C H A P T E R 1 8 .

P R E PA R I N G D E S I G N C O N T R A C T S 275

Who are the owners?

What is the exact location of project?
What spaces will be involved in the project?
Is the project new construction or a remodeling project?
What is the square footage of the project?
Does the owner occupy or lease the building?
Will designer/client CAD networking be required?
What is the budget?
What is the targeted completion date?
Are architectural floor plans available, or will the space need to be site-measured?
Have you worked with this client before?
Has the client worked with a designer before?
Will presentation graphics, such as perspectives, be required? What media is appropriate?
Does the current design staff have the time and experience to do this project?
Will consultants or additional staff be required in order to do this project?
If it is a remodeling project, what code requirements must be researched and met?
If it is new construction, who is the architect?
Who and how will the contractors be selected?
What kind of presentation will be required at preliminary and final meetings?
Will sample and image presentation boards be required?
If it is new construction, what code requirements must be researched and met?
Who will obtain permits?
How much demolition is expected?
How much supervision must be done on site?
Will the project go out to bid, or has a purchasing agreement already been established?
Will the project be completed all at once or be done in stages?
What portion of the construction or interiors project will be handled by the client?
Does the client require moving services, or will the client take care of this himself or
herself?
How much existing furniture will be used?
Who is responsible for production of construction documents?
What styles of new furniture are preferred?
Are new architectural finishes to be selected?
Are custom cabinets, custom furniture items, or treatments expected?
Are office systems furniture (or other furniture) evaluations required prior to specifica-
tions?
Will art, graphics, accessories, interior plantscaping be required?
Note: This list, of course, is not all-inclusive.

 FIGURE 18-2. Typical questions that the designer should ask prior to preparing a
design contract for services.

and the designer. (The author strongly cautions, however, that such simplistic
contract language not be used.)
Contracts in residential design projects used to be relatively short—per-
haps a few pages. To safeguard the designer in today’s litigious climate, longer
contracts or agreements are recommended. They may still be written less for-
mally than a commercial contract using simpler language and may look more
like a letter than a contract. However, they still must contain the parts discussed
earlier in this chapter. Commercial contracts are almost always relatively long
and detailed, running about 4 pages at least. Some sample formal contracts
276 PA R T I V. M A N A G I N G T H E B U S I N E S S ’ S F I N A N C E S

used in commercial projects and architecture can even be as long as 12 pages,

because detailed clauses are needed to protect the interior designer by clearly
spelling out all the services, duties, and responsibilities of the designer, the
client, and any other parties to the contract.
Both residential and commercial contracts have the same basic parts.
Figure 18-3 shows a list of the common items found in a contract for inte-
rior design services. Some projects do not require the entire list of terms. A
very complex project may actually include terms not shown in the figure or
discussed in this chapter. We will discuss each item in the list as they relate to
residential and commercial projects, noting any differences between the two.
These items are discussed in the typical order in which they would appear in a
contract. Refer to Figures 18-4 through 18-7 for sample contracts.

1. Date. Contracts must be dated with the day, month, and year.
2. Client’s name and address. It is very important for the name of the client ob-
ligated to the contract to be clearly stated at the beginning of the contract.
In residential design, it is important for the husband’s and wife’s names to
be on the contract and for both to sign the contract. This obligates each in
the event of divorce, separation, or death of either of the spouses.
In commercial design, the name of the person having the authority to
contract for the business should be listed, and the contract should be signed
by that person. The address of the home office is usually listed when the
business has several locations.
3. Detailed description of project areas involved. To avoid confusion and argu-
ments over extra charges or threats of breach, it is important for the project
areas involved to be detailed at the beginning of the contract. In a residential
project, this may mean including a clause as broad as “your residence at
1234 Hummingbird Lane,” which means the designer is responsible for the
scope of services to be defined in the contract for the entire house. If the
services relate only to the living room, the contract should say this.

1. Date
2. Client’s name and address
3. Detailed description of project areas involved
4. Detailed scope of services to be provided
5. Detailed purchasing arrangements
6. Price guarantees
7. Method and payment of compensation
8. Reimbursements for out-of-pocket expenses
9. Charges for extra services
10. Designer responsibility disclaimer
11. Charges and responsibilities of third parties
12. Photographic and publishing rights
13. Termination of contract
14. Responsibilities of the client
15. Assignment and delegation
16. Ownership of documents
17. Time frame of the contract
18. Matters of arbitration
19. Mutual understanding and legality
20. Conditions and amount of retainer
21. Signatures

 FIGURE 18-3. A checklist of typical types of clauses found in design contracts.

