We understand that creating a contract for the first time is a daunting task! To help you get started, download our free interior design contract example to see sample language you can adjust to suit your business needs.

What is an interior design contract?

An interior design contract is a legally binding document that outlines the terms and conditions for any planned interior design services. Both the interior designer and the client are expected to sign the contract before a project is started to ensure that both parties are aligned on expectations for services rendered. Interior design contracts are also sometimes referred to as agreements.

How is a contract different from an interior design scope of work?

A contract can be combined with a scope of work, or a scope of work can live as a separate document, but both are important to have before you start any work on an interior design project. The primary difference between the two is that while a contract might contain a scope of work (definitions of expectations, responsibilities and services provided), without a signature from both parties, a scope of work is not a legally binding contract.

Why are interior design agreements important?

Starting an interior design business takes a lot of effort. You’ll likely invest significant funds and hundreds of hours getting to the point where you’re ready to work with clients. Don’t put it all at risk by skimping on your interior design contract! 

With an iron-clad agreement, you can protect your business from costly liabilities and legal fees that could impact your ability to achieve your business goals.

24 clauses to include in an interior design contract

To provide you with the best guidance possible, we enlisted the help of interior designer Jihan Spearman, owner of Jihan Spearman Spaces; she has drafted many interior design service agreements. Keep reading to learn what she thinks are the most important provisions for interior designers to include in a contract.

1. Agreement/Preamble

The first section of an interior design contract is known as a preamble. This clause acts as an introduction and establishes that the document is intended to serve as a legally binding contract between the parties involved. Additionally, it defines the client and interior designer, so it’s crystal clear who is agreeing to the terms.

2. Services Statement or Scope of Work

Most contracts include or reference a separate interior design scope of work to clearly define the services that will be provided. This structure allows interior designers to use their contract for all of their projects without changing it much — whereas the details of the specific project (location, types of services offered, fees) are included in the scope of work, which changes for each project. The more details, the better!

3. Revisions

Revising designs can be time-consuming, so it’s smart to outline how many rounds of revisions you will provide. For designers using a flat-fee structure, it’s typical to limit clients to two or three revisions before an hourly rate kicks in. This ensures that unplanned revisions, which often take a lot of time, won’t significantly erode your profit margins.

4. Third-Party Services and Contractors

The third-party services provision states that the designer can work with third parties, such as contractors, to complete the job, and that the costs of those third parties are not included in the price of the project. In many states, interior designers cannot directly pay for subcontractors. If this is applicable in your state, consider adding an additional contractors clause to verify that clients understand they are the responsible party for compensation and insurance related to contractor services.

5. Expenses

The expenses clause defines what expenses are included in the interior design contract. This section references typical expenses incurred, such as travel time, samples and printing . If any other costs are needed to complete the job, those will be discussed with the client beforehand.

6. Purchasing Details and Deposit

Because interior designers purchase products on behalf of their clients, it’s crucial to include a clause that clarifies how furniture will be purchased. For example, requiring a deposit before purchasing helps designers avoid getting stuck with hefty furniture bills if the client decides to terminate the agreement or not pay for any reason. 

Additionally, it’s becoming more and more popular to provide custom furniture items, as pandemic-driven shipping delays have significantly disrupted timelines. When pieces of custom furniture are purchased, it’s helpful to have a note in your contract about how these items can’t be canceled or returned. Some designers offer to help clients resell items they don’t want, but this is often a daunting task, so proceed with caution. 

7. Exclusivity/Non-circumvention

It’s common for interior designers to make some of their money by charging their clients the retail price for an item, then keeping the difference between the retail price and the wholesale price. Designers cannot obtain that markup profit if clients circumvent the designer and try to buy items on their own. With the rise of online shopping, this is happening more frequently, which is why you should establish expectations around exclusivity in your interior design contract.

8. Payment Terms and Standard Compensation

The payment terms section is arguably the most important section of your interior design agreement. This is where you will reference your payment model, whether it be fixed rate, hourly, percentage above cost or a hybrid. Billing hourly is the most common fee structure, but more and more designers are charging a flat fee for a design plan, then shifting to hourly billing for all remaining work. If you haven’t settled on your payment structure yet, that’s OK! See our separate article, “How to Charge for Interior Design Services.”

9. Invoice or Payment Schedule

You may consider adding a sub-clause within the payment terms that describes the payment or invoicing schedule as well as how much time clients have to pay their invoices before consequences ensue. For example, an interior designer might bill monthly and expect payment within seven days of receiving an invoice before suspending interior design services. Whatever your preference, ensure that your expectations are clearly laid out to guarantee you get paid when you need to. Interior design billing and invoicing software programs such as Houzz Pro can be excellent tools for managing your cash flow, as they allow you to send estimates and invoices and to collect payment using a single tool.

Tip: Interior designers can charge interest for late payments. The specific amounts allowable depend on the state where the interior design services are being rendered.

