The Interior Design Letter of Agreement
Hiring an interior designer is easy, but understanding and writing an Interior Design Letter of Agreement, for some can be confusing. Whether you are thinking about renovating, or a newbie designer this is a must read. First, make sure to have the LOA reviewed by your attorney. Every business is diverse and unique, therefore, what might be in one LOA may be unsuitable for another.
Scope of work in your agreement:
The scope of work helps to describe the first steps in the design process.To list the scope of work in the agreement, the designer will schedule a consultation to gather the information. Under the heading scope of work, enter all rooms discussed with the client, for example, Master bedroom, bathroom, and/or kids bedrooms. Note, if you have a couple of kids include their names along with their ages and identify as bedroom 1- Mary-12 and so on. In addition, I prefer including the cost for each room; this makes it easier for the client to breakdown the grand-total. The design concept fee applies exclusively to the design concept agreed upon during Phase I.
Tidbit: Time frames are like setting goals. For each phase of the project consider including realistic time frames.
Phase I: Preliminary Design Concept:
The Preliminary design concept includes: Intake meeting, site survey, measurements (if needed) and photos. Collect some inspirational pics from your client. The best way to collect inspirational photos is for the client to upload and share using Google Docs, Pinterest or Houzz. Unquestionably, it’s the getting to know you process. Ask the client to provide floor plans if available.
Next, discuss design concept and budget. All lines of communication are open, never assume, when in doubt, consider calling to clarify.
Lastly, a tabletop presentation of preliminary selections, such as, finishes, window treatment, lighting fixtures, decorative items, and accessories will be reviewed with the client. After approval we are prepared to roll into Phase II.
Tidbit: I REPEAT, All lines of communication are open, never assume, when in doubt consider calling to clarify.
Phase II: Design Revisions to Preliminary Design:
It is best practice to dedicate a day during the week to update the client. At this time, all budgets and scheduled estimates should be prepared. Use the presentation sample boards include final selections: furnishings, finishes, paint, wall covering, tile, flooring, window treatments, and lighting fixtures. Include all the deliverables mentioned in the final presentation. Now that you’ve completed Phase II, you are prepared to schedule your meeting and present like a pro.
Completion of Phase II includes approval by client for all selections as well as revisions made to the design concept. The client can decide if he/she will continue onto Phase III or branch out on his/her own.
Tidbit: If there are any significant revisions to the final design concept the client will be billed on an hourly basis as per Phase III (see Phase III below).
Phase III-Project Management, Hourly Fees and Retainers
First, determine if your client will be purchasing the goods. Explain the benefits of a project manager to the client. One advantage of working with a PM is a substantial saving of time and money. The PM is not only there to purchase products, but may be involved with the contractors, electrician, tiles, wall coverings, window treatments and custom orders.
Next, designer fees shall be compensated on an hourly $ basis. The PM hourly service charges will be invoiced to the client in 5-10 hour increments. A retainer fee is set up and vary from $1,500 to $3,500 a month depending on the scope of work. When it’s time to bill, the invoice will be applied to the retainer. If the client does not use up all of the funds within a month, the amount on the retainer is automatically rolled over into the following month. Access to a balance sheet is provided to the client showing the hours and amount for each transaction.
Lastly, purchasing goods-the clients credit card number is kept on file for goods purchased by the PM. Note, designers do not have control over vendor pricing, as vendors pricing are subject to change.
Phase IV- Delivery and Punch List
Project management supervision and administration is provided on monthly site visist with the client and/or general contractor. Any additional meetings can be set as needed. Work on scheduling with the client to make shipping arrangements for the final home install. Arrange project completion walkthrough and use a punch list of things that need to be addressed.
Finally, the agreement should include a photo release section. The client agrees to let the designer’s photograph the project in all or any stages of the design. Photos will be used for publication, press, social media, marketing, print and advertising. Additionally, if the client documents or posts the project in print or photos the designer shall be given credit for the design.
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