What NTE means
NTE, not to exceed, is a price cap on a work order or time and materials job. The contractor needs approval before going over it.
Also called not to exceed, not-to-exceed amount.
Where it shows up in your business
Property managers set NTEs on most work orders. If the job will run over, stop and get approval in writing before you go past the cap, or expect to eat the difference.
Work it out
- Free template: Work order template
- Money guide: Flat rate vs time and materials
- Money: Money guides for contractors