Moving Guide

What Is a Binding Not-to-Exceed Moving Estimate?

Published December 22, 2012 · Written for MovingGuru readers since 2013

The short answer

A binding not-to-exceed estimate puts a ceiling on your bill. If the shipment weighs less or takes less work than estimated, you pay the lower actual amount. If it weighs more, you still pay no more than the quoted figure, as long as the services and inventory do not change. It is the most consumer friendly of the three common estimate types.

Binding non-to-exceed agreements are just about as good as they get.

Binding not-to-exceed moving estimates are not estimates at all. Estimates imply uncertainty; binding not-to-exceed is very certain. It establishes, in writing, how much you will pay for services, with a cap on the total amount you can pay.

For example, you might agree to pay $100/hr with a max of $3,000. So, your move will either cost $3,000 or less, no matter how long it takes.

Binding not-to-exceed agreements compete with flat rates for the best moving price. Depending on the circumstances, getting a binding not-to-exceed estimate might be better than a flat rate, and vice versa.

Binding Not-to-Exceed Estimates vs Flat Rates

A flat rate is another very useful moving price option. Basically, you set up a set price for your move, which applies no matter what.

Binding not-to-exceed rates are better than flat rates when there’s a chance your move will be cheap.

  • For example, if you agree to pay $100/hr, with a cap of $3,000, and your move only takes 15 hours, then you only pay $1,500. No doubt, this would be better than a flat rate of, say, $2,500.

The best way to determine whether you move will be cheap is to get a good estimate, based on the following factors:

  • How much stuff you have – The more you have, the more expensive it’ll be.
  • How far the move is – Long-distance moves will take more time and are more expensive.
  • Difficult situations – If you have stairs or thin hallways, it can add to the total time of the move.
  • Difficult possessions – Couches, pool tables, pianos…

So, if you have a flat rate option and a binding not to exceed option, think about the chances of the binding option being cheaper in the end. If the chances are good, and the max (price not-to-exceed cap) is a price you can accept, then go with the binding option.

If you think it’s doubtful that the over-all price will be less than a flat rate, then go with the flat rate.

Get free moving quotes to start the process of getting a binding or flat rate price.

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The three estimate types side by side

Estimate typeCan the price rise?Can the price fall?Effect of shipment weightIf you add servicesConsumer considerations
Non bindingYes, with the actual workYesCharges follow the actual weightAdded to the final billCheapest looking quote, least certainty
BindingNo, for the listed servicesNo, you pay the quoted price either wayPriced in advance from the surveyed inventoryRecorded on a change order and chargedCertainty, but no benefit if the job shrinks
Binding not-to-exceedNo, the quote is a ceilingYes, down to the lower actual amountA lighter shipment reduces the bill, a heavier one does not raise itRecorded on a change order and chargedUsually the best of the three for a household move

In all three cases the protection only applies to the services and items on the paperwork. Add a storage unit's worth of boxes on move day and you have changed the job, which is what a change order records.

Where the final price can still move

  • Items that were not on the inventory when the estimate was produced.
  • Services you ask for later: packing, unpacking, storage, appliance disconnection.
  • Access that turns out to differ from what was described, such as a shuttle or a long carry.
  • A change of address, a change of date or a delivery spread you asked to alter.
  • Extra valuation coverage chosen at the point of signing.

None of those are automatically improper. They are changes to the job, and they belong on a signed change order with a price on it before the work happens.

Estimate, contract and bill of lading

The estimate is the price for the job as described. The moving contract records what both sides agreed. The bill of lading is the document you sign at pickup and it governs the shipment itself. A ceiling that appears on the estimate but not on the bill of lading is the single most common reason people find they cannot rely on it later, so check that the estimate type and the figure are written on both.

Worth asking before you sign:

  • Which estimate type is this, in writing, in these words?
  • Was it produced from an in person or video survey of everything?
  • Which accessorial charges sit inside the ceiling and which sit outside it?
  • What happens to the price if the shipment is lighter than estimated?
  • What is the valuation level, and what is the deductible?
  • Will the estimate type and figure appear on the bill of lading?

How to get one and what to check

  • Ask for the estimate type in writing. Do not accept a verbal description of it.
  • Make sure the inventory is complete, including the garage, loft, shed and anything in storage.
  • Confirm the estimate is based on a survey, in person or by video, not a phone guess.
  • Check which accessorial services are inside the ceiling: stairs, long carry, shuttle, packing.
  • Read what happens if you add items, change address or change the date.
  • Keep the signed estimate with the bill of lading until the move is fully settled.

Flat rate is not the same thing

A flat rate is a single price for the job. A binding not-to-exceed price behaves like a flat rate at the top end but can go down if the shipment is lighter than estimated. That asymmetry is the whole point of it. For interstate moves, the federal household goods rules set out what estimates must contain and how they interact with the bill of lading.

If a bill has already arrived higher than expected, read how to dispute a moving company bill. To sanity check a quote before you sign it, use the moving cost calculator.

Sources: 49 CFR Part 375, transportation of household goods · FMCSA, Your Rights and Responsibilities When You Move · FMCSA Protect Your Move. Rules, programs and prices change, so check the source before you rely on it.

Frequently asked questions

What does binding not-to-exceed mean?
The quoted figure is the maximum you will pay for the listed services. If the shipment turns out lighter or smaller, you pay the lower actual charge instead.
Is binding not-to-exceed better than a binding estimate?
Usually yes for the customer, because a binding estimate holds the price even when the job turns out smaller, while a not-to-exceed price can come down.
Can the price still go up?
Only if the job changes. Added items, extra services, a shuttle that was not anticipated or a new address are recorded on a change order and are outside the original ceiling.
Do all movers offer it?
No. It is common on interstate moves but not universal, and local hourly work is often quoted non binding. Ask each company which estimate types it offers.

Filed under:Cost of MovingMoving CompaniesMoving Quotes & ContractsTypes of Moves

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