will be sent to the Repairer within 24 hours from time of assessment.

6.1.5 Any discrepancies between the AUDATEX and the agreed parameters of the job are not to be considered as extras but will be dealt with by means of a revised AUDATEX printout.

6.1.6 The Contractor will prepare manual quotations for vehicles / models not catered for in AUDATEX, which will be assessed manually.

7.VALIDITY OF QUOTATIONS

7.1Quotations will be valid for a period of 30 days. Any fluctuations in the price of parts during this period must be recorded and the final invoice adjusted by mutual agreement between the Contractor and the Motor Engineer.

8.LABOUR RATES, PRICING POLICY, DIRECT PARTS PURCHASING, SPECIALIST OURSOURCING AND REBATES

These aspects are dealt with in “Annexure A”, attached to and forming part of this Contract.

9.REPAIRS & REPLACEMENTS

9.1The Contractor must ensure that the most cost effective repair method is chosen when deciding whether to replace or repair a specific item. Any uncertainty should be resolved with the Motor Engineer and must be noted on the “Work In Progress” card. The Contractor further acknowledges that where second hand and/or replacement and/or reconditioned and/or remade parts are utilized in effecing the repair the contractor will comply with the provisions of the Consumer Protection Act of 2008 and notify the Motor Engineer and Insured.

9.2Should the Contractor decide to repair an item for which a replacement part has been authorised, the Contractor is required to obtain authorisation from the responsible Motor Engineer and amend the “Work In Progress” card accordingly before affecting the repairs. This decision must be authorised by the responsible Motor Engineer and the appropriate credit reflected on the final invoices.

10.unseen DAMAGE

10.1Extras will not be allowed unless the Motor Engineer is satisfied this could not have been identified at the time of the assessment.

11.Repair Process

11.1 The Contractor must liaise with the insured and/or vehicle owner and commence with repairs within 1 (one) work day upon receiving authorisation from the Motor Engineer.

11.2 The Contractor will provide the Motor Engineer, and if possible, the Insured with the estimated completion date of repairs. This is vital for the purpose of Car Hire orders.

11.3 Any likely delays must be notified to the Claims Clerk and Insured and a new estimated completion date provided.

11.4 Failure to commence repairs as per Clause 12.1 or any other undue delay will result in the Company at its sole discression moving the vehicle to a second repairer, such repairer being able to commence repairs immediately. No storage will be levied by the Contractor in the event of such vehicle removal.

11.5 The contractor undertakes to communicate with the Claims Clerk once the repaired vehicle is returned to the insured client.

12.SUB CONTRACTING

Other than specialist services provided for in “Annexure A” of this contract, the Contractor may not subcontract all or any of the work as authorised in terms of this Contract. Should the Contractor be unable to fulfill his obligations to repair the vehicle as agreed this must be immediately reported to the Motor Engineer or Company management.

13.VEHICLE REMOVALS, Storage and RELEASE FEES

13.1The Company reserves the right to remove a vehicle from the Contractor’s premises when deemed necessary for reasons such as but not limited to:

· A vehicle which is under warranty, where the Contractor is not approved accordingly.

· On demand of the insured provided that it is to another company approved repairer.

· Irreconcilable differences on repair costs and/or methods.

· For reasons as stipulated in Clause 12.1

13.2 If the vehicle is to be moved and has been at the premises longer than 5 working days a daily storage fee as per attached addendum will be allowed after the first 5 working days.

13.3No storage fee will be payable to the Contractor where such Contractor has been appointed to carry out repairs on the vehicle held in storage.

13.4Should a vehicle be considered a Write-Off, no storage fees will be allowed. A reasonable administration, security, towing and release fees will be paid by the Company. The Contractor agrees to notify the Company of any assessed Write-Off vehicle not collected by the Company’s duly appointed Salvage Contractor within 3 (three) days of such Write-Off vehicle being assessed.

13.5The Contractor agrees to submit invoices for storage and release fees pertaining to write-off vehicles directly to the company’s preferred Salvage Contractor.

14.GUARANTEE OF WORKMANSHIP AND MATERIALS

14.1The Contractor will guarantee all workmanship on the repaired vehicle for a period of 12 months from the date on which the repairs were completed. Parts will be subject to manufacturer’s warranty.

14.2Should a dispute arise between the Contractor and the Insured in respect of the quality of the repair, the Contractor will accept as final and binding the decision of the Company’s Motor Engineer or that of a third party appointed by the Company in resolving the dispute.

