Why its important to implement
Formal written approval required for supplementary damage to ensure legal payment claims. Verbal approvals risk payment denial from work providers or private owners.
Verbal Approval Risks
If the body shop decides to begin work even with a verbal only approval, they are at risk of carrying out repairs without payment.
Supplementary Legal Protection
Without formal approval for repairs to begin the body shop has no legal claim to charge for work that is carried out and or completed.
Private Owner Approval Risks
In the case of additional work paid for privately by the owner of the vehicle, if the body shop does not have formal written approval by email, or message then the body shop is at risk that the owner may deny the approval.
Business Impact
No supplementary approval means business pays for additional parts and labor. Blocked bays and administration waste time pursuing denied payments.
Profit
If no approval is received prior to beginning work the business may have to pay for the parts and labour themselves if the work is then not approved.
General and Body and Paint Productivity
If work begins on a non-approved for repair job and then work is later stopped this will affect the productivity flow in the shop due to a vehicle taking up a bay if it is larger repair and wheel or steering parts are removed, this removing the ability for the technician to carry out other work.
Additional Administration Work
If the repair is denied after work begins or is completed and then payment is denied the business will waste time trying to get the owner of the vehicle to pay.
action steps
Implement formal written approval processes for all supplementary work, regularly check compliance, enforce policy with warnings.
Supplementary Approval Policy Enforcement
Regularly check that this is being carried out for every job, strong internal warnings if policy not followed once established.
Supplementary Approval Process
Implement process to ensure no work is carried out on a vehicle unless formal written approval is received.
Related tasks
Milestone:
02: Streamlining VDA Processes