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 28-3. 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 28-5. Sometimes parts must be removed to find hidden damage when
writing an estimate.
Figure 28-7. 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 28-10. 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 28-11. 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 28-12. 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 28-14. 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 emailed 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