Repair Facility Manual Chapter 4

Chapter 4: Pre-Repair Requirements Page 1

Revised May 2023

Chapter 4

Pre-Repair Requirements

Section 4-1

Estimates

4-1.1 Requirement. Prior to repairs being performed, a repair facility is required to provide an

estimate in each instance when the price of the diagnosis, service, or repair of a motor vehicle

will be $50 or more. See Appendix D for an example. The estimate must reflect as closely as

possible the actual cost of the repair (see Waivers, Section 4-2, for possible exceptions).

4-1.2 Components. The estimate must contain the following information:

a) A list of all parts necessary for a specific job, including the price of the parts. If any

of the parts is “new OEM, new, OEM surplus, used, rebuilt or reconditioned,” those

parts must be identified as such on the estimate.

b) Labor costs showing both the hourly price of labor and the estimated number of

hours required to perform the work.

c) Any charge made in connection with the return of replaced parts; charges for shop

supplies, such as rags, cleaning fluids, and lubricants; and charges for the disposal of

hazardous waste materials. The price quoted on the estimate must include the actual

dollar amount which will be charged for shop supplies (may not be a percentage).

d) The cost of disassembly, inspection and diagnosis of any component of a vehicle to

determine the extent of repairs needed. The estimate must also include the cost for

reassembling and reinstallation the portion of the vehicle in the event the customer

chooses not to authorize the repairs. For example, the fees involved with the removal

and diagnosis of a transmission must also include the reassembly and reinstallation of

the transmission.

e) The facility’s registration number.

4-1.3 Exceeding an Estimate. If the cost of the repair will exceed the estimate, the facility must

obtain authorization from the customer to proceed. The total cost associated with returning the

vehicle to pre-repair condition cannot be more than the estimated price (plus 10% or $50

whichever is less), or exceed the stated limit on the signed estimate waiver without authorization

from the customer.

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4-1.4 Drop-off Vehicles. If a repair facility does not have the opportunity to give the

customer an estimate when a vehicle is towed to the facility or left before or after the

facility’s normal business hours, the facility may comply with the estimate or waiver

requirement by doing one of the following:

a) A customer may leave the vehicle at the facility before the facility is open,

provided that a waiver form is completed (see Appendix B). The form must be

completely filled out, signed and left in the facility’s drop box.

b) A towing company may obtain a signed waiver from the customer and deliver the

waiver to the facility with the vehicle.

c) The facility may provide a copy of the estimate to the customer by mail or

electronic means. The customer must approve the estimate before any repairs are

performed.

d) The customer may go to the facility before any repairs are performed to receive

the estimate.

4-1.5 “No Charge” Estimate. A “no charge” estimate is a legal estimate. It advises the

customer that the facility will make no charge unless the customer specifically authorizes

more work. The estimate may be amended later only with the approval of the customer. It is

important to write “No Charge” on the estimate. The estimate amount cannot be left blank.

4-1.6 Diagnostic Estimates. Some repairs cannot be determined without first inspecting or

disassembling a vehicle or a component. In this case, only the cost to disassemble and inspect

can be accurately estimated. Estimates for only the cost of disassembly and/or inspection are

called diagnostic estimates. The following are requirements to provide a diagnostic estimate:

a) The diagnostic estimate must be given to the customer and must disclose the cost of

the inspection or disassembly.

b) Once the exact extent of repairs is known, the customer must be contacted for

authorization to begin the repairs. It is not necessary to write another estimate, the

cost of the repair can be added to the diagnostic estimate.

c) When a diagnostic estimate is given, it must include the cost of reassembly in the

event the customer decides not to have the repairs performed.

4-1.7 Electronic Estimates. Repair estimates may be provided to customers electronically

before repair services are performed, if the customer agrees. If the customer declines an

electronic estimate, the repair facility must provide a printed estimate to the customer.

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Requirements for electronic estimates:

a) Electronic estimates include estimates provided by email, text message or a software

application.

b) Electronic estimates must itemize all parts and services necessary for a repair and all

labor costs.

c) An updated estimate may be offered electronically when costs exceed the original

estimate.

d) Electronic estimates may also be offered to customers for diagnostic and no charge

estimates.

e) Electronic estimates must not waive any requirement to comply with any other

provision of the Act.

f) Repair facility owners must maintain in their records all copies of electronic

estimates and proof of their authorization by the customer for three years.

NOTE: All requirements listed in section 4-1 of the Michigan Repair Facility Manual must be met

when providing customers with electronic estimates.

NOTE: Customers may accept the revised estimate through email, text message, or a software

application. The facility shall make a note on the final invoice of how the revised estimate was

accepted.

Section 4-2

Waivers

4-2.1 Use of Waivers. In some cases, a customer may waive a repair facility’s obligation to

provide an estimate. This is done through use of a waiver of estimate. See Appendix B for an

example.

