1 00:00:00,040 --> 00:00:02,840 As I'm walking through my contract with the client it. 2 00:00:02,840 --> 00:00:05,160 Should really be easy. To understand, for the most 3 00:00:05,160 --> 00:00:08,600 part, if your client can understand what they're saying, 4 00:00:08,600 --> 00:00:10,360 yes. To that creates trust. 5 00:00:10,480 --> 00:00:15,120 So they need to to not see a whole bunch of legal jargon, 6 00:00:15,520 --> 00:00:17,880 which, you know, my first. Early days I was. 7 00:00:17,880 --> 00:00:20,560 Trying to find a contract I could work with, I finally got 8 00:00:20,560 --> 00:00:23,360 like. I think it was a SIDS contract 9 00:00:23,360 --> 00:00:25,520 or a version of it that I saw in a. 10 00:00:25,520 --> 00:00:30,240 Textbook that I had. For professional practices and 11 00:00:30,760 --> 00:00:32,640 just kind of piece mealed it together. 12 00:00:32,720 --> 00:00:35,600 It was a lot of legal things that I really didn't understand. 13 00:00:35,600 --> 00:00:38,840 I'm like, it's in the ASID contract, I'm going to put it in 14 00:00:38,840 --> 00:00:40,600 here. And I had no idea what it was 15 00:00:40,600 --> 00:00:41,960 saying. And so if a client asked me what 16 00:00:41,960 --> 00:00:44,320 does this mean? I'd, I'd say I, I don't know. 17 00:00:45,120 --> 00:00:47,480 So that doesn't create. Trust right? 18 00:00:47,480 --> 00:00:49,080 Like. What are they agreeing to? 19 00:00:49,080 --> 00:00:51,240 And you have no idea what they're agreeing to either. 20 00:00:52,560 --> 00:00:56,200 You're now listening to design. Curious, a place where you. 21 00:00:56,200 --> 00:00:59,600 Creative One are here to learn. About what it really. 22 00:00:59,600 --> 00:01:02,120 Is like. To be an interior designer, and 23 00:01:02,120 --> 00:01:04,720 I'm your host and mentor, Rebecca Ward. 24 00:01:05,360 --> 00:01:08,600 If you're worried about how to succeed in a creative career. 25 00:01:09,200 --> 00:01:12,240 If you're ready to learn your next steps to become an interior 26 00:01:12,240 --> 00:01:16,640 designer, and if you want the satisfaction of doing something, 27 00:01:16,640 --> 00:01:18,880 you. Love every day you. 28 00:01:18,880 --> 00:01:21,360 Are in the right. Place grab a coffee. 29 00:01:21,440 --> 00:01:23,840 A notebook and let's dig into today's. 30 00:01:23,840 --> 00:01:25,480 Episode. Hello. 31 00:01:25,480 --> 00:01:29,240 And welcome to episode 191 of Design Curious Podcast. 32 00:01:29,760 --> 00:01:34,520 Today on the podcast we are talking about contracts. 33 00:01:35,120 --> 00:01:39,640 Not super fun, but contracts really are your business. 34 00:01:39,640 --> 00:01:42,480 Bestie, because your. Contract's not just. 35 00:01:42,480 --> 00:01:45,880 A piece of paperwork. Or something that you send over. 36 00:01:45,880 --> 00:01:49,440 Because you're supposed to. It's one of the most important 37 00:01:49,440 --> 00:01:52,000 tools in your business. It's your backbone. 38 00:01:52,000 --> 00:01:54,440 It helps keep everything clear all. 39 00:01:54,440 --> 00:01:57,720 Parties are safer, it supports your process, it helps you get 40 00:01:57,720 --> 00:02:00,640 paid. And gives you something solid to 41 00:02:00,640 --> 00:02:02,840 stand on when questions or problems come up. 42 00:02:03,400 --> 00:02:06,360 Especially if you're a newer designer or newer business 43 00:02:06,360 --> 00:02:09,039 owner, this matters more than you think. 44 00:02:09,080 --> 00:02:11,480 A strong contract is not about being cold or. 45 00:02:11,480 --> 00:02:13,640 Rigid. You might just hear the word 46 00:02:13,640 --> 00:02:15,560 contract and you. Start to fall asleep. 47 00:02:16,600 --> 00:02:18,440 Some of you might call. Also a letter of. 48 00:02:18,440 --> 00:02:22,160 Agreement to be a little. Bit less. 49 00:02:22,560 --> 00:02:27,440 Formal or boring, but they're pretty much the same thing and 50 00:02:27,440 --> 00:02:30,640 it's really just something that helps you to be clear and 51 00:02:30,640 --> 00:02:33,840 professional and protected. So I'm going to break down three 52 00:02:33,840 --> 00:02:36,640 things that your contract should be doing for you. 53 00:02:37,360 --> 00:02:40,440 Before we get in there, I want to let you know. 54 00:02:40,440 --> 00:02:43,880 That we have. A webinar coming up. 55 00:02:44,560 --> 00:02:48,600 For those. Who are thinking about starting 56 00:02:48,600 --> 00:02:51,240 a business in interior design. Haven't done it yet. 57 00:02:51,600 --> 00:02:54,920 I have a webinar. To help you explore if you're 58 00:02:54,920 --> 00:02:57,320 ready. For it and also how much is that 59 00:02:57,320 --> 00:02:59,160 going to cost to start the business? 60 00:02:59,680 --> 00:03:01,880 So. Details for that you can sign up 61 00:03:02,160 --> 00:03:04,920 are in the show notes. I'd love to have you there. 62 00:03:04,920 --> 00:03:06,440 And learn to see. If you're ready. 63 00:03:06,440 --> 00:03:08,680 To start your business. If you have what? 64 00:03:08,680 --> 00:03:13,040 It takes and if you have enough money set aside to to really 65 00:03:13,160 --> 00:03:15,600 launch well. OK, so let's. 66 00:03:15,600 --> 00:03:18,680 Get into the episode. So don't tune out because we're 67 00:03:18,680 --> 00:03:21,920 talking about contracts today. I know it doesn't sound super 68 00:03:21,920 --> 00:03:28,080 sexy, but believe me, it is one of the most important parts of 69 00:03:28,360 --> 00:03:32,320 being an interior designer and having your own business and. 70 00:03:32,400 --> 00:03:34,120 It really. Is your business. 