14.3The Contractor is responsible for obtaining payment of the indicated excess from the client prior to the release of the vehicle to the insured or after he has made arrangements suitable to himself for payment of the excess by the client. The Company will not be held liable in any way for any outstanding payment of the excess owing to the Contractor.

14.4The Contractor will not subsidise or waive any excesses payable by the insured claimant. In the event of the Contractor allowing such practice, it will be deemed a material breach of contract.

14.5The Contractor shall be given an opportunity to rectify any repairs deemed unsatisfactory by the Motor Engineer or the client. In the event of the Contractor being unable to satisfy the Motor Engineer and insured the Company shall be entitled to rectify these repairs elsewhere and all expenses consequent thereon or incidental to shall be recoverable from the Contractor who acknowledges his liability therefore subject to the provisions of clause 21 hereunder..

15.INVOICING

15.1All Tax invoices must comply with the requirements of section 20 of the Value Added Tax no. 89 of 1991 must be submitted to on the due date. It should be noted that payment would be withheld until the contractor supplies valid tax invoices.

15.2The contractor shall be obliged to provide with a separate tax invoice in respect of each order before payment will be effected. All invoices must contain the following information (where applicable):

· Official claim number

· Detailed itemised billing

· Final costing sheet (Annexure ”C”), signed by the motor engineer.

· Progress report

· Signed copy of the customer satisfaction clearance document (Annexure ”B”)

· Detailed break-down of any adjustments to the original order

· Copies of OEM / Dealer invoices for parts

15.3the company reserves the right to reject payment of invoices in the event of invoices containing incorrect information or if the contractor omitted any of the above pre-requisites.

15.4The Contractor may under no circumstance cede its rights to receive payment from any third party/factoring house unless specifically authorised/endorsed in writing by a Procurement Consultant of the Company.

15.5The Company undertakes to initiate the immediate payment process on receipt of a satisfactory repair invoice and final costing, accompanied by a signed and dated customer satisfaction clearance document from the claimant or vehicle owner.

15.6No invoice may be submitted prior to final completion of repairs.

16.OPEN BOOK POLICY

16.1The Contractor undertakes to adhere to an “open book” policy in all aspects, allowing the Company’s designated personnel to conduct work in progress audits and claims audits at the Contractor’s premises, from time to time in order to monitor compliance with the Agreement.

16.2Invoices and delivery notes for spare parts and materials purchased by the Contractor in fulfilling his obligation to the Company, shall be kept for a minimum of 5 (five) years according to the standards published by the South African Institute of Chartered Accountants.

16.3The Contractor undertakes to submit satisfactory original proof of purchase, as and when required, for all spare parts and materials utilised in fulfilling his obligation to the Company. Should the Contractor fail to satisfy the Company’s requirements, the Contractor will delete such items from the invoice and refund the Company any amounts due because of this non-compliance.

16.4The Company hereby reserves the right to disseminate information regarding default by the Contractor to other parties where relevant.

16.5The Contractor is required to keep claims on a file per claim basis. Each file will contain all relevant documentation as required by this Agreement.

16.6These files will be kept separate from any other institutions records in order to be made available as and when required by the Company.

17.AUDITS

17.1Regular audits on work in progress, completed work, as well as on the books of the Contractor will be carried out from time to time to confirm the proper execution of the agreement between the

17.2Book audits will be reasonably timed, with written notice of at least 7 days given to the Contractor.

17.3The Contractor will have the job file and all relevant documents available for perusal by the Auditor. These documents will include copies of the Contractor’s supplier invoices. On request, auditors can call for Contractor’s supplier statements, original invoices and credit notes.

17.4Any problems that the Contractor might have regarding the audit must be resolved at the time of the audit and not thereafter.

17.5Any financial discrepancies discovered by the Company’s auditor will be advised to the Contractor and any monies thus due to the Company shall be paid by the Contractor within 5 days of completion of the audit.

17.6Serious discrepancies without satisfactory explanation will be deemed to be a material breach of the contract.

17.7Should the Contractor, despite prior notice fail to facilitate the audit, the Company reserves the right to suspend the Contractor until such time as the audit has been completed and found to be satisfactory. The Contractor is required to conduct self-auditing procedures on the work in progress in order to ensure all the requirements as set out by this agreement are adhered to.

17.8If the final cost of repair differs from the original quotation the invoice must be submitted to the Company with a full costing sheet for reconciliation.