4-2.2 Waiver of Estimate. A repair facility may obtain a waiver of estimate from the customer

under all of the following conditions:

a) The customer makes a request for service or parts.

b) The customer waives his or her right to receive an estimate.

c) The customer exercises his or her right to approve repairs up to a maximum dollar

amount specified in the waiver.

d) The w

aiver is given voluntarily by the customer with full knowledge of the

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implications.

e) The waiver is not used by a motor vehicle repair facility or any employee in an

attempt to evade the law.

f) The dollar limit specified on the waiver cannot be exceeded without the approval of

the customer. The $50 or 10% override provision for estimates does not apply to the

dollar limit in the waiver.

g) A repair facility cannot make a waiver a condition of doing business.

NOTE: One copy of the waiver must be given to the customer. (see Appendix B).

4-2.3 Emergency Waiver. When an emergency occurs, and a certified mechanic is not

available, a customer may voluntarily request repairs using a waiver of liability.

a) Definition. A “waiver of liability” releases a facility from liability resulting from the

performance of a major repair by someone other than a certified mechanic.

b) Customer Rights. An emergency waiver is not a waiver of the customer's right to an

estimate before repairs are begun. It does not relieve a facility from compliance with

other requirements of the law. The emergency waiver is designed for isolated

situations only and is never a substitute for a facility's employing mechanics certified

in the areas of major repair ordinarily offered by the facility.

c) Conditions. All of the following conditions must be met:

1) The customer is requesting repairs due to a genuine emergency. An

emergency is constituted by circumstances in which failure to have repairs

completed immediately would expose the customer to substantial physical

danger or economic harm.

2) The facility does not have a mechanic on duty with the proper certification

who can perform, supervise, or inspect and approve the repairs.

3) There does not exist within a reasonable distance another facility that is

open, which has on duty an appropriately certified mechanic, and which,

without creating unreasonable delay or expense, could complete the

requested repairs in response to the emergency.

4) The facility must start and complete the repairs without unreasonable delay,

adequately responding to the emergency.

d) The waiver must be in duplicate, with one copy given to the customer.

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e) This waiver is not effective unless provided to the customer voluntarily and with

knowledge of the implications of the waiver. It is a violation of law for a repair facility or

employee to use a waiver of liability in an attempt to evade the Act or Rules.

f) The waiver of liability must read as follows:

I, ____(

CUSTOMER NAME)______________ _, VOLUNTARILY

REQUESTED ___(FACILITY NAME)__________________________ TO

PROVIDE SERVICES OR PARTS IN THE REPAIR OF THE BELOW

DESCRIBED MOTOR VECHILE BECAUSE OF AN EMERGENCY AND

THEREBY WAIVE ANY CLAIM OR CAUSE OF ACTION I MAY HAVE

AGAINST EITHER __(REPAIR PERSON)______________ OR

_________(FACILITY NAME)____________ AS A RESULT.

MOTOR VEHICLE DESCRIPTION: _________________________________

__________________________________________________________________

CUSTOMER SIGNATURE__________________________________________

DATE __________

TIME __________

NOTE: If a facility uses the emergency waiver in a situation where one or more of these

conditions are not met, this will be considered an attempt to avoid compliance with the law and

an improper use of the waiver.

4-2.4 Long Term Waiver. A repair facility may make a long-term agreement either with an

individual customer or with a commercial or "fleet" customer. This is called a “long term” or

“blanket” waiver of estimate.

An estimate or a waiver of estimate is not needed for each vehicle repaired. A long-term

waiver may be executed in the form of a contract between the facility and the customer. The

waiver shall be renewed on an annual basis. The contract must meet the following

conditions:

a) Have a statement that, if any repair transaction will exceed a specified amount,

the facility must obtain the customer's specific authorization.

b) The agreement must be signed by the customer, dated, and include the future date

when the agreement expires.

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c) The facility must keep a copy of the agreement and give a copy to the customer.

NOTE: A waiver of estimate does not affect the customer's other rights under law.

Section 4-3

Defining the Customer in Insurance-Paid Transactions

4-3.1 Definition. In any repair transaction, the “customer” is the owner or operator of the

vehicle brought for service or repair. In a damaged vehicle transaction, the customer is not

the insurance company or extended warranty company, unless the customer has given the

insurance company a signed authorization to act as his or her agent in the transaction.

4-3.2 Authorization. The repair facility must provide the customer with an estimate. In a

few cases, the facility may obtain a signed waiver of estimate, as provided in section 4-2.

Approval for repairs must be given by the owner of the vehicle or the person operating the

vehicle when repairs are requested.

Unless the insurance company presents the repair facility with a signed legal authorization

from the owner or operator to contract for repairs, no work may commence at the sole

direction of the insurance company or extended warranty company.

4-3.3 Additional Repairs. For additional repairs costing more than 10% or $50

(whichever is less) above the original estimate, specific authorization must be obtained

from the customer, unless the customer specifically gives the insurance company or

extended warranty company a signed authorization to act as his or her agent in all aspects of

the repair.

4-3.4 Other Considerations. The following conditions must also be met:

a) The customer has the right to the return of replaced parts and the right to a detailed

final bill. The customer may authorize the repair facility to dispose of replaced parts.

b) No other customer rights and remedies under the law and rules are altered.