71 00:03:34,120 --> 00:03:37,000 Bestie, so let's go. Over the three things your 72 00:03:37,000 --> 00:03:41,520 contract should be doing for you, the first thing is that it 73 00:03:41,720 --> 00:03:46,240 should be creating clarity. One of the kindest things that 74 00:03:46,240 --> 00:03:48,520 you can give to a client is clarity. 75 00:03:48,520 --> 00:03:52,120 It's going to outline and. Specify all the. 76 00:03:52,120 --> 00:03:55,360 Things that you do for them. A good contract will answer 77 00:03:55,360 --> 00:03:58,960 questions before they come issues and it tells the client 78 00:03:58,960 --> 00:04:01,720 what to expect. How your process works? 79 00:04:01,720 --> 00:04:06,600 What's included, what's not included and how communication 80 00:04:06,600 --> 00:04:09,480 will happen? How payments work? 81 00:04:10,040 --> 00:04:12,520 What happens if something changes? 82 00:04:12,960 --> 00:04:17,000 So all of this is huge because. So many client problems don't 83 00:04:17,000 --> 00:04:18,720 start with bad intentions, right? 84 00:04:19,079 --> 00:04:22,480 You're like, yeah, we'll just, you know, wing it and we don't 85 00:04:22,480 --> 00:04:25,200 need a contract. We'll just, you know, I'll just 86 00:04:25,200 --> 00:04:27,800 bill you along the way. Things are going to be fine. 87 00:04:27,800 --> 00:04:30,800 We get along so great, but things can go wrong. 88 00:04:30,800 --> 00:04:33,840 And this is where a contract is really going to be helpful. 89 00:04:34,600 --> 00:04:37,280 Also, when you don't have a contract, you have unclear 90 00:04:37,280 --> 00:04:41,040 expectations for the client. The client is not exactly. 91 00:04:41,520 --> 00:04:43,520 Told how to. Communicate with you. 92 00:04:43,520 --> 00:04:47,080 Maybe they start texting you day and night and demanding that you 93 00:04:47,080 --> 00:04:51,640 respond to them on the weekend, and your contract can tell them 94 00:04:51,880 --> 00:04:54,840 that you don't do that. That you're. 95 00:04:54,840 --> 00:04:58,040 Happy to hear from them, but please e-mail me within 96 00:04:58,280 --> 00:04:59,240 business. Hours. 97 00:04:59,680 --> 00:05:03,760 Or it could be that. You need clarity around. 98 00:05:03,760 --> 00:05:07,320 The project scope. Especially if you're doing fixed 99 00:05:07,320 --> 00:05:09,760 fee at all, the project scope becomes. 100 00:05:10,040 --> 00:05:11,080 So. Critical. 101 00:05:11,840 --> 00:05:15,520 So your contract is going to spell out what is included in 102 00:05:15,640 --> 00:05:20,760 your design fees and what's not included, and at which point it 103 00:05:20,760 --> 00:05:23,720 might roll into from a fixed fee into hourly. 104 00:05:23,720 --> 00:05:26,880 Or even if you're hourly along the way, you still need to. 105 00:05:26,880 --> 00:05:30,040 Clarify the project scope. In my contract. 106 00:05:30,040 --> 00:05:34,400 I like to have all of the scope clarified I give. 107 00:05:34,400 --> 00:05:38,800 Them an estimate of design fees. I tell them actual design fees 108 00:05:38,800 --> 00:05:40,280 may vary. Because. 109 00:05:40,680 --> 00:05:43,680 You know, don't hold me to it, but this is based on past 110 00:05:43,680 --> 00:05:48,760 projects and this is my best guess on what it will be and 111 00:05:49,280 --> 00:05:51,120 then. I also allow. 112 00:05:51,120 --> 00:05:54,560 Room though for I like I am. Great with scope creep. 113 00:05:54,560 --> 00:05:58,600 On a project because I allow room for them to add on, so 114 00:05:58,600 --> 00:06:00,920 maybe we get started. They're just wanting to do their 115 00:06:00,920 --> 00:06:03,560 kitchen. We get into the process. 116 00:06:03,560 --> 00:06:05,520 They love it. And they're like, you know, 117 00:06:05,520 --> 00:06:06,440 while. We're here. 118 00:06:06,440 --> 00:06:09,440 I also. Need to get new dining room 119 00:06:09,440 --> 00:06:11,760 furniture and I need new lighting and new. 120 00:06:11,760 --> 00:06:13,520 Brussels. But all it's it's like. 121 00:06:13,840 --> 00:06:15,680 Things that they didn't think they wanted to. 122 00:06:15,680 --> 00:06:17,600 Do to start with. Because they weren't sure if 123 00:06:17,600 --> 00:06:21,480 they could trust me or if they really were going to like 124 00:06:21,480 --> 00:06:23,640 working with a designer. But once they decide that they 125 00:06:23,640 --> 00:06:25,720 do, then they want to add these things on. 126 00:06:25,880 --> 00:06:27,880 No problem. The contract allows for that. 127 00:06:27,880 --> 00:06:29,840 We don't have to. Revisit it. 128 00:06:29,840 --> 00:06:33,640 It allows scope to be added. At the and will be. 129 00:06:33,640 --> 00:06:37,480 Billed at the hourly rate so. No problem there, the contract 130 00:06:37,480 --> 00:06:38,920 is already. Set up for that. 131 00:06:39,160 --> 00:06:40,960 And it makes. It easy peasy. 132 00:06:41,640 --> 00:06:44,600 And I know I'm going to get paid for anything that gets added on, 133 00:06:44,960 --> 00:06:46,800 and they know that they're going to pay for it. 134 00:06:47,400 --> 00:06:48,680 So that's huge. It gives. 135 00:06:48,680 --> 00:06:51,800 Clarity around that. It also gives. 136 00:06:51,800 --> 00:06:55,000 Clarity around when you get. Paid so it should. 137 00:06:55,000 --> 00:06:58,800 Be telling the client that you bill monthly. 