The line between body operations and mechanical operations is sometimes a bit blurry, however payment at one rate or the other can make a significant difference.
In their procedure pages, each estimating system states that it does not determine or recommend which labor rate should be used for which operation. In their data, they do designate part types and do pre-store labor rates for convenience.
Mitchell states, "The labor times shown in the Guide fall into various categories (for example: body, frame, mechanical) as determined by the repair facility's operating procedures. As a guide, components for which R&I or R&R is commonly considered to be a mechanical operation when performed in a collision repair environment are designated with the letter "m" in the text. These designations are only a guide. They are not necessarily all inclusive, nor do they suggest the application of a labor rate."
Two questions are raised when writing an estimate: 1. Is this operation a body, mechanical, structural or other labor operation? 2. What labor rate is proper for my compensation in each specialty?
The first step is to define these operations. Your estimating system defines part types in a general way as part of their procedure pages and pre-stores some labor rate designations. But these are only a guide. A specific list of all mechanical or structural parts as defined by your shop would be difficult to produce and even more difficult to use. Perhaps your own clear definition would serve as a good guideline to make your estimating procedures consistent.
At a recent Collision Industry Conference (CIC) meeting, MOTORS showed an interesting definition that you might want to use as a start.
"M (MECHANICAL) - Components that transform one form of motion or energy into another. These components would likely be serviced at a mechanical service facility rather than a body repair facility if that component failed during normal use.
S (STRUCTURAL) - Components that provide a load-bearing foundation for the purpose of safety and/or stability.
NO CLASSIFICATION - Components that do not fall under one of the other two classifications (no classification would default to a body or sheet metal rate).
Mitchell describes unibody structural components as "those which support the weight of the vehicle and absorb the energy of the impact as well as road shock."
A definition similar to these can help you consistently apply a proper labor rate for those gray-area parts, including air cleaners/ducts, radiator hoses and instrument panel parts.
The next step is justifying a different rate for your mechanical or structural operations. Why would these operations command a different dollar per hour than your normal sheet metal repairs? How can you justify a higher rate for these specialties?
Evidence of specific mechanical abilities is obvious with one or more dedicated mechanical technicians on staff but also is shown with dedicated mechanical repair stalls, mechanical tools and equipment (engine hoist, scan tools), and mechanical National Institute for Automotive Service Excellence (ASE) certifications.
Structural rates can be justified with use of modern frame and measuring equipment, evidence of specific technician training, and ASE certification for Structural Analysis and Damage Repair (ASE Test B4). These all show specific investments in facilities, equipment and training toward proper and safe repairs in these highly technical areas.
Finally, make sure the estimate calculates each operation at the proper labor rate even if the estimate is not from your system. Each system shows labor rates differently, so make sure you understand them.
With standard operating procedures in place for designating your labor rates, solid justification for a rate differential and careful review of each estimate, you can make the line between labor operations less blurry.
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