Revolutionizing Work Order Efficiency: Why Strategic NTE Setting is Key

In this Q&A, Senior Manager of Marketplaces Program Management and Operations, Stefanie Teintze, and Marketplaces Project Manager Jennifer Sanchez, break down Not-to-Exceed (NTE) limits, explaining what they are, why they are important, and how ServiceChannel’s approach to setting NTEs ensures more efficient work order management and fosters stronger relationships between clients and service providers.

What are Not-to-Exceed limits? Why are they important? 
 
Stefanie Teintze: NTE limits are predetermined maximum amounts that a provider can invoice for a particular service or repair. If the provider anticipates that the repair will exceed the predetermined NTE, they must request an increase before completing the work.

NTEs are crucial because they directly influence work order (WO) automation, provider performance metrics, and invoicing. When NTEs are set too low at dispatch, it often results in delayed resolutions and additional costs.

What makes ServiceChannel’s approach to setting NTEs unique? 

Stefanie Teintze: Our team’s approach to setting NTEs is unique because we drill down to the problem type, rather than relying solely on the general trade or Service Level Agreement (SLA) priority. By leveraging millions of data points, we analyze industry sector, region, and trade-level differences to determine the ideal NTE. Recognizing that data alone doesn’t capture all problem code nuances, we also rely on our team of Trade Specialists and FM professionals to make informed NTE adjustments.
 

How does setting NTEs based on detailed Issues Lists — rather than broad trade categories — enhance the effectiveness of work order management? 

Stefanie Teintze: Setting a single NTE value across an entire trade category is not an effective practice because it fails to account for the wide variability of issues within that category. A detailed Issues List allows for NTEs to be tailored to specific problem types, reflecting the actual complexity and cost of the work. This approach leads to better alignment between the scope of the issue and the budget. Adopting this best practice provides clients with two key advantages:

1. Improved Cost Accuracy: A single NTE for an entire trade category can lead to over- or underestimation. For instance, a loose toilet seat may require a lower NTE compared to an emergency plumbing overflow, which is more complex and costly.

• Faster Resolution Times: Accurate NTEs based on detailed Issues Lists empower technicians to act promptly, reducing delays caused by needing approvals for additional funds. By categorizing problems with detailed granularity, technicians can arrive equipped with the right budget and tools for the job, reducing the likelihood of incomplete work or return trips.

Tell us how your team helps guide customers in setting the most accurate NTEs. 

Jennifer Sanchez: We guide clients in setting their NTEs as part of a broader Issues List optimization process. This step is crucial for all new ServiceChannel Managed (SCM) clients during the implementation phase, as the Issues List drives work order dispatches across their operations.

Our team brings unique expertise to the table, as many of us, including Stefanie and I, were former ServiceChannel (SC) and SCM clients. This firsthand experience, coupled with our passion as self-proclaimed “Issues List geeks,” allows us to thoroughly review every aspect — areas, problem codes, trades, SLAs, and NTEs — to ensure they align with the client’s specific industry and operational needs.

As part of this collaborative process, we review all suggestions and edits with the client to ensure alignment and focus on achieving the best possible outcomes for their facilities, operations, and service providers. Once finalized, the updated Issues List is loaded into their SC platform instance.

From there, we continue to monitor KPIs and adjust as needed, treating the Issues List as a living document. This allows us to respond to changes and ensure the system remains optimized for long-term success.
 

What role do NTEs play in strengthening relationships between customers and service providers? 

Stefanie Teintze: Properly set NTEs, aligned with industry standards and best practices, foster trust between clients and service providers. When providers are given fair and realistic thresholds, they can start working immediately, increasing the likelihood of a “first-time fix” scenario.

Our data shows that even when higher NTEs are set, providers are still more often invoicing below the threshold. Most repairs are completed efficiently, without using the full NTE amount. If a larger repair requires an NTE increase, clients can still request a detailed proposal from the provider before granting approval.

Over time, consistent and fair NTE practices build predictability for providers, helping them understand what to expect from their clients. This reduces friction and streamlines workflows.

Well-set NTEs improve efficiency, reduce delays, and strengthen the overall partnership between clients and providers.

What are some of the benefits of adjusting NTEs based on the urgency (SLAs) of work orders? 

Jennifer Sanchez: AdjustingNTEs based on the urgency or SLA of work orders is a more effective practice, offering greater flexibility and efficiency than setting them solely by trade. By aligning spending thresholds with the urgency of a repair, this approach ensures that resources are allocated where they are needed most.

For example, non-critical repairs can be assigned lower NTEs to keep costs in check, while urgent, high-priority repairs — such as a refrigeration unit or cooktop failure in a restaurant— can have higher NTEs to enable swift resolutions and minimize downtime. This ensures critical operations are maintained without unnecessary delays.

This approach offers customization to meet specific needs, even when detailed problem codes are not used.

Does NTE setting change depending on the industry? If so, how? 

Jennifer Sanchez: The data reveals variances by trade, depending on the industry and sector. For instance, within the restaurant industry, we observed that NTEs tend to be higher for Full-Service Restaurants compared to Quick-Service Restaurants. Similarly, in the retail sector, luxury retailers often report higher NTEs than their peers in the broader retail industry. To provide even deeper insights, we’ve developed a dynamic dashboard that allows us to drill down into regional and state-level differences, offering a comprehensive view.

Are there any other benefits of setting NTEs accurately? If so, can you tell us about those benefits? 

Stefanie Teintze: If clients are experiencing high provider decline rates, it’s worth reviewing their NTEs and considering an NTE optimization. This is especially important if their Issues List is otherwise detailed and robust. Clients who consistently set low NTEs often face increased provider declines, particularly for emergency work orders.

Another benefit of accurately setting NTEs is achieving the ideal balance of work orders with and without proposals. The optimal proposal rate varies based on client preferences and bandwidth. For some, a 15% proposal rate is a healthy target, while others with less bandwidth may aim for 10% or lower.

What is the most common misconception about NTEs?

Stefanie Teintze: A common misconception is that lower NTEs give clients more control over costs. Unfortunately, lower NTEs are more likely to increase costs, prolong resolution time, and force clients to manually review and approve every step of the WO lifecycle.

For example, if an HVAC repair ticket is dispatched with a $250 NTE: Provider A declines the ticket due to insufficient NTE, the ticket then gets reassigned to Provider B. If Provider B declines, the ticket continues to cycle while the asset remains down. If/when a provider eventually accepts the ticket, they may still need to request an NTE increase before starting the repair. If the client’s authorized approver does not respond promptly, the provider may leave, incurring a trip charge while the asset remains unrepaired. This creates unnecessary delays, added costs, and frustration for both clients and providers.

What has surprised you most about working with clients on setting NTEs?

Stefanie Teintze: The most surprising aspect has been the measurable difference in KPIs between clients who optimize their NTEs and Issues List and those who choose not to. The results have been undeniable.

When we first introduced our “Standard Sample Issue Lists,” tailored by industry vertical for SCM clients, we expected a positive impact. These lists were meticulously crafted and detailed to ensure each problem code was correctly routed to the appropriate trade, and that NTEs and SLAs were aligned with insights from our SMEs (subject matter experts) and platform data. However, we did not anticipate just how significant the impact would be.

 For example, in our restaurant client group, those who adopted the “Restaurant Sample Issues List” saw reduced average invoice costs by 15-25%, improved resolution times by 25-45%, and increased SLA compliance by 10-12%.

Ready to learn more about how accurate NTE settings can help you enhance cost accuracy, reduce delays, and improve overall operational efficiency? Reach out to us today!