As I'm walking through my contract with the client it.
Should really be easy. To understand, for the most
part, if your client can understand what they're saying,
yes. To that creates trust.
So they need to to not see a whole bunch of legal jargon,
which, you know, my first. Early days I was.
Trying to find a contract I could work with, I finally got
like. I think it was a SIDS contract
or a version of it that I saw in a.
Textbook that I had. For professional practices and
just kind of piece mealed it together.
It was a lot of legal things that I really didn't understand.
I'm like, it's in the ASID contract, I'm going to put it in
here. And I had no idea what it was
saying. And so if a client asked me what
does this mean? I'd, I'd say I, I don't know.
So that doesn't create. Trust right?
Like. What are they agreeing to?
And you have no idea what they're agreeing to either.
You're now listening to design. Curious, a place where you.
Creative One are here to learn. About what it really.
Is like. To be an interior designer, and
I'm your host and mentor, Rebecca Ward.
If you're worried about how to succeed in a creative career.
If you're ready to learn your next steps to become an interior
designer, and if you want the satisfaction of doing something,
you. Love every day you.
Are in the right. Place grab a coffee.
A notebook and let's dig into today's.
Episode. Hello.
And welcome to episode 191 of Design Curious Podcast.
Today on the podcast we are talking about contracts.
Not super fun, but contracts really are your business.
Bestie, because your. Contract's not just.
A piece of paperwork. Or something that you send over.
Because you're supposed to. It's one of the most important
tools in your business. It's your backbone.
It helps keep everything clear all.
Parties are safer, it supports your process, it helps you get
paid. And gives you something solid to
stand on when questions or problems come up.
Especially if you're a newer designer or newer business
owner, this matters more than you think.
A strong contract is not about being cold or.
Rigid. You might just hear the word
contract and you. Start to fall asleep.
Some of you might call. Also a letter of.
Agreement to be a little. Bit less.
Formal or boring, but they're pretty much the same thing and
it's really just something that helps you to be clear and
professional and protected. So I'm going to break down three
things that your contract should be doing for you.
Before we get in there, I want to let you know.
That we have. A webinar coming up.
For those. Who are thinking about starting
a business in interior design. Haven't done it yet.
I have a webinar. To help you explore if you're
ready. For it and also how much is that
going to cost to start the business?
So. Details for that you can sign up
are in the show notes. I'd love to have you there.
And learn to see. If you're ready.
To start your business. If you have what?
It takes and if you have enough money set aside to to really
launch well. OK, so let's.
Get into the episode. So don't tune out because we're
talking about contracts today. I know it doesn't sound super
sexy, but believe me, it is one of the most important parts of
being an interior designer and having your own business and.
It really. Is your business.
Bestie, so let's go. Over the three things your
contract should be doing for you, the first thing is that it
should be creating clarity. One of the kindest things that
you can give to a client is clarity.
It's going to outline and. Specify all the.
Things that you do for them. A good contract will answer
questions before they come issues and it tells the client
what to expect. How your process works?
What's included, what's not included and how communication
will happen? How payments work?
What happens if something changes?
So all of this is huge because. So many client problems don't
start with bad intentions, right?
You're like, yeah, we'll just, you know, wing it and we don't
need a contract. We'll just, you know, I'll just
bill you along the way. Things are going to be fine.
We get along so great, but things can go wrong.
And this is where a contract is really going to be helpful.
Also, when you don't have a contract, you have unclear
expectations for the client. The client is not exactly.
Told how to. Communicate with you.
Maybe they start texting you day and night and demanding that you
respond to them on the weekend, and your contract can tell them
that you don't do that. That you're.
Happy to hear from them, but please e-mail me within
business. Hours.
Or it could be that. You need clarity around.
The project scope. Especially if you're doing fixed
fee at all, the project scope becomes.
So. Critical.
So your contract is going to spell out what is included in
your design fees and what's not included, and at which point it
might roll into from a fixed fee into hourly.
Or even if you're hourly along the way, you still need to.
Clarify the project scope. In my contract.
I like to have all of the scope clarified I give.
Them an estimate of design fees. I tell them actual design fees
may vary. Because.