138 00:06:58,800 --> 00:07:03,080 If you do hourly, maybe you bill every two weeks or you can. 139 00:07:03,280 --> 00:07:05,960 Bill, whatever you like. But make sure that you are 140 00:07:05,960 --> 00:07:08,840 billing 'cause then that also keeps you accountable as the 141 00:07:08,840 --> 00:07:11,760 designer. The client is expecting a bill 142 00:07:11,760 --> 00:07:14,280 every month. You better not be going three 143 00:07:14,280 --> 00:07:17,400 months without billing them. They'll be asking for it, and 144 00:07:17,400 --> 00:07:19,760 they don't want to see a huge. Bill Every. 145 00:07:19,760 --> 00:07:21,640 Three months they want to be spaced out. 146 00:07:21,640 --> 00:07:25,080 Probably it's more. Feasible that way. 147 00:07:25,080 --> 00:07:29,040 So so yeah, it it. Says when you get paid. 148 00:07:29,160 --> 00:07:31,160 How you get paid? Do you accept? 149 00:07:31,600 --> 00:07:35,920 Checks, cash, credit cards. Venmo how do you want to get 150 00:07:35,920 --> 00:07:37,240 paid? What are the best? 151 00:07:37,680 --> 00:07:39,880 Practices and you get to. Decide how they. 152 00:07:39,880 --> 00:07:44,720 Send you money and then it keeps the client from assuming things 153 00:07:44,720 --> 00:07:47,560 that are never actually promised to them. 154 00:07:47,600 --> 00:07:53,040 So any additional services. Maybe you don't include 155 00:07:53,200 --> 00:07:57,480 accessorizing in your design fee estimate. 156 00:07:57,800 --> 00:08:00,720 Then it can. The client will say. 157 00:08:00,720 --> 00:08:02,240 I oh, I thought. That was included. 158 00:08:02,240 --> 00:08:04,720 Well, no, it's not. It says here in the contract 159 00:08:05,040 --> 00:08:07,800 that that can be added as an additional thing. 160 00:08:08,560 --> 00:08:12,200 So it really. Is defining all those things and 161 00:08:12,200 --> 00:08:16,360 I like to go over everything and give that clarity in the initial 162 00:08:16,360 --> 00:08:19,320 consultation and so it's going to go over my. 163 00:08:19,320 --> 00:08:22,600 Services how I work. I follow a. 164 00:08:23,000 --> 00:08:26,080 Certain program with each. Project I go through. 165 00:08:26,080 --> 00:08:29,040 Each step doesn't matter. The size or the scope of? 166 00:08:29,040 --> 00:08:32,440 The project, everything goes through the same process. 167 00:08:32,840 --> 00:08:36,240 And so my contract will explain to them how I do that process. 168 00:08:36,240 --> 00:08:38,440 Like first we can meet with the consultation, that's what we're 169 00:08:38,440 --> 00:08:41,559 doing now and then next week gather information. 170 00:08:41,559 --> 00:08:44,520 And so that's when I'm going to come back and take measurements 171 00:08:44,520 --> 00:08:46,760 and photos and we'll look at Pinterest boards. 172 00:08:46,760 --> 00:08:49,920 And, you know, so I just kind of talked them through the process. 173 00:08:49,920 --> 00:08:53,000 And in the meantime, they're getting excited because they can 174 00:08:53,360 --> 00:08:54,640 see. That their project. 175 00:08:54,640 --> 00:08:57,480 Is going to be handled. Well, but also like. 176 00:08:57,960 --> 00:09:01,240 There are tangible steps that they can look forward to on 177 00:09:01,240 --> 00:09:05,720 getting their dream home realized and it will help them 178 00:09:05,720 --> 00:09:07,560 understand the. Phases of the project. 179 00:09:07,560 --> 00:09:08,920 And I kind of talk. About how there's. 180 00:09:08,920 --> 00:09:12,120 Highs and lows. It's such a great talking tool 181 00:09:12,120 --> 00:09:14,640 to have by my side. As I'm explaining it in the 182 00:09:14,640 --> 00:09:18,520 initial consultation, I can tell them that like OK, when we get 183 00:09:18,520 --> 00:09:24,160 into project management and demos happening and you're, you 184 00:09:24,160 --> 00:09:26,000 know, maybe they're. They decide to live. 185 00:09:26,000 --> 00:09:29,520 Through the construction, I'm warning them and I will remind 186 00:09:29,520 --> 00:09:33,040 them later again how challenging that's going to be for them. 187 00:09:33,640 --> 00:09:37,080 You know, maybe really consider getting an Airbnb while they're 188 00:09:37,520 --> 00:09:39,320 demoing or you know, something like that. 189 00:09:39,320 --> 00:09:42,120 We have we. Are able to talk through a. 190 00:09:42,120 --> 00:09:44,920 Lot of issues that might come up and maybe things that they 191 00:09:44,920 --> 00:09:48,960 hadn't thought about before. It will explain revisions. 192 00:09:48,960 --> 00:09:53,040 How many times are you going to revise a design or how many 193 00:09:53,640 --> 00:09:56,720 versions are you going to show them at the presentation? 194 00:09:57,160 --> 00:10:00,120 What are the timelines like? How long does it take to go from 195 00:10:00,120 --> 00:10:03,120 that initial consultation to a presentation? 196 00:10:03,800 --> 00:10:07,120 For some designers it might take 4 weeks, for some it might take 197 00:10:07,120 --> 00:10:10,040 four months and. So this gives clarity. 198 00:10:10,040 --> 00:10:13,280 To the client on what they can expect on how. 199 00:10:13,280 --> 00:10:16,760 Fast their project. Is going to move and then it 200 00:10:16,760 --> 00:10:17,680 talks. Also about. 201 00:10:17,680 --> 00:10:19,400 Purchasing procedures. So here's. 202 00:10:19,400 --> 00:10:22,440 Where? A lot of designers complain 203 00:10:22,440 --> 00:10:26,520 about clients shopping them and well, you can't. 204 00:10:26,520 --> 00:10:31,000 You can put parameters in there and say you can't shop me or you 205 00:10:31,000 --> 00:10:33,160 can't. I'm not going to give you any 206 00:10:33,160 --> 00:10:36,600 information that you can go and find the things yourself. 