Apply sublet costs to an estimate when labour time for a sublet operation is listed in Mitchell

Collision repair program participants can apply the total cost of an eligible sublet to associated hours on the Mitchell estimate.

When this applies

A participant has sublet a portion of the repair to a third party, who has billed a higher labor rate than the ICBC prevailing rate for the operation, and the sublet is considered eligible by ICBC as outlined in the topic, Collision repair program sublet repairs policy.
Note: Participants choosing a sublet repair facility must consider businesses that provide competitive pricing in their market area. Excessive sublet costs may be denied or reversed when reasonable alternatives are available.

Procedure

  1. Enter all applicable operations on the estimate, including sublet operations, using Mitchell Estimating generated times and applicable labour rates.
    Example: When removal and installation (R&I) time of an engine is required to replace a structural part, the Mitchell R&I time is entered.
  2. Review the sublet facility’s labour time and hourly rate on the sublet invoice, ensuring the facility’s labour time does not include any overlaps performed by the participant.
    Note: Sublet labour times entered on an estimate cannot exceed Mitchell estimate times for the applicable operations. Additional material charges are not applicable to include, as materials are paid based on ICBC’s applicable hourly rate.
  3. Select the correct template.
    1. Click the Parts icon in the side bar.
    2. Select: My Templates.
    3. Select: ICBC from the  drop down list.
    4. Select: SUBLET RATE DIFFERENCE template line
  4. Identify the
    • applicable Mitchell Cloud Estimating (MCE) labour code associated with the sublet operation line, and
    • current pre-tax labour rate.

    For example, mechanical operations are marked with a “-M” designation in the description field.

  5. Determine the labour rate difference by subtracting the applicable ICBC base pre-tax labour rate from the retail sublet facility’s pre-tax labour rate.
  6. Multiply the difference by the applicable hours, less any overlaps.
  7. Add the total to the SUBLET RATE DIFFERENCE template line with an explanation line detailing the calculation.

    Example calculation: Sublet rate ($165 per hour) - ICBC mechanical rate ($115 per hour) = rate difference ($50 per hour) x R&I engine assembly for 15 hours = $750.

Parent topic: Collision repair program sublet repairs policy