Not to Exceed Estimate

Not to exceed contract.

 
The commitment by the vendor that the value of an interim estimate (plus contingency allowances), will not exceed the amount of the firm proposal and estimates to be submitted at a later date. A NTE value, however, may be adjusted upward or downward depending on the changes in the scope of work or in the associated specifications.
 

The best option of all binding and non-binding estimates is the Not to exceed estimate.
 

This means that if the actual weight of your shipment is more than the written estimate, you still pay the amount quoted; however, if the actual weight is less than the written estimate, you pay the lesser amount.
 

If you ask for a not-to-exceed estimate, you'll never pay a higher price than what's on the estimate. In fact, you're price can only go lower. Whenever you get an estimate, always ask for a not-to-exceed.