IMPLEMENTING AND MONITORING THE CONTRACT
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CHECK THE SMALL PRINT R&M contracts stand or fall on the quality of the local dealer or repairer that delivers the service, so consider the contractor as well as the contract. Is the workshop and the workmanship up to scratch? Is it convenient in terms of its location and business hours? Is it easy to do business with the company? Are parts and labour charges reasonable for non-contract work?
The operator too has an important role in making the R&M contract work. Presenting vehicles at the appointed time is the bare minimum. Given advance warning of defects so that parts can be picked in advance and sufficient time allocated is beneficial.
Any truck manufacturer likes to quote its service network’s average first-time pass rate at annual test. These averages are normally more than 90%, compared with the national average truck rate of 74.5%, (year to 31 March 2011). More than 90% sounds impressive, but remember that trucks presented for test by franchised dealers are likely to be younger than average, so comparisons might not be entirely fair. Nevertheless, it is worth establishing the pass rate of the local dealer or repairer.
Vosa’s Guide to Maintaining Roadworthiness makes it plain that operators must keep tabs on their maintenance contractor’s work: “Even when you get on well with a contractor, you should have a system for regularly monitoring the quality of the work done.” It may be appropriate to use a third-party auditing company, such as the Freight Transport Association’s Vehicle Inspection Service, to monitor the standard.
Before signing an R&M contract, it is prudent to check the terms under which you can withdraw from it. Perhaps you are dissatisfied, maybe the vehicle is no longer needed or it is written off in an accident. Whatever the reason, you will have to give notice. Some manufacturers might impose a penalty – perhaps three months’ charges – for early termination.
R&M contract prices depend on type of work, annual distance and region of operation. The onus is on you to inform the R&M provider should any of those change. The most likely is that annual distance is at odds with the contract figure. Distances normally are checked annually, with the charge for the following year adjusted accordingly. Make sure you know how the charge will change if there is a discrepancy. Check if there is a mechanism to pool distances across several vehicles. Make sure you know how distance discrepancies are handled at the end of the contract. For Hypothetical Haulier, the R&M charge for contract distance equates to about 5p/km: we were quoted excess distance charges ranging from 5p to 15p/km. Check the degree of tolerance – if any – before this charge is applied. If the actual distance is less than the contract figure, there might be limitations on the amount of credit that you receive.