18.SIGNAGE

18.1As a Repairer, the Contractor may be provided with approved signage for display, which will be recalled in the event of contract termination.

18.2No other Logo or signage will be displayed or used without specific approval from the Company.

19.DISCIPLINARY

19.1The Company has a policy of zero tolerance towards fraud and any fraudulent practices will render this contract null and void.

19.2The Company reserves the right to lay criminal charges and institute legal proceedings against any person or entity deemed to have committed fraud against the Company.

19.3The Company constantly monitors and evaluates the performance of its preferred service providers. Should it be evidenced that the Contractor does not meet the high standards of service, workmanship or ethics required by the Company, the Company reserves the right to terminate this Agreement with immediate effect.

20.LIABILITY

20.1The Company, its employees and its agents shall not be liable for any loss, damage or liability incurred by the Contractor, where such loss or damage arose from the negligence, gross negligence or willful act of the Contractor, its employees and its agents or where such loss or damage arose from any other cause whatsoever.

20.2The Company shall also not be liable for any loss or damage sustained by an insured or a Third Party as a result of the negligent, grossly negligent or willful actions of the contractor or its personnel, Contractors or agents.

20.3In the event of the Company being held liable or in the event of any legal action being commenced against the Company, as a result of loss damage, injury sustained by a Third Party or an insured as a result of the negligent, grossly negligent or willful action of the Contractor, its personnel, Contractors or agents, the Contractor agrees to indemnify the Company against any loss or damage, the Company may sustain as a result of such actions.

20.4The Contractor shall ensure that all of its personnel, agents or contractors agree to abide by the provisions of this Agreement and its addendums where this is applicable to such personnel, agents or contractors.

21.DISPUTE RESOLUTION

21.1The parties shall jointly decide on appropriate mechanisms to resolve any disputes that may arise in relation to or from this agreement. Such dispute resolution mechanism shall endeavor to be as informal as possible and shall be the first measure in resolving any dispute. Any dispute to be resolved in terms of this clause must be resolved within 14 (fourteen) days of the dispute arising.

21.2As a last resort and only in the event that the parties are unable to reach agreement on any dispute or dispute resolution mechanism referred to in Clause 22.1, the matter will be further discussed between the managing directors, or the nominated representatives, of the parties.

21.3Notwithstanding any dispute having arisen and pending resolution of such dispute, the parties shall abide by their contractual obligations unless they agree to the suspension or cancellation thereof.

21.4Nothing contained herein shall prevent a party seeking urgent or other relief from an appropriate Court.

22.WHOLE AGREEMENT

22.1This agreement constitutes the whole of the agreement between the parties hereto relating to the subject matter hereof and save as otherwise provided herein no amendment, alteration, addition, variation or consensual cancellation shall be of any force or effect unless reduced to writing and signed by the parties hereto.

22.2The parties agree that no other conditions, warranties or representations whether oral or written, and whether expressed or implied, whether by statute or otherwise, shall apply hereto.

23. TRANSFER OF AGREEMENT

The Contractor shall not cede or sign transfer of this Agreement or any portion thereof without the consent in writing of the Company first being obtained. The Company shall not be bound to give such consent but may withhold same without assigning reason therefore or grant such consent subject to such terms and stipulations as the Company may in the Company's absolute discretion deem fit. In the event of the agreement being ceded the Contractors obligations as set out in clauses 15,(unsatisfactory repairs),18(Audits), 20(Fraud),and 21(Liability) will survive such cession shall remain in full force and effect.

24.APPLICABLE LAW

The terms and conditions of this agreement shall be governed by and interpreted according to the laws of the Republic of South Africa.

25.DOMICILIUM CITANDI ET EXECUTANDI

25.1 The parties choose domicilium citandi et executandi ("domicilium") for all purposes relating to this agreement, including the giving of any notice, the payment of any sum, the serving of any process, as follows –

25.1.1 Regent

physical-

facsimile-

25.1.2 Contractor

physical-

facsimile-

25.2 Either party shall be entitled from time to time, by giving written notice to the other, to vary its physical domicilium to any other physical address (not being a post office box or poste restante) and to vary its facsimile domicilium to any other facsimile number.

25.3 Any notice given or payment made by either party to the other ("addressee") which is delivered by hand between the hours of 09:00 and 17:00 on any business day to the addressee's physical domicilium for the time being shall be deemed to have been received by the addressee at the time of delivery.

