Responsible for the Entire Repair
Per the Light Vehicle Accreditation Agreement (LVAA), repair shops are required to be capable of completing more than 80% of the repair work they accept (measured in labour hours), unless another amount has been approved by MPI. This calculation includes the entire component replacement or repair labour time.
For claims involving paintless dent repairs (PDR), a light vehicle accredited repair shop can sublet more than 80% of the PDR work; however, the shop is still responsible for the entire repair.
An MPI-approved estimate includes 40 hours of labour time for the replacement of a quarter panel. The OEM-recommended replacement procedure for the quarter panel requires a squeeze type resistance spot welder (STRSW) as the OEM-approved attachment method. The shop does not have a STRSW and will be subletting the quarter panel replacement to a qualified and capable shop. The approved MPI estimate has 20 hours of R&R labour time for the quarter panel.
To calculate if this repair is in compliance with the LVAA:
|Total labour hours||40|
|Less sublet repair hours||20|
|Labour hours the shop is capable of performing||20|
In this example, the shop is only capable of completing 50% of the work (measured in labour hours) and would not be in compliance with the LVAA. This may result in suspension of accreditation.