Binding, non-binding, not-to-exceed: the three estimates and what each one costs you
Every written estimate for an interstate move is one of exactly three things. Carriers are required to say which, in writing, before you sign. Most people never ask, and then discover the difference on delivery day when a number that was supposed to be settled is not settled at all.
The three types are not variations on a theme. They allocate the risk of an inaccurate weight estimate in three completely different ways, and the right choice depends far more on how your finance team works than on how far you are moving.
Binding: the price is the price
A binding estimate is a fixed price for the inventory and services written on it. If the carrier guessed 11,000 pounds and the scale says 13,400, the invoice does not move. That is the whole point, and it is why a binding estimate is usually priced with a margin for error built in.
The trap is scope, not weight. A binding estimate covers what is listed. If your team decides two weeks later to bring the fourth-floor storage room after all, that is not a free addition. The carrier has three options at that point: re-estimate in writing before loading, refuse the extra items, or load them and convert the shipment to a different basis. All three are legitimate; only the first is comfortable.
Binding works well when a capital budget has already been approved and the number in the board paper has to survive contact with reality. It works badly when the inventory is still moving around six weeks before the date.
Non-binding: an informed guess, settled by the scale
A non-binding estimate is the carrier's best approximation. The final invoice is based on actual weight and services and can land above or below it. The protection you get is a cash flow rule rather than a price rule: at delivery the carrier may collect no more than 110 percent of the estimate, and anything beyond that is billed later.
People hear the 110 percent rule and relax. They should not. It limits what you pay on the day, not what you owe in total. A 20 percent overrun on a non-binding estimate is still a 20 percent overrun; you simply pay part of it a month later.
Non-binding does have a real advantage, and it is the reweigh. If the weight looks wrong you can request a reweigh before the shipment is unloaded, and charges are then based on the new figure. Ask before unloading begins. Once the truck is empty the opportunity is gone.
Binding not-to-exceed: the one most commercial clients want
A binding not-to-exceed estimate sets a ceiling and keeps the floor open. If the shipment weighs more than estimated, you pay the estimate. If it weighs less, you pay the lower actual tariff charges. All of the downside protection of binding, none of the guaranteed overpayment.
There is no catch beyond the usual one: it holds for the scope on the estimate. Add a floor, add a lab, add six months of storage, and you are looking at a revised estimate. Carriers who offer not-to-exceed pricing are generally confident in their surveying, which is itself a useful signal.
What to ask before you sign anything
- Which of the three types is this, in writing, on the first page?
- What inventory and services is the estimate based on, item by item?
- What accessorial charges could apply: stair carry, long carry, shuttle, storage handling?
- What is the valuation basis, and what would full value protection cost?
- If this is non-binding, at what point can we demand a reweigh?
A carrier who cannot answer those five questions in a single email is telling you something about how the rest of the project will run. The estimate type is the cheapest piece of due diligence available to you, and it takes about four minutes.
Figures in this article are sample planning ranges prepared for a demonstration site, not quotations. Regulatory references are summaries, not legal advice.
