NTE Basics - How Using Not To Exceed Amounts Can Help


An NTE or not to exceed is a valuable tool for controlling costs. When used properly, and NTE will help you save money, time, and create room for your contractor to give you a more quality repair.Later in this series we will cover the top 3 objections chain stores have for not using NTE's, strategies for determining the right NTE for your facility maintenance program, and the best practices for managing an NTE based program.Built in NTE managementIn this post we will go over the basics of an NTE and the problems they help solve.

NTE Benefits

You are a busy person. You have tens, hundreds, and thousands of stores relying on you. You manage contractors and budgets, field emails and phone calls, and attend meetings. Plus you have to keep your eyes on the horizon to identify potential future problems. You need to keep your store property free of any maintenance issue affecting sales, safety, and security, and your company's brand.An NTE, when created and managed correctly will free your time spent on micro-managing contractors and also save you money.Think about it this way. You receive 100 service requests every week. If you request a quote for each service request you are going to be reviewing 100 quotes. If your company requires multiple quotes, say 3 quotes per job. Now you have to find 900 contractors, review 300 quotes, select the contractor you want, train them on your expectations, and make sure the job gets done.It's a lot of work. Much more than what is necessary.An NTE removes most of this work from your process. Imagine giving your contractor a dollar amount for a repair and asking them to stay under it. If the repair will exceed the NTE, your contractor needs to call you for approval. If they don't, the additional cost is not approved. If you want to get a second or third opinion, you can request a quote at that time.The effectiveness of an NTE lies in setting the correct NTE and your process for setting expectations with your contractors. We will cover all of these details in this series.Series Table of Contents

  1. NTE Basics - How Using Not To Exceed Amounts Can Help
  2. Top 3 Objections for Not Using NTE's
  3. How to Determine the Right NTE
  4. How to Find Great Facility Mainenance Contractors
  5. Two Facility Maintenance Documents You Must Have
  6. Handling an NTE Increase