207 00:10:37,000 --> 00:10:39,200 Instead what I. Like to do is. 208 00:10:39,200 --> 00:10:42,880 Say the designer will purchase, suggest and. 209 00:10:43,320 --> 00:10:46,520 Have available for purchase. All of these things you'll be 210 00:10:46,520 --> 00:10:49,720 purchasing through the designer. Wholesale things only available 211 00:10:49,720 --> 00:10:53,080 through the designer. If there's any retail items, 212 00:10:53,760 --> 00:10:55,080 it'll be sold to the client at the. 213 00:10:55,080 --> 00:10:57,960 Retail price. We'll you know be charging to 214 00:10:57,960 --> 00:11:01,880 procure them, but if the client. Chooses to. 215 00:11:02,360 --> 00:11:05,160 Find an item on their own. Maybe they love shopping, 216 00:11:05,160 --> 00:11:07,080 Facebook marketplace or something like that. 217 00:11:07,600 --> 00:11:10,240 I'm not going to keep them from doing something that they. 218 00:11:10,240 --> 00:11:13,440 Love to do but. Then I'm not responsible for 219 00:11:13,440 --> 00:11:14,920 that item, they have to. Store. 220 00:11:14,920 --> 00:11:17,440 It or if they're ordering off of Wayfair or something, then they 221 00:11:17,440 --> 00:11:21,880 have to receive it, inspect it, take care of any damage claims. 222 00:11:21,880 --> 00:11:23,560 I'm not going to touch that at all. 223 00:11:23,640 --> 00:11:26,960 That's completely up to them. So a lot of times they'll. 224 00:11:26,960 --> 00:11:29,680 Quickly realize that. OK, yeah, I want to pay for the 225 00:11:29,680 --> 00:11:33,560 designer to have it all taken care of, have it stored in in 226 00:11:33,560 --> 00:11:35,920 their warehouse until. It's ready to deliver because 227 00:11:35,920 --> 00:11:37,120 that's the luxury as well, 'cause. 228 00:11:37,120 --> 00:11:39,160 Then you ought to drop it into. The garage where it's. 229 00:11:39,160 --> 00:11:42,200 Already full of plumbing fixtures or something like that, 230 00:11:42,840 --> 00:11:45,080 it becomes. Clear that why we have our 231 00:11:45,080 --> 00:11:48,520 process the way it is so. Hopefully it just reinforces 232 00:11:48,520 --> 00:11:50,200 that they want to purchase. Through you, but you. 233 00:11:50,200 --> 00:11:55,720 Can have the clarity issues in there about shopping or whether 234 00:11:55,720 --> 00:11:58,280 you are purchasing, they are purchasing contractors, 235 00:11:58,280 --> 00:12:03,040 purchasing materials. All that will be explained and 236 00:12:03,040 --> 00:12:07,320 communication expectations. How often can they e-mail you? 237 00:12:07,320 --> 00:12:08,880 How often will they hear from you? 238 00:12:09,480 --> 00:12:11,520 What's the client responsible for? 239 00:12:12,040 --> 00:12:17,640 Like do they need to get permits or do they need to hire the 240 00:12:17,640 --> 00:12:20,680 contractor themselves? A lot of designers work 241 00:12:20,680 --> 00:12:23,720 different ways and so this is where you can specify. 242 00:12:23,720 --> 00:12:26,640 How you like to? Work and it shouldn't feel 243 00:12:26,640 --> 00:12:30,200 confusing or intimidating like it definitely is conversational 244 00:12:30,200 --> 00:12:33,000 as I'm walking through my contract with the client it. 245 00:12:33,000 --> 00:12:35,360 Should really be easy. To understand, for the most 246 00:12:35,360 --> 00:12:38,840 part, if your client can understand what they're saying, 247 00:12:38,840 --> 00:12:40,600 yes. To that creates trust. 248 00:12:40,680 --> 00:12:45,360 So they need to to not see a whole bunch of legal jargon, 249 00:12:45,760 --> 00:12:48,120 which, you know, my first. Early days I was. 250 00:12:48,120 --> 00:12:50,800 Trying to find a contract I could work with, I finally got 251 00:12:50,800 --> 00:12:55,360 like I think it was ASI DS contract or a version of it that 252 00:12:55,360 --> 00:13:00,800 I saw in a textbook that I had for professional practices and 253 00:13:01,320 --> 00:13:03,240 just kind of piece mealed it together. 254 00:13:03,360 --> 00:13:05,680 I didn't think. About actually. 255 00:13:05,680 --> 00:13:10,600 Contacting a contract attorney to look it over, but it's 256 00:13:10,880 --> 00:13:12,640 definitely, I recommend doing that. 257 00:13:12,920 --> 00:13:14,920 But yeah, so I kind of pieced my contract together. 258 00:13:14,920 --> 00:13:17,840 It was a lot of legal things that I really didn't understand. 259 00:13:17,840 --> 00:13:21,040 I'm like, it's in the ASID contract, I'm going to put it in 260 00:13:21,040 --> 00:13:22,800 here. And I had no idea what it was 261 00:13:22,800 --> 00:13:24,160 saying. And so if a client asked me what 262 00:13:24,160 --> 00:13:26,520 does this mean? I, I'd say I, I don't know. 263 00:13:27,360 --> 00:13:29,720 So that doesn't create. Trust, right? 264 00:13:29,720 --> 00:13:31,600 Like what? Are they agreeing to and you 265 00:13:31,600 --> 00:13:33,080 have no idea what they're agreeing to? 266 00:13:33,120 --> 00:13:35,600 Either OK, so your. Contract should be clear, 267 00:13:35,600 --> 00:13:39,680 concise and also that you need to understand it as well. 268 00:13:39,840 --> 00:13:42,240 There shouldn't be anything in there that you don't understand. 269 00:13:42,640 --> 00:13:44,600 So take away. From that is. 270 00:13:44,600 --> 00:13:48,160 That a clear contract. Creates A calmer client 271 00:13:48,160 --> 00:13:51,240 experience and a stronger project foundation. 