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
Negotiated by Assessor
Major Structural Repairs
Negotiated by Assessor
**Factory Approved MSR Repairs **
Negotiated by Assessor
** (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
Negotiated by Assessor
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: ………………………………..…………..