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Interior Designer contract

12 years ago

Long time member who has gone anonymous for this post. We worked with this Interior Designer. Never signed a contract. ID referenced the contract a few times and when we questioned some of the business practices, the ID must have thought things over and came up with a NEW contract, which we also never signed.

I am copying the contract below. Is this normal for the industry? The ID has given themselves an out for every scenario.
-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.
Thank you for the opportunity to work with you on the design project for:

("Client") at 1234 Main Street, Anytown, USA ("the Project"). This agreement (the "Agreement") will describe how the Project will proceed and, when executed by Client, and ("Designer"), will serve as our contract. This Agreement, including any duly executed and attached addenda or exhibits, constitutes the entire agreement and understanding concerning the Project and supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matters hereof. This Agreement may only be modified or amended by a mutually executed written agreement between Designer and Client. Reading this document thoroughly will help our time together run smoothly.

Designer and Client hereby agree as follows:

1. Designer will meet with the Client and discuss the design project. Designer will then come up with a design plan. This may include floor plans, and or furniture and materials suggestions.

2. If requested, Designer may produce a budget for the project. At the time of budget approval it would be agreed upon whether the Client or Designer will manage this budget.

3. Designer will oversee the installation of all materials agreed upon for the design project, unless prior arrangements are made with client due to scheduling conflicts.

4. Designer will from time to time visit the design project to ensure that the work is conforming to the design plans and specifications of the design project. Client is expected to grant reasonable access to the premises of the design project for the Designer and/or Designers agents, as well as the subcontractors required to perform the agreed upon work.

5. All design concepts, drawings, and specifications remain the property of Designer, and may not be used by the Client to complete the design project with anyone other than The Designer.

6. Designers time will be billed at $150 Per hour and in one half hour increments. Time will be billed for, among other things: meeting with the Client, creating designs and drawings, specifying, ordering and procuring elements needed for the project (including travel time and time spent researching, inspecting and purchasing such elements), hiring, scheduling and coordinating subcontractors and deliveries, and managing the flow of the project design, orders, and implementation via email, phone, and other forms of communication.

7. Designer's time will not be line itemized. Designer's time will be billed in a lump sum of hours and cost on a weekly or bi-weekly basis, or as necessary at the discretion of Designer.

8. Major travel expenses incurred by the Designer on the Clients behalf will be pre approved by the Client and paid by the client.

9. All elements purchased by the Designer for the project will be invoiced through Designer. This invoice will serve as the Client's sole receipt for all purchases. Sales tax will be charged where applicable on invoices according to the laws of the state of California.

10. Items purchased by the Designer for the project will include a mark up that constitutes a profit for the Designer.

11. A deposit may be required to offset the costs associated with goods, services and labor under certain circumstances, including but not limited to the following: large projects requiring a substantial commitment of Designer's time and other resources, projects where the completion is subject to an agreed upon or Client requested deadline, and instances where Client will be out of town or otherwise unavailable for extended periods of time.

12. No items will be ordered, or work by subcontractors commenced, until the fees and costs associated therewith are approved by Client, and the invoice for those items is paid in full. Once design elements are ordered by Designer, there may be no modifications to or refunds for those elements.

13. Invoices are due upon receipt and must be paid in full before items are ordered and subcontractors begin work

14. Designer's services will be rendered in good faith in a professional manner. Designer will use all reasonable efforts to expedite the completion of each project. Designer cannot, however, be responsible for any delays in the performance of subcontractors or in the delivery of goods or any materials supplied by others.

15. Designer does not anticipate that there will be errors or defective workmanship in any goods or services provided by others. However, if this occurs, Designer will make reasonable efforts to correct the error or defect to Client�s reasonable satisfaction once Designer has been notified of the problem.

16. At times, custom items will still require minor adjustments after installation.

17. Manufactured and custom-made furniture and other objects will often have minor imperfections. Such imperfections are inherent in the nature of the fabrication, delivery and installation processes, and are beyond the control of Designer. While reasonable efforts will be made to install pristine goods, Designer shall not be responsible for furniture and other items containing minor imperfections, and Client agrees that it will accept and pay for such items.

18. Designer may "borrow" (memo) design elements (art, lighting, accessories etc.) to show the Client the objects at the project site. These objects will be returnable for a 3 day period. Designer will issue an invoice or request a deposit against borrowed items to be paid in full before objects are brought to the project site. Items returned will be refunded to the client. Items that are not chosen must be returned within 3 days of the memos arriving at the project site or no refund will be made.

19. Designer may suggest subcontractors for the project. Client shall pay subcontractor directly. Designer shall not have liability for the work or actions the subcontractor(s).

20. Designer may take photographs of the site prior to the design installation. Designer may take, or have professional photographs taken at the completion or towards the end of completion of the design project. These photographs will be used for marketing material for Designer, including but not limited to website, and publication. All photographs remain the property of Designer. Client agrees to the taking and use including publication of photographs of the project.