C H A P T E R 1 8 . P R E PA R I N G D E S I G N C O N T R A C T S 277

August 31, 200x

Mr. and Mrs. Michael Hamilton

1479 E. Stanford Drive
Hazelton, Rhode Island
Dear Mr. and Mrs. Hamilton:
This letter will confirm our agreement concerning the professional services we will provide for your residence at 1479 E.
Stanford Drive, Hazelton, Rhode Island. It is understood that the project specifically involves the living room, dining room,
family room, and kitchen.

We will provide the following services:

A. Design Concept Services
1. Measure the existing spaces and prepare sketches or take photos of the existing interior.
2. Discuss your specific needs and preferences.
3. Prepare conceptual furniture floor plans.
4. Make preliminary selections and color schemes for new furniture items to be purchased, as well as selections for
walls, floors, and window treatments.
5. Prepare a preliminary budget for the project.
6. Review all of the above with you.
B. Purchasing Services
1. Upon approval of the preliminary selections mentioned above, we will prepare finalized specifications and pricing
proposals.
2. It is understood that all items specified by the interior designer will be purchased only through the interior
designer, should you wish to purchase them.
3. All items to be purchased will be detailed as a specifiction and will require your signed authorization, as well as
75% of the total price for each item prior to placing the order. The balance, including applicable taxes, shipping,
and handling fees, are due upon delivery.
4. The price for each item shall be the regular or normal wholesale or cost price to the interior designer plus
% purchase fee plus shipping and handling fees at actual cost. The fee is in addition to Design Concept and
supervision fees, to be described below.
5. As might be necessary, the designer will provide counsel and guidance in the selection of necessary contractors
to perform the required work. Client will enter into any contract for these services directly with the contractor.
6. Periodic visits to the residence will be made to observe that the work is being done in accordance with standard
acceptable practice. Constant on-site observations are not part of the designer’s responsibilities.
C. Compensation
The fee for the concept and supervision services described will be . Additional services requrested by
you that are beyond the scope of services outlined in this agreement will be billed separately at per hour.
Billing for services shall be in the following manner:
20% upon signing the contract (retainer)
40% at the end of the preliminary review meeting
30% when construction and furniture orders are placed
10% upon completion of the project
All payments are due ten days after receipt of invoice.

The above fee does not include client-approved expenses for long-distance telephone calls, out-of-town travel to
shop for resources, and special renderings. These charges, if required, will be billed separately at our actual cost plus
10%.
D. Other Matters
1. The drawings and specifications are intended for design concept only and cannot be used for construction or
architectural purposes.
2. The designer does not include any responsibility for the design of structural, electrical, plumbing, heating, or
other mechanical systems that exist or might be needed for the project.
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3. The drawings and documents prepared by the interior designer remain the property of the design firm and
cannot be used by you for any purpose other than the completion of the project by the interior designer.
4. We will perform the services described in good faith but cannot be responsible for the performance, quality, or
timely completion of work by others. Further, we shall not be responsible for any changes to the project that the
client or contractor(s) make without informing the designer.
5. You are expected to grant reasonable access to the premises for the designer and the designer’s agents, as well
as to contractors required to perform the agreed-upon work. By signing this proposal, you understand that the
peace and privacy of your home may be disrupted for the time required to perform the work.
6. This proposal may be terminated for any reason by either the client or the designer, provided ten days’ written
notice has been given. In the event of termination by the client, the client will pay the designer for all work done
and expenses due up to the date of termination.
7. Upon completion of the project, the designer may require permission to photograph the project for the firm’s
records. The interior designer shall not use the photographs for promotional purposes without the permission
of the client.
8. This agreement is the complete statement of understanding between the interior designer and the client. No
other agreements have been made other than those stated in this agreement. This agreement can only be
modified in writing, signed by both parties.

It will be our pleasure to begin your project as soon as we have received a copy of this proposal signed by both of
you and a check for the retainer. We appreciate your selection of our firm for your interiors project and look forward to
working with you.
Sincerely yours,
EastCoast Interiors, Inc.

(Owner) Mr. Michael Hamilton

Mrs. Betty Hamilton

 FIGURE 18-4. A sample design contract for a residential project.

January 30, 200x

John Smith, Chief Executive Officer
Smith Serve, Inc.
1776 N. Adams
Boston, MA

Dear Mr. Smith:

We are pleased to submit the following proposal of professional interior design services for the space planning and interior
design of your new office in Amherst, Massachusetts at .

SCOPE OF SERVICE
A. Programming and Schematic Design
1. Meet with you and/or selected members of your staff to determine all requirements that will affect the space
planning and interior design of your project.
2. Obtain floor plans from the architect.
3. Inventory existing equipment that might be used in the new space plan.
4. Conduct interviews with staff to determine equipment needs and adjacency requirements.