Motor Garage repair question

[Nealf]

Hello,

I would be very grateful for some advice as to where I stand on the following issue, the law is far from my area if expertise and any assistance will be very welcome and appreciated.

I run a small garage repair business, I 'm a sole trader and have a good reputation and a long-standing customer base.

some weeks ago a new customer approached me and asked me to look at an issue with their car. I diagnosed a failed cylinder headgasket and/or cracked cylinder head, I advised it would be prudent to have a local engineering shop carry out a crack test on the cylinder to see if they could find a crack fault which he agreed to, and further advised that the crack test could not always be 100% accurate but was the best choice we had available. The cylinder head was sent in for crack testing, and upon collection they advised it all seemed fine and at this point I notified the customer and ordered the parts to complete the job. The job was completed, however unfortunately the exact original fault still existed, having spoken to the engineering shop they feel the cylinderhead is cracked but there machine is unable to locate this crack, hence I have done an awful lot of work to a very high standard in the best of faith, but the end result has not been successful due to a probable crack within the cylinder head that cannot be seen by eye or detected by specialist testing. The vehicle still runs and drives, but has the same original problem, hence whilst it has had a lot of new parts and labour it is no better or worse than when it first came in.

The customer has written me a letter saying he is prepared to pay the original quote I gave but no more, but is insisting I repair the engine, whatever the cost to me (which would be significant as it will likely need a new cylinder head), at no extra cost to him. Bearing in mind I have nit caused any further issues to his vehicle, and was not the cause of the initial failure either. I wish to hand him the car back now (as it is in the same condition I recieved it in initially, save for a lot of new parts I have installed during the attempted repair), and wish to apply no charge whatsoever to the customer, as I am prepared to absorb the £800 of parts/specialist charges and 24hrs worth of my labour time I have put into this car, hence he would now get his car back and would pay nothing. Am I within my rights to do just this?

Thank you for any advice you can provide,

Neal.

[efpom]

In law, this really turns on whether your quote was a) the fixed price to fix the issue, no matter what the cost was to you or b) whether the quote was simply an estimate of the cost to diagnose whether the fault was because of a cracked cylinder head or some other fault e.g. a blown head gasket and attempt a repair on that basis.

I assume that you will select b) In which case, the customer will be required to elect to pay for a new cylinder head, but with no guarantee, or pay for the work done so far, and either take the vehicle away, or instruct you to continue at his cost and risk. You have a lien on the vehicle until you are paid for the work done on it so far.

I would be writing to the customer pointing out the quote was for b) and holding firm on your right to payment before the vehicle is removed or whether he wishes you to continue to attempt repair at his risk and cost.

Offers to settle, are best left until towards the end.

In my view, if you to let him take the vehicle away and do not charge him for the attempted repair, you could well find yourself on the wrong end of a suit claiming that it was your incompetence that caused the failure to cure, damages for distress and inconvenience and the loss of a couple of gallons of fuel in the tank when you had it.

Having said that, do please be aware I am not the patron saint of car mechanics - quite the opposite - but I do not like to see hardworking people being made mugs of, either.

[Nealf]

Hello Efpom, Thank you very much for taking the time to offer me excellent advice, this gives me plenty to consider as I will need to draft a letter of reply to the customer. During all of my conversations with the customer, I have always been clear that the cost advised was an estimate and to that end I would exercise best practice on my behalf to ensure as far as I possibly could that the final cost did not rise significantly, if at all, which has proven to be the case. I can see that my potential offer of writing all costs off at my expense could leave me in a tricky situation should he take the matter further, I would also be prepared to simply charge for parts used only and then release the vehicle back to him, do you think this could leave me any better protected than trying to gain full payment? Thank you again, your help and time is very much appreciated. Neal.

[efpom]

The proposition that you committed to fixing the problem for a fixed price, no matter what it costs you, does not make commercial common sense, which in my view is fatal to the customer's belief, unless he has cogent proof that this is what you promised.

I know very well that your wish is to get this problem out of your hair, as swiftly as possible, and bring finality to it. However, you will still have to pay for a haircut, food and a roof over your head, so I would not be too quick to take a total loss here, just to suit a customer who seems to be delusional.

My commercial advice is that I think it better to be firm at first and then if the chance for compromise appears, then propose a full and final settlement - everything must be in writing at every stage.