You know, don't hold me to it, but this is based on past
projects and this is my best guess on what it will be and
then. I also allow.
Room though for I like I am. Great with scope creep.
On a project because I allow room for them to add on, so
maybe we get started. They're just wanting to do their
kitchen. We get into the process.
They love it. And they're like, you know,
while. We're here.
I also. Need to get new dining room
furniture and I need new lighting and new.
Brussels. But all it's it's like.
Things that they didn't think they wanted to.
Do to start with. Because they weren't sure if
they could trust me or if they really were going to like
working with a designer. But once they decide that they
do, then they want to add these things on.
No problem. The contract allows for that.
We don't have to. Revisit it.
It allows scope to be added. At the and will be.
Billed at the hourly rate so. No problem there, the contract
is already. Set up for that.
And it makes. It easy peasy.
And I know I'm going to get paid for anything that gets added on,
and they know that they're going to pay for it.
So that's huge. It gives.
Clarity around that. It also gives.
Clarity around when you get. Paid so it should.
Be telling the client that you bill monthly.
If you do hourly, maybe you bill every two weeks or you can.
Bill, whatever you like. But make sure that you are
billing 'cause then that also keeps you accountable as the
designer. The client is expecting a bill
every month. You better not be going three
months without billing them. They'll be asking for it, and
they don't want to see a huge. Bill Every.
Three months they want to be spaced out.
Probably it's more. Feasible that way.
So so yeah, it it. Says when you get paid.
How you get paid? Do you accept?
Checks, cash, credit cards. Venmo how do you want to get
paid? What are the best?
Practices and you get to. Decide how they.
Send you money and then it keeps the client from assuming things
that are never actually promised to them.
So any additional services. Maybe you don't include
accessorizing in your design fee estimate.
Then it can. The client will say.
I oh, I thought. That was included.
Well, no, it's not. It says here in the contract
that that can be added as an additional thing.
So it really. Is defining all those things and
I like to go over everything and give that clarity in the initial
consultation and so it's going to go over my.
Services how I work. I follow a.
Certain program with each. Project I go through.
Each step doesn't matter. The size or the scope of?
The project, everything goes through the same process.
And so my contract will explain to them how I do that process.
Like first we can meet with the consultation, that's what we're
doing now and then next week gather information.
And so that's when I'm going to come back and take measurements
and photos and we'll look at Pinterest boards.
And, you know, so I just kind of talked them through the process.
And in the meantime, they're getting excited because they can
see. That their project.
Is going to be handled. Well, but also like.
There are tangible steps that they can look forward to on
getting their dream home realized and it will help them
understand the. Phases of the project.
And I kind of talk. About how there's.
Highs and lows. It's such a great talking tool
to have by my side. As I'm explaining it in the
initial consultation, I can tell them that like OK, when we get
into project management and demos happening and you're, you
know, maybe they're. They decide to live.
Through the construction, I'm warning them and I will remind
them later again how challenging that's going to be for them.
You know, maybe really consider getting an Airbnb while they're
demoing or you know, something like that.
We have we. Are able to talk through a.
Lot of issues that might come up and maybe things that they
hadn't thought about before. It will explain revisions.
How many times are you going to revise a design or how many
versions are you going to show them at the presentation?
What are the timelines like? How long does it take to go from
that initial consultation to a presentation?
For some designers it might take 4 weeks, for some it might take
four months and. So this gives clarity.
To the client on what they can expect on how.
Fast their project. Is going to move and then it
talks. Also about.
Purchasing procedures. So here's.
Where? A lot of designers complain
about clients shopping them and well, you can't.
You can put parameters in there and say you can't shop me or you
can't. I'm not going to give you any
information that you can go and find the things yourself.
Instead what I. Like to do is.
Say the designer will purchase, suggest and.
Have available for purchase. All of these things you'll be
purchasing through the designer. Wholesale things only available
through the designer. If there's any retail items,
it'll be sold to the client at the.
Retail price. We'll you know be charging to
procure them, but if the client. Chooses to.
Find an item on their own. Maybe they love shopping,
Facebook marketplace or something like that.
I'm not going to keep them from doing something that they.
