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