Binding Estimate
Logistics Term
Binding Estimate Definition
A binding estimate is one of the two most significant price quotes for a client in shipping. It states that the price indicated in an estimate is the charge you will pay at the end of the shipment and does not include any extra costs incurred. The shipping cost comes about after weighing the customer's assets.
Unlike the non-binding agreement, the binding agreement provides some form of security in terms of payment to the client. They are not charged more than the agreed-upon price under any circumstance. However, a drop in their asset weight would mean a drop in the payment unless it's a fixed binding estimate.
How to Get the Best Binding Estimate
To get the best estimates, ensure you receive quotes from multiple movers for comparison. In addition, it's of paramount value to familiarize yourself with the Federal Motor Carrier Safety Association (FMCSA) rules regarding a binding estimate.
First, ensure you understand the mover's description of movement and services. A binding agreement should be in writing; the carrier must award a copy to the client before shipping. The mover should also retain a copy to attach to the bill of lading. The second rule states that payment is mandatory upon delivery failure, to which the mover hoards the clients' assets. Other rules include:
- The mover has the right to refuse shipment if they feel duped.
- The provision of an unambiguous and straightforward contract.
- Its acceptance and clarity of negotiations around additional charges.
