A Brief Introduction About the Interior Design Contract
Interior design is the process of designing and decorating the interiors of buildings aesthetically and functionally. Professional designers are hired on a project basis for the same. An agreement entered into between the interior designer and the client for this purpose is an interior design contract.
The contract highlights the scope of the work, design solutions, client budgets, designer fees, and other obligations, rights, and responsibilities of the concerned parties.
The main agenda of executing this agreement is to have a transparent view of all the terms of the project beforehand and to avoid any complications and misunderstandings later on. It also enables both parties to visualize the project on the whole in terms of the extent of work, look, design, costs, overheads, etc.
It enables the client to understand the costs involved and allows for restructuring the scope before the commencement of the project. It protects the designer from any infringement of copyrights of their unique design solutions. Further, it also protects both parties in the event of any change of expectations or non-performance of obligations.
Who Takes the Interior Design Contract?– People Involved
The contract is made between an interior designer and their client. The designer agrees to make a functional design catered to the tastes and preferences of the client and to execute the project with their team, which may include third-party contractors. The client agrees to the terms laid out by the designer, provides them with access to space, and also agrees not to misuse the designs.
The designer and client can both be either individuals or organizations. In the case of an organization, the contract holds the firm responsible and not just the individual working on the project.
Purpose of the Interior Design Contract– Why Do You Need It?
The primary purpose behind the contract is to have a comprehensive written document with all the details of the project in place. Interior design assignments are very complex and have a lot of small intricate details involved. The clients trust the designers with their space and have numerous expectations. The designers work on a customized design, unique to the client and their space, and they put in a significant amount of time and resources into the project. As such, both parties need to have this contract in place.
The designer needs to be protected from the changing expectations of the client. It helps the project run smoothly and avoid disagreements with the client. On the other hand, it helps the client be aware of all project details and their obligations. They know what to expect from the designer and the project costs. It enables them to participate in the project and keep track of it actively.
The contract also lists out the phases of the project and the timelines. This holds both parties accountable and enables the work to be planned and performed on a timely basis. It also helps the client prepare the necessary finances at various intervals as and when it will be needed.
Lastly, the project may involve external contractors who are hired for specific periods. The project timelines must be met to have a smooth flow of work and to avoid overruns.
Contents of the Interior Design Contract
Interior Design Contract Example
Since the main purpose of the contract is transparency, it must be a detailed document containing all particulars of the assignment. Hence, the contract must include the following:
- Details of the parties involved in the project and their signatures
- Scope and extent of work. The details of the space and areas included in the assignment. The square footage of the space, etc. can be mentioned.
- Design drafts with drawings of the space, plans for the furniture, wall paint colors, etc.
- Estimated project timelines along with details on project phases and expected completion dates.
- Details on the requirement of third-party contractors for parts of the work. In the case of separate payment terms for the contractors, the same should be mentioned.
- Estimated budgets for each phase of the project and expected overheads.
- They have detailed payment terms and methods. The timelines for each payment must be mentioned. The designer can also include a “no price guarantee” clause to protect themselves from any increases in material or workforce costs. This clause should also include a breakdown of the expenses by phase and must also include details on the designer’s fees, reimbursement of out of pocket expenses, and taxes involved.
- Schedule of materials required for the project and details relating to whom the purchase and procurement liability will fall upon.
- Obligations of both parties. The designer is held liable to complete the project on time and to the desire of the client. The client is obligated to grant access to the place and provide an environment for the smooth running of the project.
- Clauses for modification and termination of the agreement. The reasons where either party may need to edit or end the contract and the proceedings for the same need to be listed.
- Contractual terms are specific to an interior design contract regarding site safety on the job, damages, contract expiration, etc.
- Protection of the right to the intellectual property of the designs by the designer.
- Necessary permits for the photography and publicity of the completed space.
- Effects in the case of non-compliance from either party and measures for conflict resolutions.
How to Draft the Interior Design Contract?
Interior Design Contract Sample
When preparing an interior design contract, it is important to keep it simple. The clients will not necessarily understand the technical jargons, and its use will be counterintuitive to the purpose of the contract.
When drafting the agreement, you should keep the following in mind:
- The expectations of both the designer and the client should be carefully discussed and presented.
- The agreement cannot overwrite any of the existing laws. It is essential to see the local and state laws to ensure that no violations are made.
- There can be project delays due to unforeseen and uncontrollable circumstances. Neither party can be held responsible for the same.
- The entire scope of work, phase planning, and budgets are presented, meet the expectations, and are understood by both parties in the same way.
- The client must have the necessary permits to execute the project or the process to obtain any such licenses must be listed out.
- The contract cancellation policies should be detailed and agreeable to both the involved participants.
- The Rights and Obligations of the parties of each party involved must be listed out in terms of the scope of the project.
- The events in case of any non-performance or defaults must be stated to avoid litigations.
Negotiation Strategy
When negotiating an interior design contract, the rights of both parties must be protected. The necessary permits needed for the operations and the hiring of contractors should be discussed.
These assignments are generally for long durations and can face several instances requiring modifications to the terms agreed in the contract. There can be time and budget overruns and delays in payment. It is important to discuss the likelihood of these situations upfront to ensure a smooth flow during the project. The expanse of work, costs, and other terms should be agreeable by both parties.
Benefits & Drawbacks of an Interior Design Contract
As highlighted in multiple instances throughout the article, the benefits of having the contract in place are as follows:
- It is a comprehensive document and contains all the particulars of the project. It leaves behind no room for any disagreements.
- It clearly outlines the scope and costs of the project and helps the designer and client plan for all the requirements beforehand.
- It protects both parties in cases of any defaults.
- It provides a fixed set of expectations from the project.
However, there are some downsides to having the contract in place, and it can be seen in the form of:
- Time-consuming and costly processes to set up the contract
- A rigid plan that may not be the best for all situations
- If drafted poorly, it may not provide the benefits it should
What Happens in Case of Violation?
The contract will be considered violated if either party does not execute what was expected from them. There can be many such events, and the actions would vary based on the situation. In case of delays in payments from the client, the designer may resort to a temporary stoppage of work. In the case of some variations from the initial plan, the client and designer may agree to reach a middle ground and complete the project. The parties may also agree to terminate the contract instead.
In case the issues cannot be resolved between the parties, they can reach out for external legal help. The contract is a legally binding document and can be presented to the court in case of any litigations(1). The aggrieved party can claim charges to the extent of the performance of the contract and any damages incurred during the defaulting event.
The end goal of the project is for the client to be happy with space.
Also, the designer to do a quality job and meet the client’s expectations. The agreement facilitates the smooth operation of the project and helps in the timely completion of all tasks and phases and leaves minimal room for any arguments between the client and the interior designer. It provides all the necessary information about the project and gives the measures to be taken in case any dispute arises — the advantages of having a contract in place surpass its drawbacks.