Binding Not-to-Exceed Moving Estimates Explained

Start with the federal estimate type

For an interstate household-goods move, the written estimate must state whether it is binding or non-binding. A binding estimate is an advance agreement that guarantees the total cost for the quantities and services shown. A non-binding estimate is the mover's approximation; final charges are based on actual weight and the tariff provisions in effect.

See current 49 CFR 375.401. The label “not-to-exceed” does not replace the document's required binding or non-binding statement.

Read the operative sentence, not just the label

Find the sentence that says what amount applies, which shipment and services it covers, and what happens if the estimated scope differs from the actual move. If the document uses “not-to-exceed,” ask the company to explain that sentence in writing. Do not assume a phrase means the same thing across different estimates.

What a binding estimate must identify

A binding estimate for an interstate move must be written, state on its face that it binds both parties, say that its charges apply only to the services specifically identified, and clearly describe the shipment and services provided.

Before loading, compare the listed inventory, origin and destination, dates, access conditions, packing, storage, and every service line. Current 49 CFR 375.403 sets out the binding-estimate requirements.

When the written price can change

If additional household goods are tendered or additional services are requested before loading, the mover may reaffirm the binding estimate, prepare a new binding estimate, or agree in writing to treat the original as non-binding. Once the shipment is loaded without a new estimate, federal rules generally treat the original binding estimate as reaffirmed.

After the bill of lading is issued, added services require notice and written documentation under the federal rule. Keep the original estimate and every signed attachment together. The rule also addresses limited impracticable-operations charges at delivery; see the cited regulation for the conditions and calculation.

Questions to ask before you sign

• Does this document state that it is binding or non-binding?
• Which goods, services, dates, and access conditions are included in the stated price?
• What does the “not-to-exceed” sentence say will happen if the shipment or services differ?
• What changes require a new written estimate or signed attachment?
• Which conditional services are included, extra, omitted, or unclear?
• Who is the carrier, and is a broker involved?

Interstate and local moves

The federal rules linked here apply to interstate household-goods moves. Local and intrastate moves can follow different state rules and may use different pricing approaches. Check the route of the move before applying an interstate rule to a local estimate.

Frequently asked questions

Is binding not-to-exceed a federal estimate type?

Federal interstate moving rules require a written estimate to state whether it is binding or non-binding. They do not create a separate federal category called binding not-to-exceed. Read the terms on the estimate you received.

Can a mover charge more than a binding estimate?

For the goods and services identified in an interstate binding estimate, the mover generally may not collect more than the binding amount after loading unless a documented federal exception applies. Added goods, added services, and written changes can matter.

Does the 110% rule apply to a binding estimate?

The 110% delivery-day rule concerns collect-on-delivery shipments under non-binding estimates. A binding estimate has different federal delivery rules. See the exact estimate type before applying either rule.

Does this apply to a local move?

Not automatically. The federal rules discussed here apply to interstate household-goods moves. Local and intrastate moves can follow state-specific rules.