Scania Botswana, for example, recently signed a contract with Unitrans Botswana to re-contract older vehicles via the Classic 2.0 maintenance contract and restructure R&M contracts for more than 100 additional vehicles. „Our top priority is to partner with our customers,“ says Hugo. Our repair and maintenance contract includes all O license inspections and online document storage for quick and easy access. You are also insured for all repairs, including normal wear and tear. And we carry out your annual TÜV including the presentation. Daf and Mercedes-Benz, for example, take this two-step approach to their service programs, but other manufacturers prefer to offer more choices. Volvo Trucks, for example, offers three levels: blue, silver and gold. Blue is essentially a service contract, while silver and gold are both R&M contracts that offer different levels of inclusivity. MAN goes even further with four stages of maintenance contracts.
All of them include failure and recovery. Iveco is at the top of the tree: its Elements range offers no less than five levels, allowing operators to refine their coverage. If annual tests are included in the contract, specify whether this includes steam cleaning, presentation and new tests. How lucky is it to need a new battery after four years? How long does the fuel pump last? When does the clutch need to be replaced? When you buy an R&M contract, you`re essentially paying for all of these unknowns to fall under the responsibility of the maintenance providers. Transferring this risk from the unknown will never be cheap, and the extent of this risk increases disproportionately with the duration of the contract, as the probability of component failure increases. So if you`re in free fall for a long R&M contract, you`re paying to transfer more risk – it`s not because of the extra work and parts needed as the truck ages and the miles pile up. Additional key components or equipment – such as the tail lift, refrigeration units or superstructures – can be added to your program and then billed for the duration of the contract. The monthly fee for the above R&M offers seems high as we have requested that replacement tyres be included in the contract. This is a contentious point: our monthly fee would likely be reduced by £120 to £150 if tyres were not included, so operators would be well advised to see if they can manage this large part of the cost more efficiently by entering into a tyre management contract independently (see CM`s Buyer`s Guide to Managing tyres in www.commercialmotor.com). Scania`s workshop services are based on customer-oriented repair and maintenance (R&M) contracts. Cost-effective packages available across the entire product portfolio allow customers to spread repair costs over the life of the contract, eliminating unexpected costs and avoiding sudden expenses that can impact cash flow. This allows companies to manage cash flow more efficiently, even in the most unforeseen and challenging circumstances.
If the vehicle in question is rented, it is worth going through the BVRLA (British Vehicle Rental and Leasing Association) „HGV Fair Wear & Tear Standard“. This will likely serve as a guide to determine what is an acceptable condition when trucks are returned at the end of their rental period. Operators must identify wear parts that do not fall within the scope of the contract and budget accordingly. The operator also plays an important role in ensuring that the R&M contract works well. The presentation of vehicles at the agreed time is the absolute minimum. It is also useful to notify the workshop in advance of unforeseen work or defects that need to be corrected so that the right parts can be chosen in advance and enough time can be allowed for the technician to complete the work the first time. The beauty of maintenance contracts is that they give you known monthly costs that are (more or less) set for the duration of the contract. The price is usually linked to the RPI (Retail Price Index), with contract fees adjusted annually. However, as a rule, it is possible to choose a truly fixed and inflation-proof rate. Judging by the offers we`ve received, these are likely to cost between 3.5% and 6% more than a follow-up RPI: this is your judgment on where inflation will go and whether the certainty of inflation is worth the extra. According to James Ostridge, Head of Service Contracts at Mercedes-Benz UK, more than 90% of Mercedes R&M customers choose to protect themselves from inflation by setting prices in full.
Now, when he buys a new truck company boss, Tim Wigham, he negotiates a two-year repair and maintenance contract as part of the purchase price and only pays for the annual truck tests. Daf can also monitor the truck so I can fix the problem if there are any problems or errors,“ says Wigham. .