Love to do but. Then I'm not responsible for
that item, they have to. Store.
It or if they're ordering off of Wayfair or something, then they
have to receive it, inspect it, take care of any damage claims.
I'm not going to touch that at all.
That's completely up to them. So a lot of times they'll.
Quickly realize that. OK, yeah, I want to pay for the
designer to have it all taken care of, have it stored in in
their warehouse until. It's ready to deliver because
that's the luxury as well, 'cause.
Then you ought to drop it into. The garage where it's.
Already full of plumbing fixtures or something like that,
it becomes. Clear that why we have our
process the way it is so. Hopefully it just reinforces
that they want to purchase. Through you, but you.
Can have the clarity issues in there about shopping or whether
you are purchasing, they are purchasing contractors,
purchasing materials. All that will be explained and
communication expectations. How often can they e-mail you?
How often will they hear from you?
What's the client responsible for?
Like do they need to get permits or do they need to hire the
contractor themselves? A lot of designers work
different ways and so this is where you can specify.
How you like to? Work and it shouldn't feel
confusing or intimidating like it definitely is conversational
as I'm walking through my contract with the client it.
Should really be easy. To understand, for the most
part, if your client can understand what they're saying,
yes. To that creates trust.
So they need to to not see a whole bunch of legal jargon,
which, you know, my first. Early days I was.
Trying to find a contract I could work with, I finally got
like I think it was ASI DS contract or a version of it that
I saw in a textbook that I had for professional practices and
just kind of piece mealed it together.
I didn't think. About actually.
Contacting a contract attorney to look it over, but it's
definitely, I recommend doing that.
But yeah, so I kind of pieced my contract together.
It was a lot of legal things that I really didn't understand.
I'm like, it's in the ASID contract, I'm going to put it in
here. And I had no idea what it was
saying. And so if a client asked me what
does this mean? I, I'd say I, I don't know.
So that doesn't create. Trust, right?
Like what? Are they agreeing to and you
have no idea what they're agreeing to?
Either OK, so your. Contract should be clear,
concise and also that you need to understand it as well.
There shouldn't be anything in there that you don't understand.
So take away. From that is.
That a clear contract. Creates A calmer client
experience and a stronger project foundation.
It's a great starting point. OK, so.
What else should your? Contract be doing.
It should be. Creating protection for you.
So this goes both ways. A contract protects you.
It also protects the. Client.
The reason why you have a contract is on the client's.
Behalf as well, because it protects.
Them from anything that goes wrong and holds everyone
accountable to the same agreement and this is what makes
it. So valuable so.
When emotions are getting high, everyone's upset.
Or stressed that there's. A You know, they're just walking
around on plywood and there's dust everywhere.
Memories can get fuzzy about what that conversation was
initially about. The agreement and situations can
get complicated. And you're not relying on verbal
conversations or old e-mail threads.
You have something in writing that it was signed by both of
you that you can easily go back to and say, oh.
Here's who is. Responsible for this, and here's
how we're going to handle this because my contract says that.
And so your contract can help protect your time, how often
you're going to come to a job. Site or how?
Often you're going to revise a design.
It can protect your money by making sure you get paid and how
much your retainer is and who is going to pay for mistakes and
are you charging your time when you're dealing with deficiencies
Is all that can be clarified in the contract.
It protects your boundaries. Especially with your work.
Hours and this is another thing where it's going to be a
backbone, it's going to hold you accountable.
If your contract says you don't answer emails on the weekend or
after 5:00 at night, then you shouldn't be doing that and you
know that your contract. Says that so.
Don't do that. Or write an e-mail and have it
delay send. So.
You have boundaries in. Place to help you have a healthy
life. And have.
You be a happier. Designer so that your client can
have a better design. It can also help protect your
intellectual. Property so like your.
Designs that. You put together is.
Your intellectual property and the client can't take that
design and go use it for their friend and say, hey friend, I
just, you know, redesigned my house and now I'm going to be
your designer and taking these plans from my designer.
So that is your intellectual. Property.
Like one of the things that has come up in conversation over the
years with other designers is like, sometimes clients will.