10. Reimbursable expenses

The reimbursable expenses provision is essential to include in an interior design contract, as it guarantees the designer will be compensated for out-of-pocket expenses necessary for completing a project. Some examples of expenses that may accrue include design samples and shipping charges. These can add up, so be sure to include this clause the next time you draft a contract to keep as much money in your business as possible.

11. Transportation and Storage

Include a transportation-and-storage clause to protect yourself from any charges related to getting project materials where they need to go or storing them until it’s time for installation. 

Interior designer Jihan Spearman recommends using a shipping-and-receiving company to have all project items shipped to the client’s house at the same time. “This creates a really impactful install-day experience for the client to walk in and see everything in its place at once,” Spearman says.

12. Insurance

The insurance clause helps remind clients to purchase insurance for any items being shipped or stored until they make it to their final destination at the project site. Include this provision to relieve yourself of liability for loss or damage.

13. Proprietary Rights/Intellectual Property

Now more than ever, interior designers can grow their business by sharing their work on social media. This provision ensures that the interior designer has the right to take photos of a project and use design plans and drawings for marketing or any other purposes. It does so by confirming that the interior designer is the sole owner of these materials. There are some state and federal privacy laws that should be followed when taking photos of personal spaces, so be sure to consult with your attorney to make sure your interior design contract is compliant.

14. Warranties

Warranties are the explicit promises that both parties make to each other. Interior designers should promise nothing but compliance with the law.

15. Disclaimers and Limitations of Liability

This provision can be useful to generally limit liability for unforeseen circumstances.

16. Permits

A permit clause helps interior designers avoid unpaid costs related to obtaining permits, licenses or waivers for a project.

17. Termination

Interior designers and clients should be able to amicably part ways if they aren’t a good fit for each other! The termination clause exists to put that sentiment in writing, allowing either party to end the agreement for any reason. You can also decide that the client should be able to terminate only if you breach the agreement. Modify your contract based on what you think is best. 

18. Force Majeure

The force majeure clause has become a big focus of many interior design contracts due to the COVID-19 pandemic. Given sickness, death and travel delays, many interior designers are including this provision to give themselves an out should it become impossible to provide scoped services. 

19. Non-disparagement

With the ongoing rise of internet use and the impact that online reviews can have on a business’ reputation, the non-disparagement provision is highly recommended to include in your interior design contract. This clause states that neither party will leave a bad review on any public or social platform. It’s important to note that in some states this type of clause might not be enforceable, but your attorney can help guide you through the best approach. 

20. Attorney’s Fees

This protects the interior designer from having to pay for attorneys to resolve any disputes involving the interior design contract. 

21. Relationship of the Parties

You can establish that there is no special relationship (employee/employer or partnership, for example) between you and the client by including a provision covering the relationship of the parties.

22. Entire Agreement

The entire agreement provision states that the interior design contract supersedes any other agreements between the interior designer and the client. Additionally, it states that the contract cannot be changed without the signed approval of both parties.

23. Governing Law and Venue

This section sets the precedent that both the interior designer and client will adhere to the jurisdiction of the state where the interior design services are being provided.

24. Miscellaneous 

Adding a miscellaneous provision is a great way to include any other legal language you feel is needed in your interior design contract. For example, perhaps you want to direct clients to an FAQ-and-policies document where they can find more information about the services they are agreeing to. A miscellaneous section is the perfect way to give these types of details a home in the agreement.

What’s next? Tips for after you’ve drafted your interior design contract template

Research State-Specific Considerations

Now that you know what provisions exist for you to leverage in your contract, you can work with an attorney to understand what state-specific laws might impact your agreement. If you conduct business in multiple states, consider creating multiple interior design agreement templates so you never forget to update any state-specific language.

Seek Help From a Lawyer

When it comes to finalizing your interior design contract, nothing can replace guidance from a professional lawyer. Attorneys are trained to spot areas of your contract that could be open to interpretation, exposing your business to potential legal threats. Always consult a lawyer when creating an agreement! 

Attorneys charge anywhere from hundreds to thousands of dollars, based on their experience and how complicated your agreement is. While this might sound like a large expense for a new interior design business, it can greatly pay off if you ever find yourself in the midst of a legal conflict. Search out attorneys who specialize in business contracts or have experience working with other creatives, such as photographers or contractors. 

Don’t Forget the Signatures

A contract means nothing in a court of law without signatures! Provide clients with your contract as early as possible so they have time to read through it and ask questions before signing. It might be tempting to get started on work without a signed contract, but you’ll be better off waiting until the client signs on the dotted line.

Conclusion

Now that you know how to create an interior design contract, you might need help organizing all your project materials so you can easily refer back to them when needed. Luckily we’ve prepared some top tips for organizing client files and other interior design materials to help you run a tight ship.

If your current document management or organization system could use an upgrade, consider a tool like Houzz Pro's interior design software. Our project management tools crafted specifically for designers make it simple to store documents in the cloud, share them with clients and send email reminders, so you can spend more time designing and less time on office work. Schedule a free demo to explore these features and more when it's convenient for you.