25.4 Any notice given by either party to the other which is successfully transmitted by facsimile on a business day to the addressee's facsimile domicilium for the time being shall be deemed to have been received by the addressee on the business day immediately succeeding the date of successful transmission thereof.

25.5 This clause 26 shall not operate so as to invalidate the giving or receipt of any written notice which is actually received by the addressee other than by a method referred to in this clause 26.

26.NOTICES

26.1Any written notices required by this agreement shall be posted by prepaid registered post, faxed or delivered by hand to the address in Clause 26 or any other address notified to the other party in writing.

26.2Unless provided otherwise where written notice is in terms of this agreement:

26.2.1Posted, it shall be deemed to have been received 7 (seven) day after such notice was posted.

26.2.2Faxed, it shall be deemed to have been received on the first business day after such notice was faxed;

26.2.3Delivered by hand, it shall be deemed to have been received on the date it was so delivered.

27.BLACK ECONOMIC EMPOWERMENT (BEE)

The Contractor should be embarking on a BEE transformation program with the aim of being classified as a “Very Good’ contributor to BEE. The Company reserves the right to cancel any agreement with the Contractor should it become clear that the Contractor is not committed to the said BEE transformation program and/or decide not to renew this agreement following the expiry date of this or any subsequent agreement.

THUS DONE AND SIGNED AT __________ ON THE ___ DAY OF ___________ 2010.

In the presence of the undersigned witnesses:

AS WITNESSES

1. ____________________________

2. ____________________________

__________________________________

REGENT INSURANCE COMPANY LIMITED

THUS DONE AND SIGNED AT __________ ON THE ___ DAY OF ___________ 2010.

In the presence of the undersigned witnesses:

AS WITNESSES

3. ____________________________

4. ____________________________

__________________________________

CONTRACTOR WHO WARRANT THAT HE IS DULY AUTHORISED TO ACT HEREIN

ANNEXURE “A”

ADDENDUM TO

MOTOR REPAIRER AGREEMENT

BETWEEN

REGENT INSURANCE

COMPANY LTD

AND

CONTRACTOR

ANNEXURE “A”

LABOUR RATES PRICING POLICY & SPECIALIST OUTSOURCING

Any changes to this Addendum will be subject to negotiation and reduced to writing, which will subsequently form part of this Agreement.

A) LABOUR RATES (Strip, Assembly & Repair)

Each repair will be rated individually according to type of damage and authorised based on the following agreed

rates:

Type of Repair

Agreed by the Contractor

Non Structural Repairs

Negotiated by Assessor

Advanced Structural Repairs


Major Structural Repairs


**Factory Approved MSR Repairs **


** (Vehicles not older than 3 years and still under Warranty) **

Non Structural Repairs (NSR) – Cosmetic Repairs, Stone Chips, Scratches, Lenses and Glass, Beadings, Grills, Trim, Bolt on / Bolt off part Replacement for Front Fenders, Bonnets, Front Bumpers, Front Lower Valances.

Advanced Structural Repairs (ASR) – Replacement of Bolted Parts, Bumpers, Front inner Tray Extensions, Front Fenders, Exhaust Systems, Bonnets, Outer Sill Panels, Cross Members, Doors, Condensers, Radiators, Front Panels, Steering Racks & Control Arms, Rear Panels. Repairs of Outer Panels, Welded Panels, Minor Dents, Any other Panels including Panels damaged by hail.

Major Structural Repairs (MSR) – Replacement of Boot Floors, Inner Sills, Rear Fenders, Body Shells, Inner Panels, Passenger Compartments, Floor Panels, Shock Turrets, Minor Engine Parts, Inner Door Sills, A/B/C Post Pillars, Engine/Gearbox/Rear Axle, Classic Legs. Repairs to Major components, Body Shells, Floor Panels, Engine & Suspension, including Burnt and Overturned Vehicles.

MSR Factory Approved Repairs (Vehicles not older than 3 years and still under Warranty) – All repairs deemed to influence the warranties of the Vehicle as per the guidelines set out by the appropriate Factory in its Warranty Agreements. No Factory Approved Repairs will be allowed to any Contractor unless the Contractor is in possession of a valid and current Approval Certificate and this Certificate has been supplied to the Company for their records.

Each repair will be rated individually according to type of damage / repair and authorised based on the rates as

agreed by the Contractor in “Annexure A”, irrespective of the grading and or Factory approvals the Contractor may have. A repair will not be assigned to a Contractor that does not have the required equipment or expertise to complete the specifically rated repair. The Repair Rating of each individual job will be indicated by the Motor Engineer in his report to the Company. The Motor Engineers Repair Rating shall be final and binding unless clearly incorrect.

