binding estimate left blank in contract

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binding estimate left blank in contract

Postby VA mover » Wed Nov 02, 2005 2:13 pm

I'd decided to use Wheaton/ Eureka for my move from VA to GA. Now they've sent me an estimate to sign that makes me uneasy....

It shows the proper amount for "estimated net charges." However, under the heading "binding estimate verification" it has been left BLANK. There's a spot to fill in the "total firm binding cost" and the total option binding cost." What do these terms mean, and why are they not filled in??

I am asking the mover about this. If they refuse to fill that in, should I get another mover?

Diane
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Location: Los Angeles

Re: binding estimate left blank in contract

Postby Diane » Wed Nov 02, 2005 2:25 pm

Hi - it appears that you have a Nonbinding estimate. These are the terms that a Wheaton rep said previously are used for Nonbinding, Binding, and Binding Not to Exceed estimates:

Nonbinding - Estimated Cost of Service
Binding - Firm Price
Binding Not to Exceed - Firm Price with Option

See http://www.movingscam.com/forum/viewtopic.php?t=5886 for these terms. It appears that your contract has slightly different terms on it, but it's clear that they correspond to these three categories.

Yes, in my opinion you should not go with a Nonbinding estimate, because you have absolutely no security about what the final charges will be. Two Wheaton reps (as well as reps from other van lines) have recently been reported to have told customers that they would pay no more than 110% of the Estimated Cost of Service, but that is not true. With this type of estimate, companies can and do bill customers for any additional charges above 110%, although they have to pay no more than 110% on delivery day.

Guest

Re: binding estimate left blank in contract

Postby Guest » Wed Nov 02, 2005 2:29 pm

Thanks very much for the info Diane! We'll see what happens.

asms29
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Joined: Mon Aug 01, 2005 9:37 pm
Location: raleigh, nc

Re: binding estimate left blank in contract

Postby asms29 » Wed Nov 02, 2005 2:37 pm

Just to help out, the Wheaton Contract has the price on the contract under the price there is two lines. One says Total Binding Price and the other line says Total Option Binding Price, if you are doing a GNTE price the customer puts the price on the contract in the Total Option Binding Price. The reason the customer fills in this price is so there is no confusion on what the cap is on the total GNTE price. Basically this means they are giving you a guarenteed price but did not tell you exactly how to fill in all the blanks.
Hope this helps

Diane
Posts: 15824
Joined: Tue Oct 07, 2003 12:18 am
Location: Los Angeles

Re: binding estimate left blank in contract

Postby Diane » Wed Nov 02, 2005 2:49 pm

Thanks - so, if a person has been given a Nonbinding estimate by Wheaton, the words "Binding Estimate Verification" will not appear on the contract at all? The contract will just say "Estimated Cost of Service"?

I think it's a good idea for the customer to fill in the amount so both Wheaton and the customer have the same understanding about the cost, but I also think that no customer could be expected to understand all this stuff without a tutorial. The variation in terminology from van line to van line is also a real problem in my mind. I don't know why they can't all use the same terms.

asms29
Posts: 14
Joined: Mon Aug 01, 2005 9:37 pm
Location: raleigh, nc

Re: binding estimate left blank in contract

Postby asms29 » Wed Nov 02, 2005 3:08 pm

That is correct, if it is just a non-binding estimate you will not have anything on the contract saying Firm Binding or Firm Binding with an option.

Diane
Posts: 15824
Joined: Tue Oct 07, 2003 12:18 am
Location: Los Angeles

Re: binding estimate left blank in contract

Postby Diane » Wed Nov 02, 2005 3:17 pm

Thanks. I'm going to revise my post on the sticky to include these slightly different terms that you and the customer have just posted, as well as the additional info about the customer having to write in the price for Binding and Binding Not to Exceed estimates. I assume that the customer doesn't have to write it in for Nonbinding estimates.

This is the link for my main summary of estimate terminology for the various van lines, if anyone wants to refer to it -
http://www.movingscam.com/forum/viewtop ... 1&start=15

asms29
Posts: 14
Joined: Mon Aug 01, 2005 9:37 pm
Location: raleigh, nc

Re: binding estimate left blank in contract

Postby asms29 » Wed Nov 02, 2005 3:20 pm

They actually do have to write the price in the non-binding line provided also, it is just a way to make sure the customer understands the charges that they are agreeing too.

Diane
Posts: 15824
Joined: Tue Oct 07, 2003 12:18 am
Location: Los Angeles

Re: binding estimate left blank in contract

Postby Diane » Wed Nov 02, 2005 3:27 pm

Good idea. I like the way Wheaton does things. The "Senior Savings Program" described on the website is a nice idea too.

So, just so I'm sure I'm posting the right terms, are these are the actual terms used in the Wheaton contract? (This is what the customer posted.)

Nonbinding - Estimated Cost of Service
Binding - Total Firm Binding Cost
Binding Not to Exceed - Total Option Binding Cost

asms29
Posts: 14
Joined: Mon Aug 01, 2005 9:37 pm
Location: raleigh, nc

Re: binding estimate left blank in contract

Postby asms29 » Wed Nov 02, 2005 3:42 pm

The binding price says- Total Firm Binding
GTNE says- Total Option Binding
estimated cost says-Total Non-binding

Diane
Posts: 15824
Joined: Tue Oct 07, 2003 12:18 am
Location: Los Angeles

Re: binding estimate left blank in contract

Postby Diane » Wed Nov 02, 2005 3:44 pm

OK, thanks - I am changing what I posted to be more accurate. Now I just hope that Wheaton doesn't change its contract anytime soon . . . :wink:

I do think it's somewhat of a misnomer to call a Nonbinding estimate a Total Non-binding cost because the total can't possibly be known. You might bring this up with someone if you have an opportunity. This phrasing could be one reason that some sales reps are misrepresenting it to customers.


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