272 00:13:52,000 --> 00:13:54,720 It's a great starting point. OK, so. 273 00:13:54,720 --> 00:13:57,040 What else should your? Contract be doing. 274 00:13:57,280 --> 00:14:00,440 It should be. Creating protection for you. 275 00:14:01,080 --> 00:14:04,800 So this goes both ways. A contract protects you. 276 00:14:05,200 --> 00:14:06,720 It also protects the. Client. 277 00:14:07,360 --> 00:14:09,960 The reason why you have a contract is on the client's. 278 00:14:09,960 --> 00:14:12,320 Behalf as well, because it protects. 279 00:14:12,320 --> 00:14:15,320 Them from anything that goes wrong and holds everyone 280 00:14:15,320 --> 00:14:19,440 accountable to the same agreement and this is what makes 281 00:14:19,440 --> 00:14:20,480 it. So valuable so. 282 00:14:20,680 --> 00:14:23,840 When emotions are getting high, everyone's upset. 283 00:14:23,840 --> 00:14:27,040 Or stressed that there's. A You know, they're just walking 284 00:14:27,040 --> 00:14:29,440 around on plywood and there's dust everywhere. 285 00:14:29,960 --> 00:14:33,920 Memories can get fuzzy about what that conversation was 286 00:14:33,920 --> 00:14:37,560 initially about. The agreement and situations can 287 00:14:37,560 --> 00:14:40,840 get complicated. And you're not relying on verbal 288 00:14:40,840 --> 00:14:43,040 conversations or old e-mail threads. 289 00:14:43,040 --> 00:14:45,840 You have something in writing that it was signed by both of 290 00:14:45,840 --> 00:14:48,400 you that you can easily go back to and say, oh. 291 00:14:48,920 --> 00:14:52,280 Here's who is. Responsible for this, and here's 292 00:14:52,280 --> 00:14:55,360 how we're going to handle this because my contract says that. 293 00:14:56,120 --> 00:15:01,160 And so your contract can help protect your time, how often 294 00:15:01,160 --> 00:15:03,160 you're going to come to a job. Site or how? 295 00:15:03,160 --> 00:15:05,160 Often you're going to revise a design. 296 00:15:05,720 --> 00:15:11,560 It can protect your money by making sure you get paid and how 297 00:15:11,560 --> 00:15:17,240 much your retainer is and who is going to pay for mistakes and 298 00:15:17,240 --> 00:15:21,120 are you charging your time when you're dealing with deficiencies 299 00:15:21,560 --> 00:15:23,840 Is all that can be clarified in the contract. 300 00:15:24,440 --> 00:15:28,600 It protects your boundaries. Especially with your work. 301 00:15:28,600 --> 00:15:32,600 Hours and this is another thing where it's going to be a 302 00:15:32,600 --> 00:15:34,640 backbone, it's going to hold you accountable. 303 00:15:35,360 --> 00:15:39,000 If your contract says you don't answer emails on the weekend or 304 00:15:39,000 --> 00:15:43,400 after 5:00 at night, then you shouldn't be doing that and you 305 00:15:43,400 --> 00:15:45,120 know that your contract. Says that so. 306 00:15:45,240 --> 00:15:47,520 Don't do that. Or write an e-mail and have it 307 00:15:47,520 --> 00:15:49,720 delay send. So. 308 00:15:49,960 --> 00:15:53,600 You have boundaries in. Place to help you have a healthy 309 00:15:53,600 --> 00:15:54,400 life. And have. 310 00:15:54,400 --> 00:15:58,000 You be a happier. Designer so that your client can 311 00:15:58,000 --> 00:16:01,400 have a better design. It can also help protect your 312 00:16:01,400 --> 00:16:03,280 intellectual. Property so like your. 313 00:16:03,280 --> 00:16:05,680 Designs that. You put together is. 314 00:16:05,680 --> 00:16:10,160 Your intellectual property and the client can't take that 315 00:16:10,160 --> 00:16:16,240 design and go use it for their friend and say, hey friend, I 316 00:16:16,240 --> 00:16:19,520 just, you know, redesigned my house and now I'm going to be 317 00:16:19,520 --> 00:16:23,120 your designer and taking these plans from my designer. 318 00:16:23,120 --> 00:16:25,880 So that is your intellectual. Property. 319 00:16:26,360 --> 00:16:29,200 Like one of the things that has come up in conversation over the 320 00:16:29,200 --> 00:16:32,960 years with other designers is like, sometimes clients will. 321 00:16:32,960 --> 00:16:35,600 Ask for CAD files. No, never. 322 00:16:35,600 --> 00:16:38,600 Give CAD files. To your client, give them the 323 00:16:38,600 --> 00:16:40,360 PDFs. But the CAD files. 324 00:16:40,360 --> 00:16:42,920 Belong to you. You don't want them to 325 00:16:42,920 --> 00:16:45,960 manipulate or change something and have it come back to you and 326 00:16:45,960 --> 00:16:49,440 you'll be responsible for it it. Gives you the ability to 327 00:16:49,440 --> 00:16:52,080 photograph your project. So if it says in your contract 328 00:16:52,080 --> 00:16:54,960 that the client will give you. Access to the project to 329 00:16:54,960 --> 00:16:58,160 photograph it if you wish for your portfolio. 330 00:16:58,680 --> 00:17:01,600 Then they are agreeing to that and they have. 331 00:17:01,600 --> 00:17:05,480 To give you access to the. Project at the end for 332 00:17:05,480 --> 00:17:09,440 photography and of course there can be parameters in place if 333 00:17:09,720 --> 00:17:12,440 you know not revealing any personal information of the 334 00:17:12,440 --> 00:17:14,680 client unless. They're OK with that. 335 00:17:15,079 --> 00:17:19,160 Or you might have a client who needs you to sign an NDA and 336 00:17:19,160 --> 00:17:22,160 then you can have in the contract that you won't be 337 00:17:22,160 --> 00:17:26,720 photographing the project. So that would protect the client 338 00:17:26,720 --> 00:17:29,800 as well and it also. Protects your process. 