Handling an NTE Increase


Welcome to part 6 of our NTE basics series…Handling an NTE increase.Not every repair will be able to be made within the NTE.In a perfect world, there are no repairs at all. We all sit around sipping cocktails on the beach and make comments about the amazing weather.increaseBut…this is the real world, and most of us aren’t even close to a beach.In today’s post, we are talking about handling NTE increases. We will cover the process, the information, and a key item to consider.We have been covering the basics for managing an NTE based facility maintenance program. If this is your first time here, make sure to check out all of our NTE related posts.

NTE Increase Expectations and Process

Set the expectation up front with your contractor. Absolutely no work may be invoiced for above the original NTE amount without first getting written approval. In most cases written approval will be an email or a note in your favorite maintenance automation software (wink wink).The process is only 3 steps.

  1. While your contractor is onsite, instruct him to call in to your office to let you know an increase will be needed.
  2. Have your contractor submit all required information by writing. Email is great.
  3. Review the NTE increase proposal.
  4. Approve the increase or reject it and ask for a quote.

An NTE increase is not a hard quote. This means, your contractor should still bill according to the time and material on his signoff.Simple right? Now let’s talk about the information you will require.

NTE Increase Information

The best relationships have one thing in common…incredible communication. Your contractor needs to provide you great information so you can make a great decision about the NTE increase.Most price disagreements between an honest contractor his customer are caused by a lack of information. Once everything is on the table, it is easy to make a decision.First off, you need to know the whole story. Your contractor should use the following method.

  • This is what you requested
  • This is what I need to do and why
  • This will be the condition of the repair when it is complete

The next item is the cost breakdown. It should include:

  • The time incurred including a trip charge with cost
  • The time proposed with cost
  • The material needed with cost
  • Total cost

Do Not Forget This

This last part is incredibly important. Do not miss this.You contractor is requesting an NTE increase in order to fix the problem on the first trip.Also, he is on site and on the clock while you are reviewing the information and making a decision. This means you are being charged according to your agreed upon hourly rate for every minute you spend.If you have all of the information you need, the decision should be simple. Be sure to respond quickly to NTE increases. Build this in as a priority in your work flow.By the way, FM Dashboard has NTE management built in so you don't have to rely on emails and notes.[button size="large" url="http://fmdashboard.com/free-demo" content="Schedule a demo to see it in person"]