A contractor having had their knuckles wrapped for adding a 10% ‘admin’ fee to claims (HHJ Godsmark – para 40):
The additional 10% Administration Charge is not a reasonable addition to the CECA rates and would thus lead to an unreasonable repair total. It is disallowed.
we now note Kier Highways, using in part CECA (for some obscure reason) has adopted a new stance, adjusted their charging methodology.
Previously adding a 10% claims handling charge, they have replaced the uplift with a new one and are charging more! Drivers, fleets, hauliers and their insurers (Third Parties) can now expect to see a ‘Planning and Permanent Repair (Fixed Cost)’ starting at 8.22% being applied (to a £10,000 claim) and increasing as the claim value decreases – the fee is a fixed charge of £822.37 (examples below).
So much for Third parties and the Authority being charged common rates, transparency and the use of ‘actual costs’ – read more about ‘Actual Costs’ here. We suspect any approach to the Authority for an explanation of the conduct was undertaken in their name will be met with the hackneyed ‘go-to Court’ response.
More profiteering in the name of a Public Authority:
There are many aspects to the above presentation that add to concerns and which we will explore & explain over the coming weeks.
Z03A627 / Z03A387