339 00:17:29,800 --> 00:17:33,960 When delays, changes or cancellations can happen. 340 00:17:34,720 --> 00:17:38,080 So there should be clauses. In your contract that say 341 00:17:38,400 --> 00:17:42,760 changes might happen, designers not responsible for decisions 342 00:17:42,760 --> 00:17:47,560 made by the contractor or the client when the designer is not 343 00:17:47,560 --> 00:17:50,520 present. So sometimes early on in my 344 00:17:50,520 --> 00:17:54,640 career, like a contractor and my client would get together, have 345 00:17:55,080 --> 00:17:58,400 a discussion on the job site without me make a decision, and 346 00:17:58,400 --> 00:18:01,560 then it costs them thousands of dollars because they made the 347 00:18:01,560 --> 00:18:04,200 wrong decision because nobody asked me. 348 00:18:04,520 --> 00:18:10,040 So I am not responsible for that, that poor decision. 349 00:18:10,360 --> 00:18:12,400 That would be the client or the contractor. 350 00:18:12,400 --> 00:18:14,800 They can work it out between themselves and. 351 00:18:14,800 --> 00:18:19,040 So this is also. Where payment terms matter so 352 00:18:19,040 --> 00:18:24,240 much so it can, clearly. Spell out the deposits. 353 00:18:24,240 --> 00:18:26,800 The retainers when invoices. Are due? 354 00:18:27,440 --> 00:18:29,360 Are there late fees applicable if? 355 00:18:29,360 --> 00:18:30,960 They don't pay their invoice on time. 356 00:18:31,800 --> 00:18:33,640 What's refundable and what's not? 357 00:18:33,640 --> 00:18:37,080 If you're supplying products to the client, is any of it 358 00:18:37,080 --> 00:18:41,240 returnable? How are purchasing funds 359 00:18:41,240 --> 00:18:44,520 handled? So can they wire you money? 360 00:18:44,840 --> 00:18:46,640 Do they? Have to write a check what's. 361 00:18:46,640 --> 00:18:50,160 Going on with that and then what happens if a project? 362 00:18:50,160 --> 00:18:51,720 Is paused. Or terminated. 363 00:18:51,720 --> 00:18:54,000 So I definitely have a clause in my contract. 364 00:18:54,000 --> 00:18:57,320 That says that. And I always talk about this 365 00:18:57,320 --> 00:19:00,920 with the client like you don't know what's going to happen six 366 00:19:00,920 --> 00:19:03,840 months from now sometimes. Tragedy strikes. 367 00:19:03,840 --> 00:19:07,960 We don't want that to happen or something good might happen and 368 00:19:07,960 --> 00:19:11,560 your priorities shift and you don't want to pursue the project 369 00:19:11,560 --> 00:19:13,880 any longer. And I always say that's not a 370 00:19:13,880 --> 00:19:19,400 problem You just the moment that you communicate with me that you 371 00:19:19,400 --> 00:19:21,360 want. To stop the project. 372 00:19:21,360 --> 00:19:26,240 We will stop and then we will invoice for anything that was 373 00:19:26,240 --> 00:19:30,920 due up to that moment in time and then we will close the 374 00:19:30,920 --> 00:19:34,960 contract and apply retainers and all that stuff, so. 375 00:19:35,480 --> 00:19:38,520 That's great to have that. In there, in case something does 376 00:19:38,520 --> 00:19:41,440 come up and all of a sudden the client's like, Oh my gosh, you 377 00:19:41,440 --> 00:19:43,440 know, so and so is in the hospital. 378 00:19:43,440 --> 00:19:48,560 We don't know if we can even think about redoing our house 379 00:19:48,560 --> 00:19:51,960 now for the next year or so. Let's put this on pause. 380 00:19:51,960 --> 00:19:55,280 And so they know that they can do that because it's in your 381 00:19:55,360 --> 00:19:58,560 your contract. It gives them Peace of Mind but 382 00:19:58,560 --> 00:20:00,040 also helps. You. 383 00:20:00,360 --> 00:20:04,880 Get protected in case someone like a bad actor might say like. 384 00:20:04,880 --> 00:20:07,920 Oh well. I never liked your design, so 385 00:20:07,920 --> 00:20:10,360 I'm not going to pay for anything that you've done 386 00:20:10,880 --> 00:20:13,560 because they signed a contract that they are going to pay you 387 00:20:13,560 --> 00:20:17,640 for any design that you've done. Then they are responsible for 388 00:20:17,640 --> 00:20:20,680 that. And if photography matters for 389 00:20:20,680 --> 00:20:23,280 your business, which it does, it needs to be in there too. 390 00:20:23,280 --> 00:20:26,080 Like I said, so. If you have a finished project 391 00:20:26,080 --> 00:20:28,840 and you want it in your portfolio and you want to put it 392 00:20:28,840 --> 00:20:32,720 on your social media or use it for marketing, you can't leave 393 00:20:32,720 --> 00:20:36,320 it to chance that just the client is going to be amiable 394 00:20:36,320 --> 00:20:39,800 and let you back in their house. It's best to have it in writing 395 00:20:39,800 --> 00:20:42,480 that they will let you do that. That's why I always. 396 00:20:42,560 --> 00:20:48,080 Strongly encourage new designers to not DIY their contract. 397 00:20:48,080 --> 00:20:51,080 So I would recommend getting a contract. 398 00:20:51,080 --> 00:20:53,760 Lawyer to review your. Agreement I do. 399 00:20:53,760 --> 00:20:56,000 Have a. Recommendation and I can give 400 00:20:56,000 --> 00:20:58,920 you and I'll put that in the show notes of someone who I've 401 00:20:58,920 --> 00:21:04,280 used myself who has templates but then can also modify your 402 00:21:04,280 --> 00:21:08,240 contract or review one that you already have and she can then 403 00:21:08,600 --> 00:21:11,000 adjust it. Make sure you're compliant with 404 00:21:11,000 --> 00:21:15,360 your area and all the things that you are wanting to do to 405 00:21:15,360 --> 00:21:17,640 make sure you are covered and liability. 