Chapter 28 Estimating Repair Costs

Objectives Explain how damage repair estimates are determined Identify and explain the most common abbreviations used in collision estimating guides Make a rough estimate of the time required to refinish a given collision repair job Explain the difference between direct and indirect damage and locate both types

Objectives (continued) Identify the key operating features of manual and computerized estimating systems Compare manual and computerized estimating

Introduction Estimate: called a damage report or appraisal –Calculates the cost of parts, materials, and labor for repairing a vehicle –Printed summary of the repairs needed, used by the customer, insurance company, shop management, and technician Computerization has streamlined all aspects of collision repair shop operations

Damage Analysis Involves locating all damage using a systematic series of inspections, measurements and tests Before starting damage analysis you should: –Discuss the collision with the owner or driver –Identify the vehicle completely –List mileage –Identify and note all precollision damage –Check wheels and tires for damage –Confirm the point of impact and analyze how the damage has traveled

Direct and Indirect Damage Direct damage occurs in the area of immediate impact as a result of the vehicle striking an object Indirect damage is caused by the shock of collision forces traveling through the body –Can be more difficult to identify and analyze Take time to carefully perform an overall visual inspection

Vehicle Inspection Direction of impact affects parts damaged If frontal collision, inspect parts in the engine compartment Check under the vehicle for fluid leaks, which are signs of mechanical damage Always raise a badly damaged vehicle off floor In some unibody vehicles, it might be necessary to remove the drivetrain and suspension parts

Figure Indirect damage might be under or behind these damaged panels.

Vehicle Inspection (continued) Investigator must give a thorough inspection If something is missed on the original estimate, it is difficult to reopen it for further negotiations Photos can be useful if there are any questions about the repair Videotaping the vehicle before and after repairs can also be helpful Computerized estimating systems can use electronic photos and digitized video footage

Figure Sometimes parts must be removed to find hidden damage when writing an estimate.

Figure The estimator must have a thorough knowledge of vehicle construction and repair methods to develop an accurate estimate of repair costs.

Interior Inspection Check for damage caused by the collision forces Check door handles and door locks for proper operation Inspect alignment of the glove box door Check seats and restraint system for damage Check for deployed air bags and operation of motorized seat belts

Damage Quick Checks Quick checks analyze problems with the body structure, steering, and suspension systems A steering wheel center check makes sure the steering wheel has not been moved off center Inspect the strut carefully for signs of impact, bent housing, or other damage A wheel run-out check will show if there is damage to a rotating part of a wheel assembly A wheel run-out check has four steps

Dimension Manuals You may need to use unibody/frame measuring equipment to determine the extent of the damage After taking measurements of the vehicle, compare them to the body dimension manual Manual will give illustrations of known good distances from specific body/frame points By comparing your measurements, you can determine the extent and direction of damage

Collision Estimating and Reference Guides Collision estimating and reference guides help fill out the estimate They contain Illustrated parts breakdowns with names, numbers and prices, labor and refinish times and other information Never use them to determine the absolute price Each estimating guide has procedure pages

Damage Report Terminology R & I: to remove and install R & R: to remove and replace Overhaul: to remove an assembly from the vehicle, disassemble, clean, inspect, replace parts as needed, reassemble, install, and adjust Included operations are those that can be performed individually but are also part of another operation

Figure This is an example of an illustration from a crash estimating guide. Study the explanations. How much time would be charged to remove and install the energy absorber in the bumper?

Parts Costs “If it is bent, repair it, if it is kinked, replace it” A part is kinked if it is bent more than 90° Kinks along sharply formed edges almost always require replacement; a kink in the crush zone calls for replacement Repeated stress to areas located near the engine or steering mount can create failure Tightly folded metal that is “locked” due to severe work hardening requires replacement

Writing Estimates Manually written estimate is done longhand by filling in information on a printed form Electronic/computer-written estimate uses a personal computer and printer A damage report includes –Customer, vehicle information, including options –Date vehicle was received and promised completion date and sketches of damages area –Whether new or salvaged parts will be used –Summary of cost of parts and labor

Figure Here is an example of a manually written estimate. Read it through carefully. Note how both the cost of parts and labor have been tabulated.

