Binding vs non-binding estimates: what to send and when

Customers don't care what an estimate is called. They care whether the final bill will match the number you gave them. Choosing the right kind of estimate, and explaining it in plain words, prevents most billing fights before they start.

This is a general guide, not legal advice. Interstate moves follow federal rules (FMCSA, 49 CFR Part 375). Local moves follow your state's rules, which vary. Check with your state's moving association or regulator.

Non-binding estimate

A non-binding estimate is your best guess. The final price is based on the actual weight or time and the services you actually did. For interstate household moves, the federal rules say the customer only has to pay up to 110% of the non-binding estimate at delivery to get their goods. Anything above that can be billed, but they get at least 30 days to pay it.

• Good for: moves you couldn't survey, or customers who aren't sure what's going.
• Risk: if your guess is low, you either eat the cost or wait to collect it.
• Tip: write down what the estimate is based on (rooms, item list, stairs) so changes are easy to explain.

Binding estimate

A binding estimate is a fixed price for the items and services listed. If the customer adds items or services on move day, you can charge for those, but the price for what was listed stays the same even if it weighs more or takes longer than you thought.

• Good for: moves you surveyed in person or by video, and customers who want certainty.
• Risk: a bad survey costs you money.
• Tip: list every item that counts. "Contents of garage" is not a list.

Binding not-to-exceed

Sometimes called a guaranteed price or a "not-to-exceed" estimate. The customer pays the lower of the binding price or the actual cost. It's the most customer-friendly option and a strong closer when you're competing with lower bids.

How to choose

• No survey, small local move: hourly rate with a clear minimum and a written non-binding range.
• Surveyed move with a clear item list: binding or not-to-exceed.
• Customer still deciding what to take: non-binding, with a note to update the estimate once they decide.
• Long-distance move: always survey (video is fine) and always give the required federal paperwork.

Explain it in one sentence

Whatever you send, put one plain sentence at the top: "This is a binding estimate: your price will not go up unless you add items or services." Or: "This is an estimate based on 3 movers for about 6 hours; you pay for the actual time." Customers who understand the estimate are much less likely to dispute the bill.