How to write bulletproof interior design contracts [+ examples]
Finding loopholes in a contract where clients or contractors can circumvent the terms to your detriment is a risk that you can eliminate from the start. Make your contract as airtight and bulletproof as possible so all parties are well-equipped with the knowledge needed to execute the project. Ready to deliver? Arm yourself with these must-have clauses on your interior design contract.
Why do you need an interior design contract?
In the event of force majeure or should unforeseen circumstances happen, verbal agreements or friendly handshakes don't give you the same level of protection as a contract does. Inevitable disputes may arise, and having a handy arsenal to protect your business falls under best practices. You simply can't sue for a breach of contract when you don't have a legally binding agreement in place with your clients.
But even if you have one, you need to make sure that your clauses are intact. Just because you found a ready-to-edit template on the internet doesn't mean you've got all your bases covered. We do our best to keep you informed with this guide, but the best-case scenario is to consult with lawyers for fine-tuning reasons:
Check for any possible loopholes with your interior design contract
See if the legal document would give you the guarantee of safety and hold up in your state of jurisdiction as this can vary on a case-to-case basis
9 clauses to consider in your interior design contract
To start drafting a formal agreement, illustrate that the client has a need for your interior design services, and both parties wish to set forth the terms and conditions for the interior design contract. Some basics to cover include:
Your business name
Client’s company name
Address
Telephone number
License number
Start and end dates
Without a signed contract to enforce, your interior design business faces miscommunication, underpayment, scope creep and schedule misalignment among other risks. Let's review how these detailed clauses below can benefit you.
Scope of work
To eliminate scope creep, be exhaustive with details as possible. Clearly state the extent of the interior design services that you'll provide for the client, including but not limited to:
FF&E consultation & deliverables
Revision limitations and feedback
Project schedule
Services and workload
Progress meetings with architects, consultants and contractors
Clients often confuse architects and interior designers for similar work profiles, and it is important that you address this overlap and delineate your distinctive functions in an interior fit-out project. Take the clause a notch up higher and eliminate the client's assumptions for engineering services such as structural, HVAC, electrical and plumbing installations. Anything that's not put in writing can be effectively used against you for liability, so reiterate your position as a separate legal entity.
2. Drawings & specifications
Your interior design plans and specifications can go from simple conceptual moodboards, to technical cut sheets with product information. However, the level of complexity you can provide only depends on the accuracy of the design intent provided by your client.
This clause protects you from any liability if the client deviates from the conceptual nature of these design documents and asks more than what they've intended. By inserting this, you also set the intention that the blueprints are not to be used for such purposes other than what you've agreed in the interior design contract.
3. Design fees
Do you want to charge by hour, fixed-price, lump sum, percentage-based, per area, per design phase or per diem? Put one or a combination of these pricing methodologies in your interior design contract.
Hybrid or not, be upfront with your fee structure and communicate with transparency. Breaking down the barriers of communication can help your clients understand the fee associated with the value you bring, and will lead to faster payments once you issue invoices.
4. Payment terms & schedule
Running your interior design business successfully earmarks your need for positive cash flow. Adding this clause in your interior design contract will set the client expectations on your timeframe and billing schedule.
Whether you go for two-parter pricing or periodic invoicing every 10, 14 or 30 days—it pays to stay on the clock. To ensure client payments are underway, you can also impose late fee accruals outside your pre-set regular intervals or put a stop-work order until all invoices are settled.
5. Purchasing & procurement
Clients can either procure themselves, or bank on your interior design expertise to deliver the procurement. If they see that you have a trusted network of manufacturers or you're open to working with innovative brands using a tech stack like Source, clients can leverage this information for their procurement decisions.
Any such time that they take longer to make this decision, you can insert the "price guarantees" clause in your interior design contract. Supply & demand, together with lead times, can play a part in diluted or inflated material price changes in the market. If the client prefers you do the procurement, account for this clause and ask for their deposit before you purchase materials.
6. Reimbursement
Any expenses incurred outside of the scope should be clearly outlined in your interior design contract. Reimbursable expenses include travel, lodging, freight, delivery, storage costs and other project-related tasks.
7. Refunds & cancellations
To deliver an interior project efficiently, get your client's FF&E purchases right the first time with sign offs and cuttings for approval (CFA). Once you factor in the refund and cancellation clause with non-refundable deposit on your services, it's now in the client's discretion to carry the kill fees anytime they wish to backtrack on their custom or off-the-shelf material purchases.
8. Documentation
Set the documentation terms with your client and equip your interior design contract with another bulletproof layer. Before-and-after photos lock you in with foolproof points of reference for:
Quality control and on-site supervision of contractors and completed works
Progress payments
Marketing purposes
Intellectual property
9.Insurance & indemnity
Start work only once your client ensures full FF&E insurance coverage from delivery, transportation, storage, handling and installation, especially in medium to large-scale interior projects. Nullify any liability claims with an indemnity clause.
Conclusion
A bulletproof interior design contract works two-way: nurture a spirit of collaboration first, then act as the first line of defense when disputes can't be solved. For worst-case scenarios where mediation is already exhausted, this legal document can hold up as your evidence in court, but only with zero loopholes.
Author
Karissa Austria | Architect, Construction Manager & Consultant