21. Either Designer or Client may terminate this agreement if the other fails to perform according to the terms contained in this contract. The party desiring to terminate this agreement must first notify the other party in writing of the problem. If the problem is not addressed or cured within seven days following receipt of notification, the agreement may be terminated. Upon termination Designer shall be entitled to payment for all services completed, all merchandise on order, and all outstanding time and out of pocket expenses for the Clients project.

22. Should any legal action proceeding be brought by either party to enforce any part of this contract, the prevailing party shall recover, in addition to all other parts of this contract, reasonable attorney's fees and costs according to the law of the state of California.

23. A retainer of $______0____ is due upon signing of this contract. This will be applied against Client's final invoice.

24. This represents our entire agreement and the terms of this contract cannot be modified except in writing, and signed by both Designer and Client.

25. Please sign and date one copy of this contract and return it to Designer at 1234 Main Street, Anytown, USA.
We look forward to working with you, creating a fantastic space, while enjoying our time
together.
Sincerely,
Desiner
Client Name .
Client Signature
-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-

Summarizing
- Do not itemize any of their time
- Do not give you a detailed invoice with product information
- No longer state what their markup on products is, just that they will make a profit on items.
- State that products ordered may have minor imperfections and that Client HAS to accept and pay for such items.

This designer has had a fair amount of exposure in my area and I'll be sure to advise any who ask that they need to really read the contract. ID did not require us to sign a contract but now keeps bringing it up when we have issues. Bait and switch? ID has asked clients for reviews on Houzz and I'll be adding my views.

Just venting and wanting to see what others think of this business model.

Comments (18)

  • 12 years ago
    last modified: 11 years ago

    I think that's ridiculous! I almost hired a designer that was 150.00 an hour until she sent me a contract , not quite as bad as that one! But she had us doing the job in phases and charged for storing things in her place if we were not ready to take them! I found another wonderful decorator who is only 80.00 and no contract! I can call, text, email her anytime with any questions as we go and no extra charge! I think you need to find someone else!

  • 12 years ago
    last modified: 11 years ago

    That contract would stress me out. I work as a decorator -- not a designer -- very much like karle's decorator. No contract, though I do write up a "scope of service" at the beginning of larger projects that outlines what I'll be doing and approx. how many hours. But no one signs it like a contract. I think this is why I have so many friendly relationships with clients who continue to ask me to come back even for small things like "can you help me find bedding" or paint color for one room. Of course, I'm sure the higher end designers don't have the time or inclination to do little jobs like that (and I'm not saying that disparagingly or sarcastically) but I have no problem doing them.

    I don't know how typical that contract is, but it seems a little strange that you haven't signed it and yet the designer is still working on your project?

  • 12 years ago

    I wouldn't be working with her...with or without a signed contract.

  • 12 years ago
    last modified: 11 years ago

    I would send her a pink slip along with the unsigned contract.

  • 12 years ago
    last modified: 11 years ago

    Sue - you do decorating work? I never realized that!

    Okay to the original question. First off, no one does work on our home without a contract. We learned that the hard way. A signed contract. It protects not only the other party - but you as well.

    Next time she mentions the contract, I'd tell her there is no signed contract so whatever she is talking about is worth nothing. Many of her requests in the contract sound a bit ridiculous. As long as it is not signed by the both of you - it doesn't mean a thing. . .

    tina

  • 12 years ago
    last modified: 11 years ago

    Still working with ID because we have items that were in production and not delivered yet, but ordered a few months ago. ID is a nice person socially, but I think has become too busy to manage things. When we started working with ID the original contract wasn't so one sided, hourly rate was lower and markup was a set stated percentage. We never signed the original one because it was presented after we met with an "oh, by the way, this is the contract I use".

  • 12 years ago
    last modified: 11 years ago

    As far as their referencing your contract:

    "This agreement ... when executed by Client, and ("Designer"), will serve as our contract."

    There is no contract. Other than your verbal discussions.

    This post was edited by snookums2 on Wed, Sep 25, 13 at 11:09

  • 12 years ago
    last modified: 11 years ago

    15. Designer does not anticipate that there will be errors or defective workmanship in any goods or services provided by others. However, if this occurs, Designer will make reasonable efforts to correct the error or defect to Client�s reasonable satisfaction once Designer has been notified of the problem.

    What is reasonable ??

  • 12 years ago
    last modified: 11 years ago

    Beverly, I can't think of many businesses were they collect payment and profit upfront without delivering anything. I know the ID doesn't have to pay the vendors 100% upfront. Why should I take all the risk?

    The issue with the markup, is that it was stated as her fees when we started. When I built, I was charged cost+GC fee. I saw the invoices plus fees. The ID was never transparent in her billing. I see it as smoke and mirrors, if you aren't upfront about something, then most likely the ID is playing with the numbers and not wanting to expose the bottom line. We always pay above market wages and believe people should make a good profit, but I expect people to bill me openly and honestly. The landscape designer I used did this. A friend in another state does this in her design business.

