Compensation for labour on recycled parts

Summary of recycled parts that are compensated for labour.

When a recycled parts supplier provides a part that requires repairing or refurbishing, then compensation for labour must be

fair and mutually agreeable by repair facility and the recycled parts supplier, and
paid by the recycled part supplier before the part is installed.

Exceptions

ICBC may approve compensation for labour when:

recycled part is returned for reasons beyond the recycler’s control, and
custom cutting of sheet metal recycled parts on a vehicle reduces or eliminates the opportunity for resale.

Example

Estimator determines the vehicle is repairable, but while it is being repaired it is discovered there is additional hidden damage. The additional hidden damage may cause:

repairs dollar amount to increase, and
vehicle becomes a total loss.