Ask for CAD files. No, never.
Give CAD files. To your client, give them the
PDFs. But the CAD files.
Belong to you. You don't want them to
manipulate or change something and have it come back to you and
you'll be responsible for it it. Gives you the ability to
photograph your project. So if it says in your contract
that the client will give you. Access to the project to
photograph it if you wish for your portfolio.
Then they are agreeing to that and they have.
To give you access to the. Project at the end for
photography and of course there can be parameters in place if
you know not revealing any personal information of the
client unless. They're OK with that.
Or you might have a client who needs you to sign an NDA and
then you can have in the contract that you won't be
photographing the project. So that would protect the client
as well and it also. Protects your process.
When delays, changes or cancellations can happen.
So there should be clauses. In your contract that say
changes might happen, designers not responsible for decisions
made by the contractor or the client when the designer is not
present. So sometimes early on in my
career, like a contractor and my client would get together, have
a discussion on the job site without me make a decision, and
then it costs them thousands of dollars because they made the
wrong decision because nobody asked me.
So I am not responsible for that, that poor decision.
That would be the client or the contractor.
They can work it out between themselves and.
So this is also. Where payment terms matter so
much so it can, clearly. Spell out the deposits.
The retainers when invoices. Are due?
Are there late fees applicable if?
They don't pay their invoice on time.
What's refundable and what's not?
If you're supplying products to the client, is any of it
returnable? How are purchasing funds
handled? So can they wire you money?
Do they? Have to write a check what's.
Going on with that and then what happens if a project?
Is paused. Or terminated.
So I definitely have a clause in my contract.
That says that. And I always talk about this
with the client like you don't know what's going to happen six
months from now sometimes. Tragedy strikes.
We don't want that to happen or something good might happen and
your priorities shift and you don't want to pursue the project
any longer. And I always say that's not a
problem You just the moment that you communicate with me that you
want. To stop the project.
We will stop and then we will invoice for anything that was
due up to that moment in time and then we will close the
contract and apply retainers and all that stuff, so.
That's great to have that. In there, in case something does
come up and all of a sudden the client's like, Oh my gosh, you
know, so and so is in the hospital.
We don't know if we can even think about redoing our house
now for the next year or so. Let's put this on pause.
And so they know that they can do that because it's in your
your contract. It gives them Peace of Mind but
also helps. You.
Get protected in case someone like a bad actor might say like.
Oh well. I never liked your design, so
I'm not going to pay for anything that you've done
because they signed a contract that they are going to pay you
for any design that you've done. Then they are responsible for
that. And if photography matters for
your business, which it does, it needs to be in there too.
Like I said, so. If you have a finished project
and you want it in your portfolio and you want to put it
on your social media or use it for marketing, you can't leave
it to chance that just the client is going to be amiable
and let you back in their house. It's best to have it in writing
that they will let you do that. That's why I always.
Strongly encourage new designers to not DIY their contract.
So I would recommend getting a contract.
Lawyer to review your. Agreement I do.
Have a. Recommendation and I can give
you and I'll put that in the show notes of someone who I've
used myself who has templates but then can also modify your
contract or review one that you already have and she can then
adjust it. Make sure you're compliant with
your area and all the things that you are wanting to do to
make sure you are covered and liability.
So you have. A contract lawyer.
Review it, make sure that everything's up.
To par with what you. Are saying that you're going to
do for the client or what the client's responsible for and
don't just borrow someone else's template and hope for the best?
You have to actually verify because each area.
Jurisdiction has different requirements and so you might
need an extra clause or two in there to make sure.
That you are covered. One thing I went to a conference
many years ago and there was a contract attorney there and he
said that one of the most important clauses to have in
your contract was an arbitration clause and that to specify that.
If you go to. Arbitration.
It will be in the city that you live in that you are doing work
in, because otherwise you might have a client or a project
anywhere in the world and they can ask to have arbitration in,
I don't know, Florida and you're in California, and that's going
to increase your cost so you can require that arbitration happens
in your own city, he said. That saved so many designers a
lot of money. So there's a little clause for
you that you want to have. But there's so many others that
might apply to your. Area or your area of expertise.