406 00:21:18,400 --> 00:21:20,000 So you have. A contract lawyer. 407 00:21:20,000 --> 00:21:23,680 Review it, make sure that everything's up. 408 00:21:23,680 --> 00:21:27,800 To par with what you. Are saying that you're going to 409 00:21:27,800 --> 00:21:32,080 do for the client or what the client's responsible for and 410 00:21:32,160 --> 00:21:35,120 don't just borrow someone else's template and hope for the best? 411 00:21:35,120 --> 00:21:38,760 You have to actually verify because each area. 412 00:21:39,360 --> 00:21:42,800 Jurisdiction has different requirements and so you might 413 00:21:42,800 --> 00:21:45,760 need an extra clause or two in there to make sure. 414 00:21:45,760 --> 00:21:49,400 That you are covered. One thing I went to a conference 415 00:21:49,520 --> 00:21:52,560 many years ago and there was a contract attorney there and he 416 00:21:53,040 --> 00:21:56,360 said that one of the most important clauses to have in 417 00:21:56,360 --> 00:22:01,360 your contract was an arbitration clause and that to specify that. 418 00:22:01,360 --> 00:22:02,680 If you go to. Arbitration. 419 00:22:02,680 --> 00:22:07,640 It will be in the city that you live in that you are doing work 420 00:22:07,640 --> 00:22:11,080 in, because otherwise you might have a client or a project 421 00:22:11,080 --> 00:22:15,120 anywhere in the world and they can ask to have arbitration in, 422 00:22:15,480 --> 00:22:18,360 I don't know, Florida and you're in California, and that's going 423 00:22:18,360 --> 00:22:22,160 to increase your cost so you can require that arbitration happens 424 00:22:22,160 --> 00:22:26,360 in your own city, he said. That saved so many designers a 425 00:22:26,360 --> 00:22:29,840 lot of money. So there's a little clause for 426 00:22:29,840 --> 00:22:32,200 you that you want to have. But there's so many others that 427 00:22:32,560 --> 00:22:36,480 might apply to your. Area or your area of expertise. 428 00:22:36,480 --> 00:22:40,760 Too, So definitely check with a contract attorney or a couple of 429 00:22:40,760 --> 00:22:43,920 them if you want to make sure you have all your bases covered. 430 00:22:44,560 --> 00:22:47,000 All right. The last thing I'm going to 431 00:22:47,000 --> 00:22:48,320 touch on that your contract should. 432 00:22:48,320 --> 00:22:52,000 Do for you is. That it creates professionalism. 433 00:22:52,800 --> 00:22:54,640 This is kind of the overlooked part. 434 00:22:54,640 --> 00:22:58,600 Nobody loves contracts, right? Like and you might call it a 435 00:22:58,600 --> 00:23:01,680 letter of agreement to kind of make it sound less formal. 436 00:23:02,240 --> 00:23:05,800 But it's all. Saying the same thing and a 437 00:23:05,800 --> 00:23:07,280 strong. Contract though, tells. 438 00:23:07,280 --> 00:23:09,560 Your client that. You have a real process. 439 00:23:09,560 --> 00:23:13,320 It really just assures. Them that you're a legitimate 440 00:23:13,320 --> 00:23:17,920 business that you. Thought through how you work. 441 00:23:18,520 --> 00:23:22,240 How you design and that you're not just winging it from project 442 00:23:22,240 --> 00:23:24,760 to project. It helps to reinforce that 443 00:23:24,760 --> 00:23:26,640 you're a professional guide and not just a. 444 00:23:26,640 --> 00:23:28,360 Creative. Person with good taste. 445 00:23:28,360 --> 00:23:30,320 That you actually have structure you have. 446 00:23:30,320 --> 00:23:33,440 Responsibility. You're ethical. 447 00:23:33,880 --> 00:23:37,960 All of this does. Wonders for building client 448 00:23:37,960 --> 00:23:41,440 trust in you and for new designers especially this is 449 00:23:41,440 --> 00:23:45,000 powerful because you might not have that 20 years of experience 450 00:23:45,040 --> 00:23:48,720 yet, but you're still growing in confidence and you have a 451 00:23:48,720 --> 00:23:50,200 strong. Process but a. 452 00:23:50,200 --> 00:23:52,960 Strong contract can help. Support you while you. 453 00:23:52,960 --> 00:23:54,360 Grow it. Just really. 454 00:23:54,520 --> 00:23:56,400 Gives you a good. Look, gives you. 455 00:23:56,400 --> 00:23:59,480 Structure to your business it. Helps you hold your boundaries, 456 00:23:59,480 --> 00:24:02,800 like we said, and it makes it easier to lead the client well 457 00:24:02,800 --> 00:24:05,640 and it keeps you from making emotional decisions in the 458 00:24:05,640 --> 00:24:06,880 moment. So there might be times when 459 00:24:06,880 --> 00:24:09,400 you're like. OK, well, just this. 460 00:24:09,400 --> 00:24:13,200 Once I won't take a retainer. Or just this? 461 00:24:13,200 --> 00:24:17,600 Once I will do. 5. Versions of my design for you 462 00:24:17,600 --> 00:24:18,640 instead. Of two and. 463 00:24:19,240 --> 00:24:22,640 So no, you you don't need. To just because you're. 464 00:24:22,640 --> 00:24:24,640 Feeling emotional in the moment. Go back. 465 00:24:25,160 --> 00:24:26,720 Pause. And say like, OK, no, this is 466 00:24:26,720 --> 00:24:29,120 what the contract says. This is how I work. 467 00:24:29,120 --> 00:24:30,560 And this is. How I work best? 468 00:24:31,360 --> 00:24:34,120 If they don't want to sign your contract and want to move on to 469 00:24:34,120 --> 00:24:36,320 a different designer, that's fine and you probably saved. 