Did you know that offering interior design services without an interior design contract can cost you a lot of time and money?
Landing your first (or next) design client is an amazing feeling, but it can ruin your business if you aren’t legally protected.
An interior design contract agreement protects you and your clients from unfortunate issues that can arise when you work on someone else’s house or design project.
Whether it’s non-payment on their end, problems with a general contractor, missed deadlines, or something else, one lawsuit can ruin everything you’ve worked hard for.
But there’s no need to worry because I have the solution to your problem – an easy-to-customize and use interior design agreement that prevents legal problems from the start.
In this post, I explain why you must use an interior design legal contract, what it should include, and when you need to use one.
Not only that but as a business lawyer, I have put together a complete legal bundle just for interior designers (e-sign or in-person designers) here.
This legal bundle will give you ultimate peace of mind when it comes to protecting your interior design business.
Table of Contents
What is an Interior Design Contract?
An interior design contract is a legal document that protects you and your business from lawsuits and legal issues.
Various issues can arise when you work on design projects for clients, including eDesigns.
For example, you could easily be liable to your client for design flaws.
A well-drafted contract template outlines the entire agreement including things such as design fees, services provided, design specifications, and more.
Like any other service provider and small business owner, having a legally binding document and detailed agreement is a smart idea.
Something as small as a simple mixup in design or owner of intellectual property can turn a great working relationship into a disaster.
Using interior design agreements solves almost any legal issue because they lay everything out in writing and describe expectations on both sides.
Different Names for an Interior Design Contract
You may have heard about this contract via different names. When it comes to interior design, these contract documents can be referred to as:
- Interior design contract
- Design Service Agreement
- Interior design contract template
- Interior design agreement
- Interior design scope of work contract
- Interior design service agreement template
- Interior decorator agreement
- Interior decorator contract
- Interior decorating contract
- Interior Designer Contract Template
- Sample interior design contract letter of agreement
These are all different ways to refer to the same Interior design contract template in this bundle.
Why You Need an Interior Design Agreement
Whether it’s your first project or your hundredth one, you must use interior design contracts on all your projects.
The one time you don’t will be the one time you may get sued.
I’ve been a lawyer for over a decade, and I’ve seen many clients lose thousands of dollars and more in lawsuits.
Unfortunately, my dad’s business got sued for $90,000 when he worked with someone in business but failed to use a contract.
Not having an interior design contract can lead to misunderstandings and confusion too.
When you use an interior design agreement, you set clear expectations to prevent payment issues.
Your agreement describes payment terms and even what will happen if a client doesn’t pay or pays late.
It’s wise to add a late fee in your contracts.
A legally binding contract can even help minimize out-of-pocket expenses and lay out reimbursable expenses.
It’s always better to be safe than sorry as an interior designer because once someone takes legal action against you, it’s too late.
Trust me, lawsuits and legal disputes drain your time, money, and energy, so using a design contract provides peace of mind that you’re protected.
Who Needs an Interior Design Contract?
Anyone offering interior design services whether for an ongoing client or a one-off project, needs an agreement that protects their interests and those of their clients.
If you are in the design industry in the United States for example or outside, you should use a proper design service agreement with your clients.
Even if you are just getting started or doing interior design work for a friend, an agreement provides clarity and peace of mind as to what the project entails for both sides.
Verbal contracts don’t work in the case of lawsuits because you need the terms of your work in a written contract that your client signs.
Your signature is required as well. Only a signed contract will be accepted for court purposes or other legal proceedings. A verbal agreement will not protect you.
When working with clients, especially on personal projects like home designs, it doesn’t take a lot to strain client relationships.
Things can happen during the design process even if you and your clients have the best intentions.
Using an interior design contract template from the start shows the people you work with that you’re a professional and helps them put their faith in you that you’ll deliver what was agreed upon.
It shows them you are serious about your work as an interior designer and that you care about the outcomes for your clients.
If this is you, you need a good contract that protects all parties involved.
Related Post: Web Design Tips and Web Design Contract Template
What Should an Interior Design Agreement Include?
You may be tempted to use a free interior design contract template to save money, but most free contract templates lack the vital elements that interior designer contract templates need.
If your contract doesn’t include the essential coverage, trust me, without the important legal clauses, you could get sued.
That’s stressful because then you’ll have to hire an uber-expensive law firm or legal professional to represent you.
But don’t worry! I have you covered with my interior design legal bundle here.
Here’s what every good Interior design contract needs to have:
The Services Provided: In this section, you outline the detailed scope of work of your work and services rendered for the client and what both parties agreed upon. This scope of work section helps eliminate scope creep.
Design Specifications: This legal section provides the specifications for the design project, including project completion due dates or end dates, design development, and design phases.
Payment Terms: This part states how and when the interior designer will be paid (retainer services or hourly) so there’s no payment dispute with your client.
Setting the fee structure (per project or hourly fee) is a critical element of any freelance contract and helps outline any outstanding fees as well as additional fees.
