The Motor Vehicle Repairers Association is in discussion with insurers and repairers to set out benchmark conditions to be used in negotiations for future approved work contracts.
The flexible plan, due to be launched by December, will allow insurers to reward the top performing approved bodyshops.
Mike Monaghan, MVRA managing director, believed existing contracts failed because they were too rigid, with a tendency to treat all repairers in the same way.
“Our contract aims to replace this rigidity with a degree of flexibility,” he said. “We are confident that encouraging flexibility and rewarding the repairers that consistently offer a good and effective service will benefit the industry.”
The contract will look at performance-related payments, courtesy cars, parts delays and excess notice periods.
Mr Monaghan added: “The idea is not to push the repairers or the insurers into a corner but rather to work with both to ensure that cost-effective repairs are carried out profitably and to the satisfaction of everyone.”