Binding, non-binding, and binding not-to-exceed estimates

These three words describe three different contracts. Most people never notice which one they signed until the bill arrives.

Binding estimate

A fixed price for the services and items listed. If the shipment weighs more than expected, you still pay the agreed amount — provided nothing was added to the list. If you add items or request services that were not in the estimate, the carrier can require a new binding estimate or convert the charges.

Non-binding estimate

An educated guess. The final price is calculated from the actual weight and the services actually performed, so it can come in above or below the estimate.

Binding not-to-exceed

Usually the best of the three for a customer. The estimate becomes a ceiling: if the shipment weighs less than estimated you pay the lower actual amount, and if it weighs more you still pay no more than the estimate. It is sometimes called a guaranteed price or a not-to-exceed price.

How to tell which you have

It must be stated in writing on the estimate itself. The document should say plainly which type it is. If you cannot find those words anywhere on the paperwork, that is the question to ask before signing anything.

What makes a price move

• Weight, on non-binding estimates. Estimates based on a walkthrough are usually closer than ones given over the phone from a room count.
• Access at either end. Stairs, no lift, a long carry from the truck to the door, or a street that cannot take a full-size truck all carry charges.
• Specialty items. Pianos, safes, gun cabinets and large appliances are usually priced as individual line items.
• Extra services agreed on the day, such as packing that was not in the original estimate.
• Season and date. Summer, month-end and the last days of the month are the most expensive slots in the calendar.