NTE stands for “not to exceed.” In facility maintenance, an NTE is the maximum amount a service provider can charge on a work order without getting further approval. If the work can be done within the NTE, the provider goes ahead. If it will cost more, the provider stops and submits a quote.
Why NTE Limits Exist
Multi-site businesses receive many service requests every day. Approving each one by hand would slow repairs to a crawl. An NTE lets routine work move quickly while keeping larger spending under control.
- A dripping faucet or a stuck door can be fixed on the first visit.
- A failed compressor or a roof section that needs replacing is quoted and approved before work starts.
How NTE Limits Are Set
NTE amounts are usually set by trade and by priority. For example, a business might allow a higher NTE for an emergency HVAC call in summer than for a routine handyman visit. Some programs also set different limits for different regions, because labor costs vary from market to market.
Good NTE limits are:
- High enough that most routine repairs are finished on the first visit
- Low enough that major work is always reviewed before it starts
- Reviewed regularly against actual invoices
What Happens When Work Exceeds the NTE
The provider diagnoses the problem, makes the site safe, and submits a quote with photos and an explanation. The client or the facility management company approves, rejects or asks for another option. Once approved, the NTE on the work order is raised and the work continues.
Common NTE Mistakes
- Setting one NTE for every trade. A single limit is too high for small trades and too low for large ones.
- Never reviewing limits. Prices change; limits should too.
- No photos with quotes. Without photos, approvers cannot judge whether the extra work is needed.
- Approving by phone without a record. Every approval should be written on the work order.
How Facility First Uses NTE Limits
Each Facility First program sets approval limits with the client, by trade and priority. Routine work proceeds within the limit. Anything above it is quoted with photos and approved in writing before work continues, and every decision is recorded on the work order.
Frequently Asked Questions
Is NTE the Same as a Quote?
No. An NTE is a spending ceiling set before the work is diagnosed. A quote is a price for a defined scope, usually given after diagnosis.
Does the Provider Always Charge the Full NTE?
No. The provider charges for the work done, up to the NTE. The NTE is a ceiling, not a price.
Who Sets the NTE?
The client, usually with its facility management company, based on the trade, the priority and past costs.