This post should not be considered legal advice. It is for educational purposes only.
I have extensive experience drafting client contracts for all types of creative entrepreneurs and small business owners. One industry that I tend to get a lot of incoming contract drafting requests from is the interior design space. Whether you’re just starting out or you run a large-scale interior design business, having a client contract on hand should be an essential part of your business.
It’s extremely important for every interior designer to require every client to enter into an interior design client contract. This agreement is sometimes referred to as a letter of agreement (although I do not like this term, in my opinion it’s a soft term used to describe a contract – use the word contract or agreement – then it’s clear to the client that they are entering into a legal agreement). Interior design contracts help protect both the interior designer and the client. Keep reading for a round-up of items that you should include in an interior designer client contract.
If you need help drafting your client contract or interior design contract template, email me [email protected]. I’d love to help!
5 Items To Include In An Interior Design Client Contract
Scope of Design Services
In this section you’ll want to include a detailed outline of the services you’ll be providing to the client during the design process, including the entire scope of work. Ideally, you’ll reference and incorporate the initial proposal you provide to the client. You should specify that the only services you will provide are the services outlined in the proposal and in the agreement. You will not be responsible for providing any services outside of those listed. I like to include a list of services that are not included. For example, no technology design, construction management, general contractor labor, or construction labor.
In this section, you should include each phase of the design project. I typically like to use four phases as an outline … Phase 1: Client Intake & Project Consultation; Phase 2: Layouts & Design; Phase 3: Purchasing; and Phase 4: Styling & Installation. Under each Phase, you’ll want to outline all of the services you’ll be providing during each phase of the project.
By outlining, in detail, all of the services you’ll be providing as the interior designer, you’re ensuring that you and the client are on the same page from the outset of the relationship. There are clear expectations on what services the client should expect to receive as part of the project. You’ll also want to include a rough project timeline in this section. Be sure to point out that any timelines are estimates and are subject to change.
Fees & Expenses
It’s extremely important that you include and outline in detail all payment terms. Including fees and any expenses and due dates, in the contract. The fees and expenses section of an interior design client contract typically includes several sections … Design Fees, Purchasing Fees, Warehouse Receiving, Inspection, Storage, and Delivery Fees, Reimbursable Expenses, and Billing.
The fees and expenses section will vary by business. But in general, it should include all fees that the client will be responsible for as related to the interior design services under the contract and when those fees are due.
The billing section should outline how the interior designer will bill the client. As the interior designer, are you charging a flat fee, charing by the hour, or a combination of the two? These details should be outlined in the billing section. You should also include due dates and any late fees here.
Termination
It’s important to include a termination section in your interior design client contract so that each party is aware of situations where the other party has the right to cancel the contract.
There are usually two basis in which a party can cancel a contract, either for cause or for no-cause. Terminating the contract for cause means that the terminating party is cancelling the contract because of a breach of a contract term by the non-terminating party. Terminating the contract for no-cause means that the terminating party is cancelling the contract because of no fault of the non-cancelling party, the cancelling party is simply deciding to terminate the contract on its own.
The termination section should address under what circumstances a party may cancel the agreement and how much notice is required by the cancelling party when terminating the contract.
You should also address any payments that may be outstanding or that are due to be refunded at the time of termination.
Client Responsibilities
The goal of an interior design client contract is to ensure that both parties are on the same page at the outset of the project. The client contract should be an all-incompassing document that each party can easily reference throughout the project when any questions about the project or the designer/client relationship arise.
It’s important to include a client responsibilities section in your interior design client contract to ensure that the client is aware of its role and responsibilities throughout the project. Examples of items that you should include in this section are pointing out the importance of communication, how you as the designer prefer to communicate with the client, any required access to the project site that client should provide to designer, and client’s responsibilities as related to hiring other parties associated with the project like general contractors, engineers, and other contractors.
Limitation of Liability
You should always include a section in your interior design client contract to limit your liability exposure. This section should outline items that the designer is not responsible for, including but no limited to, any imperfections in vintage or antique items selected for the project, any delays or damages caused by any supplier or delivery company, and any change of heart by client in regard to pieces that client previously approved.
This section should also include services that designer shall not be responsible or liable for. Including but not limited to, any design or modification of any HVAC, plumbing, electrical, or load-bearing structural elements.
How To Write An Interior Design Contract
Step 1: Hire an Attorney.
I highly recommend hiring an attorney to draft your interior design client contract. My biggest piece of advice is to hire an attorney to draft a client contract template for you to use with your interior design clients. With an interior design contract template, you have a base document that you can easily customize and tailor for each client and project.
I have extensive experience drafting interior design client contracts and client contract templates. My templates include everything you need to easily tailor your contract to each project and client. Email me at [email protected] for assistance.
Step 2: Outline the Parties to the Agreement.
If you decide to take on drafting your own interior design client contract, you’ll first want to identify the parties to the agreement.
Step 3: Outline the Scope of Services.
After identifying the parties, you’ll want to outline the scope of services being provided to the client under the agreement, in detail, as outlined above.
Step 4: Outline All Fees & Expenses.
It’s very important that you outline all fees and expenses in the contract so that the client is aware of all fees client will be responsible for under the agreement and when these fees will be due.
Step 5: Termination Clauses.
Each party to the agreement should be aware of how the individual party is able to get out of the agreement if needed.
Step 6: Outline Client Responsibilities.
The client should be able to reference the agreement and see all of the client’s responsibilities throughout the project timeline outlined in the agreement. It’s important for the client to understand that the client will play an important role in the project.
Step 7: Include Reasons for Putting Design on Hold.
You should include reasons that may trigger the designer putting the project on hold. For example, no response from the client for a certain period of time or client’s failure to make on-time payments of any fees owed under the agreement.
You should also outline what happens to a project when it is put on hold. And how a client can remedy such “on hold” status.
Step 8: Include Designer’s Right to Photograph
During and after interior design projects, the designer typically desires to capture aspects of the project via photographs or video to showcase designer’s work. You should outline the designer’s right to photograph and/or video the project in detail in the agreement.
Step 9: Intellectual Property
During interior design projects, there are intellectual property rights at play. For example, any rights to drawings and designs created by designer for the client. You should address these rights in the contract. For example, you can include language to state that any rights to any drawings, renderings, plans, or other design sketches remain the property of designer until payment is made in full by client.
Step 10: Include Limitation of Liability Clause
As discussed above, you should include a limitation of liability section in your interior design client contract to address limits of what designer can be held liable for under the agreement.
Step 11: Include Boiler Plate Sections
There are several boilerplate sections that you should include in your interior design client contract. These are general terms and conditions that are typically included in every contract. Including but not limited to the following sections, confidential information, exclusivity, force majeure (What is a Force Majeure Clause in a Contract), entire agreement, amendments, and governing law.
Last but not least, both parties need to sign and date the contract. On the client side, the financially responsible party should be the party to sign the agreement.
Questions? Shoot me an email at [email protected]