Too, So definitely check with a contract attorney or a couple of
them if you want to make sure you have all your bases covered.
All right. The last thing I'm going to
touch on that your contract should.
Do for you is. That it creates professionalism.
This is kind of the overlooked part.
Nobody loves contracts, right? Like and you might call it a
letter of agreement to kind of make it sound less formal.
But it's all. Saying the same thing and a
strong. Contract though, tells.
Your client that. You have a real process.
It really just assures. Them that you're a legitimate
business that you. Thought through how you work.
How you design and that you're not just winging it from project
to project. It helps to reinforce that
you're a professional guide and not just a.
Creative. Person with good taste.
That you actually have structure you have.
Responsibility. You're ethical.
All of this does. Wonders for building client
trust in you and for new designers especially this is
powerful because you might not have that 20 years of experience
yet, but you're still growing in confidence and you have a
strong. Process but a.
Strong contract can help. Support you while you.
Grow it. Just really.
Gives you a good. Look, gives you.
Structure to your business it. Helps you hold your boundaries,
like we said, and it makes it easier to lead the client well
and it keeps you from making emotional decisions in the
moment. So there might be times when
you're like. OK, well, just this.
Once I won't take a retainer. Or just this?
Once I will do. 5. Versions of my design for you
instead. Of two and.
So no, you you don't need. To just because you're.
Feeling emotional in the moment. Go back.
Pause. And say like, OK, no, this is
what the contract says. This is how I work.
And this is. How I work best?
If they don't want to sign your contract and want to move on to
a different designer, that's fine and you probably saved.
Yourself a lot of stress also. Keep in mind that people who
might want to. Adjust your.
Contract now there might be something like I think I had an
attorney, one time client attorney who read my contract
and was like. Oh, you actually.
Need to add this in there or something like that and then
that was fine. But there's other people.
Who are like, well, I don't like that you take a retainer, so I'm
going to. Cross this.
Out in your contract and then I'll sign it.
Don't take that person as your client because they are not
respecting how you do business. You don't need to work with them
if they're already making changes from the start.
They're leading the project, they're leading the design and
why are you even there? So that's a.
Huge red flag if they're like. Coming back and fighting you on
your contract. You just say this is how I.
Work. You can take it or leave it,
right? So that's a good.
Thing that came in mind, it gives you something to lean on
and helps you not to be emotional or like if something
goes wrong. Product shows up.
Damaged. Then it helps you understand
who's responsible. Can I bail for this?
Is this my fault? Is this the contractor's fault?
Is it the vendor's fault? And like how does my contract
address this on how? Who pays for it?
It really gives you. Support.
In that way, you don't have to make those exceptions, just say
this is how my process works and that shifts matters.
So professionalism is not just about having beautiful branding
or. Polished website.
It's about. Having the systems underneath
your business that makes a client feel safe working with
you, and your contract is one of those systems, so a strong
contract will help you. Operate like a real.
Business owner and not just a talented designer.
Having a contract and what you should put in your contract is
definitely something we cover in Launch Your Business Boot Camp.
So if you are thinking about starting your business, then we
definitely cover all of this in boot camp because it's so
important and I know that having a contract sometimes can be
intimidating. So like if you.
Want support in developing yours?
Then we can do that together in boot camp.
OK, so that's all about. Contracts not.
Super sexy, but super. Important and it really is your
business bestie. So like I said.
We work on this in boot camp. But we also work.
On contracts in My Design Mentor, if you're in there, if
you want to just have professional help on what you
should be putting in your contract or anything like that,
you can sign it from My Design Mentor.
And just remember your contract's not just your
paperwork. It's not some.
Stack of papers that. Someone signs it's really
important when it goes inside. It's your strongest support
system in your business. And so let's make sure you are
covered in all different ways. All right, that's all I have for
you. This.
Week next week we'll have another great episode and until
then, stay creative. Thanks for listening.
If you love this episode. Please leave a.
Rating and a review. This helps me reach.
Other curious creatives like you if you have a topic request.
Or would like to contact me? Simply head over.
To my website rawarddesign.com. Or e-mail me.
At podcast at R Award. Design.com.