    Getting bills every month for $1-2k for billed hours with no explanation or breakdown has become tiresome.

    It has been an expensive education and I've learned enough about how this town is set up, that I know I can work on my own. The major local designer center allows mere mortals to browse. I can write down product information and then get samples on line and purchase on line. I'm confident in my tastes and choices and know I can do it for much less cost.

    The relationship would be over except for pending products, one of which won't be here till spring.

  • 12 years ago
    last modified: 11 years ago

    It doesn't sound like you will, but not a chance I'd sign it at this point in your relationship. I agree with a PP that it looks like a form drafted by an attorney to heavily favor the ID. I wouldn't suggest signing something like this at the start of a project, either, without representation. (Which just seems like such overkill! Why not a simple, straightforward contract?)

    Just to clarify -- you may or may not have a(n oral) agreement with this ID. I would suggest writing back to the ID (presumably you received their form in an e-mail) and state that you're not comfortable signing the contract (i.e., put it in writing that you're not agreeing to these terms).

    Anyway, I don't know how much I've added to the discussion as you seem to have a pretty clear head on your shoulders and understanding of the risks involved. Good luck!

  • PRO
    9 years ago

    This is ASID standard. If you ( the client ) does not sign a contract with a designer you are vulnerable. The contract is for the clients protection as well. It isn't about "in favor", it is helping the client understand the process, and educating you as to what you can expect and how things will be handled. I have been in business for 18 years and I get asked to send my contract over to my potential client's attorneys all the time. Any reputable and credible designer would not do business with out a similar contract.

  • PRO
    9 years ago

    Many designers work on a pro forma account basis with the to-the-trade showrooms. That means, they must pay for the items IN FULL when they place the order. In the 35 years I've been a designer, this is how I prefer to work. Obviously, I could have a credit account with the showrooms after our long relationship, but I prefer the pro forma basis - doing business this way means I've never had to "eat" an order. Clients have a very nasty way of not discussing budgets with husbands, have the designer order things and then when a check is due, husband hits the ceiling and refuses to pay. I do not need this kind of drama in my life.

    So, I explain to the client that my accounts are pro forma and I must pay for them when I order and that they must pay me before I do so. I've only had trouble with one client - her husband didn't like that idea. I said - "fine" - I'll be happy to give you the name of other designers you night like. Heard later, that husband refused to pay for a ton of stuff designer ordered and she had to eat the expense and hope to sell it to another client later or donate it to a charity. My business was far too small to take that kind of a hit.

    But I have never used a written contract.

  • PRO
    8 years ago

    Agree wholeheartedly with StudioBlu. No project or relationship between an interior designer and a client should commence without a written contract for the protection of both parties. Contracts are made to be negotiated and I am flexible with my clients within reason. But there are professional standards and practices that should be maintained by all your professionals (Architect, Interior Designer, Professional Consultants and Engineers, General Contractor) and a solid contract insures that in the rare instance that something goes so wrong that the contract needs to be referenced, there are clear paths to resolution. That is just better for everyone.

    In regards to which contract to use, the ASID contract is a solid contract. I would equate it to a standard real estate contract that you would use in purchasing property. It is based on best demonstrated practices for the industry and factors in a broad variety of situations following standard industry protocol.

    I use a modified version of it and have never had problems because the very act of discussing the contract is a great starting point to set expectations for a project. Clients often don't realize the extensive role the Interior Designer plays in bringing a project to completion. By reviewing the contract with my clients, I can give examples from both the client's perspective and mine of how and why that clause exists and the value of the services my firm will be providing. I recommend all relationships between professionals and their clients begin with a open discussion around the contract.


  • PRO
    8 years ago

    Another point of interest for the Clients out there who are reading this...Even though I use an extensive contract based on the ASID form, I have never had to resort to it to resolve an issue or misunderstanding with a client. I attribute that to the fact that when we start with extensive needs analysis, a thorough scope of work and a contract negotiation, my clients know what to expect and there are no surprises. If you can get through this initial phase with your designer, you can expect a good working relationship.

  • 8 years ago

    That contract wouldn’t work for me. I pay the ID we use by the hour. If she comes to our home, I pay her that day. If we go out shopping together I pay her as she is leaving. When she works from home for me she sends me the bill. I haven’t had any issues.

  • PRO
    6 years ago

    I love the part where the contract states 'may' include floorplans and 'may' include budget. lol

  • 5 years ago

    That contract gave me a headache. However, a contract is important as it lays everything out so that there is no misunderstanding. It not only protects the designer, it protects the client as well. Sometimes people forget what they said or what was said to them, this way they can always refer to the contract. It's business, a contract is a necessary part of doing business. Having a contract does not mean that you won't have a great relationship. On the contrary, it creates a much better relationship between client and designer.