Skip to main content
ElromcoMoveBoard

Moving industry know-how

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

What each kind of moving estimate promises the customer, the 110% rule at delivery, and how to set each one up in MoveBoard.

  • 2 min read
  • Checked against MoveBoard
  • For owners & admins, sales
On this page

On an interstate household-goods move, the mover must give a written estimate before the move, and say whether it is binding or non-binding (49 CFR 375.401). The kind changes what the customer can be charged.

Binding

A binding estimate is a fixed price for the goods and services listed (49 CFR 375.403). At delivery the customer pays that amount — no more, no less — even if the shipment weighs more than estimated.

The price can change only when:

  • the customer adds goods or services after signing — the mover writes a new estimate or a change order before loading, or
  • the mover meets impracticable operations at delivery (a site the truck can't reach, for example), which can add charges up to a limit (15% of all other charges).

Non-binding

A non-binding estimate is a reasonably accurate guess (49 CFR 375.405). The final price comes from the actual weight on certified scales and the mover's tariff — it can be higher or lower than the estimate.

The 110% rule: at delivery, the customer never has to pay more than 110% of the non-binding estimate to receive their goods. Anything above that is billed afterwards, and the customer has at least 30 days to pay it (49 CFR 375.407, 375.805).

Example: non-binding estimate $4,000. The scale weight makes it $4,700. At delivery the most the mover can collect is $4,400 (110%); the other $300 is billed later.

Not to exceed

A not-to-exceed (also "binding not-to-exceed" or "guaranteed not to exceed") price is common practice built on the binding rules: the customer pays the actual charges or the ceiling, whichever is lower. If the shipment is lighter, they pay less; if it's heavier, they never pay more than the ceiling.

Flat rate

On local moves many companies sell a flat rate — one price for the whole job, whatever the hours. It works like a binding price for the services listed.

In MoveBoard

  • Each kind of move has a Default Estimate Type — Flat Rate, Binding or Non-Binding — on its settings page (for long distance: Settings › Long distance › Intrastate and Interstate). Change it on one order with the Estimate Type row of the Order card.
  • On a long-distance order, the long-distance summary on the Quote card says in one line what the estimate promises — for example Binding: the customer pays $… plus only services added later.
  • For a ceiling price, give the order a not-to-exceed percent: the ceiling is the quote plus that contingency percent — see Not to exceed. The crew's bill warns when it goes over.
  • After delivery, the long-distance bill of lading shows what may be collected at delivery and what is billed later.

Still stuck? A person will help.

Open a ticket from Support inside MoveBoard, or email us — we usually reply within one business day.