What Should Be Included in an Interior Design Contract?

An interior design contract is an essential tool for both parties. It outlines the services you provide to your clients, and sets forth a clear timeframe for payments.

It should also address issues such as changes to project scope, intellectual property, termination terms and dispute resolution options. Read on to learn more about What should be included in an interior design contract?

Services

The services section of the interior design contract should provide a clear listing of all services to be provided during the project’s duration. This will help reduce any confusion and miscommunications between the designer and client. This includes any drawings, plans or renderings that the designer may produce during the project. It is important to state that these are conceptual in nature and are intended to set forth the design intent. It is also helpful to include a paragraph that states that the drawings and plans are not for construction purposes.

Another important aspect of this section is the payment terms. This could include a specific date that the services will begin, how long the client has to pay once they receive an invoice (i.e. 10 days, 30 days, etc) and how the designer will handle any late fees. You can also include a statement that the client will reimburse the designer for any out of pocket expenses like travel costs, postage charges and storage fees.

The final part of the services section should include the personal information for both parties, such as their full names, addresses, and license number (if applicable). It should also note a day that the services will end on, and that either party can terminate the contract with x amount of notice. Lastly, the agreement should indicate that the client will allow the designer to take photos of the finished project for use in the designer’s portfolio.

Fees

The schedule of services should detail your fees, how they will be paid and if there is a retainer. It should also explain if you are charging per hour, project or at the end of the work. It’s important to make sure your contract is clear and specific, so you don’t have any surprises down the road.

Indemnity clauses are also standard in most interior design contracts. These allocate claims for risks or damage between parties of the contract. Your contract should state that you will indemnify your client against losses, expenses or costs incurred due to the interior design works performed by you. It’s a good idea to include clauses for other insurance policies as well, such as professional indemnity and workers compensation.

Another important section to include is the intellectual property rights clause. The design process involves creating a lot of intellectual property, including designs, plans, details, permits and 3D renderings. These assets are valuable and must be protected by the designer. Include a clause that states you own any and all drawings and other design materials created for the project, and that they cannot be used by the client or anyone else.

A force majeure clause should also be included in your contract. This covers exceptional unforeseen events that affect the performance of the project. Examples of such events are wars and hostilities, terrorism, natural disasters such as earthquakes, volcanoes and floods, strikes other than by the designer or contractors and epidemics or pandemics.

Changes

An interior design contract is a valuable document that helps prevent misunderstandings, establishes professionalism, and facilitates a successful project. By laying out responsibilities, fees, intellectual property rights, a project timeline, and more, it provides the foundation for a productive relationship that mitigates disputes and promotes transparency.

An important clause to add is one addressing changes to the scope of work. It should clarify that the scope of services may change based on new information, unforeseen circumstances, or the client’s requests. The clause should also outline how these changes will be handled and billed.

Another crucial clause to include is a third-party services provision. This ensures that clients are aware of your ability to use outside contractors for plumbing, electrical, and other services. It should also outline how these costs are handled and what the designer’s role is in hiring and managing these contractors.

Insurance coverage is a vital part of any interior design contract. Including an insurance requirement provision specifies that your clients must maintain appropriate insurance coverage to cover the cost of any damaged or stolen furnishings, materials, and equipment during handling, transport, storage, and installation.

Finally, a miscellaneous provisions section gives you space to include any other terms or language that are specific to your business. This could be a link to your FAQ and policies, or an acknowledgement that the contract is subject to state-specific laws.

Termination

There’s no doubt that interior designers and clients are often a match made in heaven, but sometimes the relationship just doesn’t work out. For that reason, it’s important for both parties to have the option to terminate the contract with a certain amount of notice in the event that the client or designer doesn’t want to continue working together.

Another important part of the contract is the intellectual property section, which clearly states that the designer retains ownership of the design, including but not limited to sketches, drawings, blueprints and 3D renderings. This is important to include in order to protect yourself as the designer and prevent clients from taking your work and using it for their own projects without permission.

Lastly, it’s also a good idea to include a clause addressing purchasing and warranty terms. This will cover a few key areas such as if you’ll be marking up products, if you’re offering client designer discounts and what the process looks like for submitting a warranty claim.

 

Another item that is becoming more important during the COVID-19 pandemic is a health and safety clause. This should address what your requirements are for a safe and healthy working environment, as well as the specific steps you will take to promote a healthy workspace for both your clients and your team.