Writing Estimates (continued) An estimate is a firm bid for a given period of time – usually 30 days Deductible clause means the owner is responsible for the first amount of the estimate Work order outlines the procedures to put the vehicle back in top condition Many factors to consider when writing an estimate, such as time for setup on straightening equipment, time to repair rust, etc.

Figure This chart can be used to convert time from an estimating guide into actual labor charges per hour. If the shop is charging $45 per hour and the labor time is 2.3 hours, how much labor in dollars will be charged?

Estimating Sequence A logical sequence must be followed Estimator should visually inspect entire vehicle Estimators start from the outside of the vehicle and work inward, listing everything on paper List by vehicle section, and remark on everything that is bent, broken, crushed, or missing Parts are listed in a definite sequence according to factory disassembly operations or exploded views as provided in service manuals

Flat Rate Operations Flat rate is a preset amount of time and money charged for a specific repair operation Repair cost should not exceed replacement cost To reduce costs, many insurance appraisers and some customers may want to use salvaged parts Each damaged vehicle poses different problems that must be solved The most difficult questions arise when a vehicle is involved in a major collision

Labor Costs Labor time reported in crash estimating guides is a guide only All labor times given in crash estimating guides include the time to properly fit the new part When jobs overlap, reductions in the labor times must be considered Flat rate manuals list a labor time plus a materials allowance Flat rate manuals do not include the dollar value of the materials required

Refinishing Time A correct estimate of the time to refinish panels, doors hoods, is a vital part of an estimator's job Flat rate manuals list a labor time plus a materials allowance Time required for refinishing is shown adjacent to the part name Refinishing times given in most estimates are for one color on new replacement parts – outer surfaces only

Refinishing Time (continued) Additions to refinishing times are usually made for the following operations: –Refinishing the underside of the hood or trunk lid –Edging the new part –Two-tone operations –Stone chip –Clearcoat after deduction for overlap

Total Labor Costs After all repairs and labor times have been entered on the estimate form, refer to time/dollar conversion table –Converts labor time into dollars to fit local labor or operating rates per hour When setting labor rates, include shop overhead Labor times shown in estimating guides are listed in tenths of an hour

Totaling the Estimate Once the columns of the estimating form are filled out, they are added together for a subtotal Add any extra charges to the subtotal, such as wrecker and towing fees, storage fees, and taxes Shops that sublet work usually have a “sublet” column If the customer wants extra work performed, this should be noted as customer-requested –Often, a separate estimate must be made for customer-requested repairs

Computerized Estimating Computerized estimating systems may provide more accurate damage reports –They store the collision estimating guide information in a computer Estimating system has all of the data needed at the shop office Estimators use the stored data to make virtually error-free estimates rapidly at a very low cost An estimating program helps find parts needed and labor rates

Figure A laptop computer can be taken out to the vehicle during damage analysis. It can also be used in the office to finalize the damage report.

Computer Database Computer database includes part numbers, part illustrations, labor times, labor rates, etc. Digital cameras take photos of the vehicle damage and store them as electronic data The estimator can look at these photos on the computer screen while finalizing the estimate Images can be ed to the insurance adjuster for evaluating the vehicle's damage A printer can be used to make a hard copy

Front Clips Front clip refers to a recycled/salvaged front end assembly Front clip includes –Front bumper and supports, grilles and baffles, radiator and its supporting members, –Hood and its hinges, front fenders and skirts –All front lights, wiring, and other related parts Often, this method of making repairs to the front end decreases the time the vehicle is in the shop

Total Loss Occurs when the cost of the repairs would exceed the value of the vehicle Insurance company usually determines if a vehicle is a total loss Totaled vehicle will usually be auctioned or sold to a salvage yard or recycler

Summary Estimate calculates the cost of parts, materials, and labor for repairing a vehicle Direct damage occurs in the immediate area of the collision Indirect damage is caused by the shock of collision forces traveling through the vehicle Refer to dimension manuals and estimating guides to aid in the estimation process Estimates may be manual or computer written