B) PAINT RATES (Labour & Material Inclusive)

Type of Repair

Agreed by the Contractor

NSR, ASR & MSR


C) PRICING POLICY

The Contractor agrees to the following parts mark-up structure and Specialist Outsourced item rates, these prices and rates all exclude VAT:

(i)GENUINE SPARES

New Genuine Spare, Net Pricing System = Net + mark up % agreed by assessor.

New Genuine Spare, Total Retail Pricing = Retail Pricing - No mark-up allowed

(Not to affect the built in Discount Structure)

(ii) GENERIC SPARES

Generic / Alternate / XXX, On Net Pricing System = Net + mark up % agreed by assessor.

(iii) 2ND HAND SPARES

No 2nd hand mechanical, steering, suspension or safety critical components are to be used without authorisation by the Motor Engineer.

Price to be set at Obtained Price + mark up % agreed by assessor. Limited to no more than 60% of the price of the equivalent new part.

2nd Hand parts must meet the following criteria:

Must be compatible to the make, model and year of the original damaged part and have the same or superior condition.

Work in Progress Card must be amended prior to fitment of such parts. The appropriate cost reduction is to be reflected on the invoices.

(iv) STOCK ITEMS

No stock items are to be used as part of any repair work unless agreed by the assessor.

Stock items are defined as:

Genuine parts but outdated stock from Manufacturers or Dealers, bought on tender without price invoices per item.

2nd Hand spares acquired without suppliers invoices as proof of purchase.

Previously damaged items retained and repaired by Contractor.

D) SPECIALIST OUTSOURCING

Wheel Alignment

Actual cost of alignment, for front and rear + 20% mark up.

Any quoted cost in excess of R200-00 must be authorized by the Motor Engineer who will require a detailed suppliers invoice.

Test results to be retained by Contractor for 3 months.

Air Conditioning

Actual quoted cost + 20% mark up. Maximum allowed R550-00.

Jig Hire

Celette Jig hire, invoice net price + 10% mark up.

Other bench jigs – max R600-00.

Tyres

Net price + 15% mark up.

E) STORAGE

If the vehicle is to be moved and has been at the premises longer than 5 working days a daily storage fee as per attached addendum will be allowed after the first 5 working days.

No storage fee will be payable to the Contractor where such Contractor has been appointed to carry out repairs on the vehicle held in storage.

Should a vehicle be considered a Write-Off, no storage fees will be allowed. A reasonable administration, security, towing and release fees will be paid by the Company. The Contractor agrees to notify the Company of any assessed Write-Off vehicle not collected by the Company’s duly appointed Salvage Contractor within 3 (three) days of such Write-Off vehicle being assessed.

The Contractor agrees to submit invoices for storage and release fees pertaining to write-off vehicles directly to the company’s preferred Salvage Contractor.

F) REBATES

The Company reserves the right to enter into negotiations with any Contractor regarding volume based rebates should it become evident that such Contractor has received work volumes that exceed the National average by 100% or more.

ANNEXURE “C”

ANNEXURE “D”

Additional Authorisation Sheet

Assessor:

Cell No:

Office Nr:

Fax Nr:

E-mail:

Claim Nr:

Repairer:

Insured:

Vehicle:

Branch:

Reg No:

Year Model:

Date

Part Description

Unseen

Omitted

Not Repairable

Comment

Assessor

Date

the preceding pages numbered 1 to 23, and will ensure that all of my/our staff and branches, where applicable, are fully informed of the contents hereof :

NAME

:............................................................

DESIGNATION

:.......................................….…...............

COMPANY

:............................................................

SIGNATURE:.......................................................

DATE

:…………………………………...

Company Registration Number

:..................................................

Company VAT Registration Number:.....................……….....….............

Domicilia citandi et executandi

:..................................…...….......

Postal address

:..................................….............

.................................................

.................................................

Contact Telephone number/s

:............................….....……..

:.........................…….............

ACCEPTANCE BY company

For and on behalf of the Company by:

Name: …………………………Designation: ……………….………………………

Signature : …………………………Date: ………………………………..…………..

PAGE

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Documents

MOTOR REPAIRER AGREEMENT - Hollard Motor... · Web viewshall mean those Auto Body Repairers who are black owned, empowered or influenced as defined in the Financial Sector Charter;