When you submit a request for an NTE increase on a job, there are two different paths that you take that are dependent on the price of the job.
A small NTE increase is anything let's less than $100 over the NTE. For example, an NTE of $250 with a request for $340 would be considered a small increase.
A large NTE increase is anything that's more than $100 over the NTE. For example, an NTE of $250 with a request for $360 would be considered a large increase.
The difference between the small and large increase is flexibility that we have. We have agreements with many of our customer that allows us to approve work up to a certain amount over the limit depending on a few factors. If it's a small increase, we can usually make a decision on a quote without involving the customer directly. This allows us to approve these quotes faster.
If it's a large increase request, then we will need to get formal approval from customer/owner of the property. That's why these requests require more information, pictures, etc.
When small requests are approved, the NTE limit is adjusted and you are still paid your time and materials based on your hourly rate and the time on-site. When large requests are approved, the job is converted to a flat price and you will be paid your quoted amount minus the Lula fees (12%).