How to Evaluate your Risks and Responsibilities

28 Mar 2008

Nowadays it seems like there are rules and regulations for just about everything. It might seem confusing but here, legal experts from Lawgistics explain which areas of your business you need to consider when making sure you stay the right side of the rules

The Reception area

The Reception area is the face of your business. It is generally the first point of contact with the customer and the point where you and the customer become legally bound.
This is where descriptions are given, prices quoted and claims made. It is here that you need to understand your risks.
Do you have chairs for the customer – soft calming music, a television to watch as the customer waits?
If so, then you will need a Performing Rights Licence and a Phonographic Performance Licence.

The Reception of the Vehicle

This is another important area to consider when thinking about the safety and liability of your business. Among the most important points to consider are:

Where/when will the vehicle be left – is it secure? Who is liable for accidental damage after it has been left?
Where will the keys be left – is the letterbox secure?
Who will move the vehicle and will it be examined before moving?
Are the vehicle keys to be tagged and where are they kept?
Is a courtesy vehicle provided – has a loan vehicle form been completed?

The Customer requirements

Communication is vital here. It’s not good to simply assume the customer knows or understands the implications of any work being carried out on their car.
Things need to be written down clearly and explained to customers. Questions you might like to ask yourself include:

Are customer requirements clear and documented – if not then you are putting yourself at risk?
Are things correctly priced – is it the same price you quoted over the phone – does it include VAT, disposal of waste, extras such as wheel balancing or valves?
Has the customer authorised the work?
Have you clear procedures for authorising additional work?
If it’s a service - is it your own, Autodata, or the manufacturer’s?

The Cost

How do you explain and/or justify your charges. Whatever they are, you need to make sure all those concerned in any transactions are fully aware of what they will pay and how charges are calculated. Ask yourself:

Is it a menu pricing or are you charging an hourly rate?
Is it book time or real time that’s charged? Book time can only be charged on menu pricing. Real time is related to hourly rate and the time taken

How and when is the bill to be paid? Can they take the vehicle prior to payment?

The Job Time

Last but not least, think about how long work is likely to take. This can play a key issue when it comes to legal disputes surrounding cost. Take a moment to consider the following:

Is there a time management system?
How long will it take?
When is it to be collected?
What pitfalls will prevent achieving the deadline?
Has a job sheet been completed, signed and passed to a technician for completion?

If you cannot be certain of any of the above points then you need to reassess your risk and liability.

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