470 00:24:36,320 --> 00:24:40,600 Yourself a lot of stress also. Keep in mind that people who 471 00:24:40,600 --> 00:24:42,280 might want to. Adjust your. 472 00:24:42,280 --> 00:24:48,000 Contract now there might be something like I think I had an 473 00:24:48,000 --> 00:24:52,280 attorney, one time client attorney who read my contract 474 00:24:52,280 --> 00:24:54,120 and was like. Oh, you actually. 475 00:24:54,440 --> 00:24:56,840 Need to add this in there or something like that and then 476 00:24:56,840 --> 00:24:59,360 that was fine. But there's other people. 477 00:24:59,360 --> 00:25:04,000 Who are like, well, I don't like that you take a retainer, so I'm 478 00:25:04,000 --> 00:25:05,120 going to. Cross this. 479 00:25:05,120 --> 00:25:07,680 Out in your contract and then I'll sign it. 480 00:25:08,560 --> 00:25:11,160 Don't take that person as your client because they are not 481 00:25:11,160 --> 00:25:15,080 respecting how you do business. You don't need to work with them 482 00:25:15,560 --> 00:25:18,760 if they're already making changes from the start. 483 00:25:18,760 --> 00:25:22,120 They're leading the project, they're leading the design and 484 00:25:22,200 --> 00:25:24,240 why are you even there? So that's a. 485 00:25:24,240 --> 00:25:27,880 Huge red flag if they're like. Coming back and fighting you on 486 00:25:27,880 --> 00:25:30,840 your contract. You just say this is how I. 487 00:25:30,840 --> 00:25:32,360 Work. You can take it or leave it, 488 00:25:32,360 --> 00:25:34,560 right? So that's a good. 489 00:25:34,560 --> 00:25:37,480 Thing that came in mind, it gives you something to lean on 490 00:25:37,480 --> 00:25:40,920 and helps you not to be emotional or like if something 491 00:25:40,920 --> 00:25:42,800 goes wrong. Product shows up. 492 00:25:42,800 --> 00:25:46,240 Damaged. Then it helps you understand 493 00:25:46,480 --> 00:25:48,400 who's responsible. Can I bail for this? 494 00:25:48,400 --> 00:25:50,600 Is this my fault? Is this the contractor's fault? 495 00:25:50,600 --> 00:25:53,720 Is it the vendor's fault? And like how does my contract 496 00:25:53,720 --> 00:25:56,480 address this on how? Who pays for it? 497 00:25:57,080 --> 00:25:58,600 It really gives you. Support. 498 00:25:58,600 --> 00:26:02,960 In that way, you don't have to make those exceptions, just say 499 00:26:02,960 --> 00:26:06,640 this is how my process works and that shifts matters. 500 00:26:06,920 --> 00:26:10,160 So professionalism is not just about having beautiful branding 501 00:26:10,160 --> 00:26:11,280 or. Polished website. 502 00:26:11,280 --> 00:26:14,000 It's about. Having the systems underneath 503 00:26:14,000 --> 00:26:17,160 your business that makes a client feel safe working with 504 00:26:17,160 --> 00:26:22,520 you, and your contract is one of those systems, so a strong 505 00:26:22,520 --> 00:26:24,640 contract will help you. Operate like a real. 506 00:26:24,640 --> 00:26:27,440 Business owner and not just a talented designer. 507 00:26:28,040 --> 00:26:30,960 Having a contract and what you should put in your contract is 508 00:26:30,960 --> 00:26:34,960 definitely something we cover in Launch Your Business Boot Camp. 509 00:26:34,960 --> 00:26:38,560 So if you are thinking about starting your business, then we 510 00:26:38,560 --> 00:26:42,560 definitely cover all of this in boot camp because it's so 511 00:26:42,560 --> 00:26:47,040 important and I know that having a contract sometimes can be 512 00:26:47,040 --> 00:26:49,080 intimidating. So like if you. 513 00:26:49,200 --> 00:26:52,320 Want support in developing yours? 514 00:26:52,320 --> 00:26:54,160 Then we can do that together in boot camp. 515 00:26:54,840 --> 00:26:56,880 OK, so that's all about. Contracts not. 516 00:26:56,880 --> 00:27:00,560 Super sexy, but super. Important and it really is your 517 00:27:00,560 --> 00:27:09,840 business bestie. So like I said. 518 00:27:09,840 --> 00:27:12,720 We work on this in boot camp. But we also work. 519 00:27:12,720 --> 00:27:15,560 On contracts in My Design Mentor, if you're in there, if 520 00:27:15,560 --> 00:27:18,880 you want to just have professional help on what you 521 00:27:18,880 --> 00:27:21,400 should be putting in your contract or anything like that, 522 00:27:22,000 --> 00:27:23,880 you can sign it from My Design Mentor. 523 00:27:24,280 --> 00:27:27,080 And just remember your contract's not just your 524 00:27:27,080 --> 00:27:28,440 paperwork. It's not some. 525 00:27:28,640 --> 00:27:31,720 Stack of papers that. Someone signs it's really 526 00:27:31,720 --> 00:27:34,920 important when it goes inside. It's your strongest support 527 00:27:34,920 --> 00:27:38,920 system in your business. And so let's make sure you are 528 00:27:38,920 --> 00:27:42,200 covered in all different ways. All right, that's all I have for 529 00:27:42,200 --> 00:27:43,440 you. This. 530 00:27:43,440 --> 00:27:46,680 Week next week we'll have another great episode and until 531 00:27:46,680 --> 00:27:50,960 then, stay creative. Thanks for listening. 532 00:27:51,160 --> 00:27:53,200 If you love this episode. Please leave a. 533 00:27:53,200 --> 00:27:55,360 Rating and a review. This helps me reach. 534 00:27:55,440 --> 00:27:59,320 Other curious creatives like you if you have a topic request. 535 00:27:59,320 --> 00:28:01,920 Or would like to contact me? Simply head over. 536 00:28:01,920 --> 00:28:05,920 To my website rawarddesign.com. Or e-mail me. 537 00:28:06,240 --> 00:28:09,080 At podcast at R Award. Design.com.