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Binding vs non-binding estimates

The same dollar figure is a different obligation depending on whether the estimate is binding, non-binding, or binding not-to-exceed.

Non-binding

A non-binding estimate is generally an approximation. Final charges for listed services often depend on actual weight and the carrier’s tariff, subject to federal rules for qualifying interstate household-goods shipments.

Binding and binding not-to-exceed

A binding estimate generally holds the carrier to the quoted amount for the services listed, with room for additional-service charges described in the document and in 49 CFR Part 375.

A binding not-to-exceed estimate generally caps the listed services while allowing a lower charge if the shipment is smaller than estimated. Read the actual form.

Sources

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