Federal law regulates the business of carriers who transport household goods from one state to another. Federal laws and the regulations adopted by the Federal Motor Carrier Safety Administration (FMCSA) come into play to advise customers of their rights, including the right to have a mover provide a written estimate of the cost of the move. The estimate may be either binding or nonbinding. With each kind of estimate, certain rules apply.

Non-Binding Estimate Defined

A non-binding estimate is a written no-cost estimate that allows a customer to approximate the cost of a move. It does not guarantee the actual cost that will be charged to the customer when the household goods are delivered at their destination. Non-binding estimates are intended to be reasonably accurate, but not exact. Accordingly, the actual amount charged upon delivery usually exceeds the estimated amount. The FMCSA suggests that a good rule of thumb is that a customer should be prepared to pay 10 percent more than the estimated amount at the time of delivery.

Calculation of Costs

The mover must base the non-binding estimate on the estimated weight of the shipment and the services provided. The estimated cost of shipping the goods must be calculated according to the mover's published schedule of rates and tariffs that are maintained at the mover's offices. The schedule must be made available upon the customer's request and must be clear enough that a customer could use the schedule to calculate the cost.

Statement of services

The FCMSA requires that a non-binding estimate must clearly identify the entire shipment and must specify what services will be provided. If the mover and the customer disagree as to the amount of furniture and furnishings tendered as compared to that which was included in the non-binding estimate, the mover may either re-affirm the prior nonbinding estimate or negotiate a new non-binding estimate.

Additional Services

If, after the goods are in transit, a customer requests that the mover provide additional services, the customer will be billed for the additional services at least 30 days after the goods are delivered to their destination. If the mover determines that additional services are needed after the goods are in transit, the customer has at least one hour to determine whether to accept or reject the suggested additional services. If the customer agrees to the suggested additional services, the mover must execute a written agreement that specifies the new services to be rendered. The customer must sign the new agreement, and it must be attached to a bill of lading, which is the mover's receipt for the goods and the contract for transportation. That new agreement becomes a part of the contract between the customer and the mover.

Record of Documents

The FCMSA requires a mover to retain records of all estimates for each move performed for at least one year from the date of the estimate.

Copyright 2010 LexisNexis, a division of Reed Elsevier Inc.