Design Disclaimer and Limitation of Liability: This legal clause limits your legal liability as a designer. If you don’t have an LLC yet, learn more about the pros and cons of having an LLC here.
Late Payment Fee Clause: This element ensures you get paid on time by your client.
Cancellations and Refund Policy (Termination Clause): In this section, you clearly outline your cancellation and refund policy for your services to prevent any legal issues involving payments down the road if any unforeseen circumstances occur.
Independent Contractor Status: This clause is essential; it clearly states your status as an independent contractor rather than an employee. It’s also critical for tax and business purposes.
Third-Party Affiliate Disclosures: If your design services include affiliate product recommendations, you need to add some required legal disclosures to your client contract.
Use of Third-Party Contractors and Services: If you work with other parties, such as stagers or contractors, this clause can state that the fee for third-party services is not included in the contract.
You can also add another clause about contractors that says the client understands they are responsible for compensating third parties and paying for insurance coverage if necessary.
Insurance: This section is where you can remind your clients to get an insurance policy that covers any items or related materials for the project that they are shipping or storing.
Intellectual Property Clause: One of the biggest legal issues clients and designers fight over is who owns the intellectual property rights.
Confidentiality Clause: This clause protects your proprietary business information, intellectual property, and any confidential information. I also recommend getting a confidentiality agreement to protect your business.
Portfolio Use & Rights to Display Deliverables: As an interior designer, your portfolio is likely how you will win clients over. Do you want to include the work you did for the client in your business portfolio and promotions? You will be able to do so legally, thanks to this additional legal clause in my template here!
What Items are Non-Refundable: Interior designers often include furnishing and other decor, and certain items, such as custom furniture or other custom purchases, may not be refundable.
Interior Design Legal Bundle (perfect for E-Design or In-Person Designers)
Our Interior Design Legal Bundle includes five legal templates that cover all the items listed and more.
All my legal templates are extremely comprehensive and ensure you’re legally covered and protected, with the most important information included.
You also get lifetime updates to the templates for free! And the best part? You don’t need to spend thousands of dollars hiring a lawyer to put together the design contract for you.
Everything is done for you and you simply fill in the highlighted blanks of the template as shown to start using your contract in the next 15 minutes!
Be sure to subscribe to our YouTube channel for more business and legal tips.
How to Use an Interior Design Contract (Written by a Business Lawyer)
If you’re worried or feeling overwhelmed about even doing design services at this point because you can’t afford to hire an attorney to draw up a legal template for you, you’re in luck!
Our Interior Design Legal Bundle has all the legal coverage you need, and you know you’ll be protected because it’s written by an attorney who understands your needs (me).
With my interior design agreement and 4 other legal templates in the bundle, we’ve made the entire process easy.
Don’t worry that the legalese will confuse you or that creating your legal documents will take hours or days.
Our templates don’t just provide a starting point, you’ll have everything you need that a free interior design contract template doesn’t have.
Watch our customer testimonial below to learn more:
Each template is easy to customize in minutes and comes with thorough instructions and examples to make them easy to customize.
And best of all, they’re just a fraction of what it would cost to hire a lawyer or legal counsel.
Yet you get lawyer-level protection!
We also provide free lifetime updates at no additional cost
So there’s no need to keep up with changes in the laws—we do that for you.
Best of all, you can use the template over and over and customize it for each client you work with.
The interior design services agreement comes in a digital download you get immediate access to.
Plus, you’ll get access to our Facebook support group, where we’ll answer your business and legal questions, and you can network with other small business owners.
If you want to include any local laws or specific needs or want custom-made orders for templates, feel free to book a legal consultation with me.
Don’t waste time with free contracts that are deficient and vague in their coverage.
Get your interior designer legal templates here and save yourself sleepless nights and the hassle of lawsuits and legal issues.
FAQs on Interior Design Agreement Template
Check out the answers to the most common questions about the interior design contract below:
How do I write my interior design contract?
I’m not saying this because I’m a lawyer, but honestly, it’s not easy to put together your own contract.
The reason is that contracts are legal documents that require a thorough understanding of the law and specific language to be valid and enforceable.
Do you even enjoy writing legalese?
Most likely, your answer is no. It’s a specialized skill that requires training and experience, so it’s best left to the experts.
The safest way to create any written contract, including this interior design contract, is to purchase legal templates drafted by an attorney.
As a business lawyer, I create all of our legal templates for business owners, so you have peace of mind knowing you’re legally covered.
What should an interior design contract include?
We covered most of the important legal provisions above but here’s a recap.
Interior design contracts are necessary to protect yourself and your business and should include the following key provisions:
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- Payment schedule and terms
- Services to provide and interior design scope of work (to prevent scope creep) – a statement of work
- Details about the interior design project and scope of the project
- Design specifications
- Late payment fee clause
- Cancellations and refund policy
- Dispute resolution and indemnity clause (indemnity clauses are also important for allocating claims of damage or risks between parties)
- Intellectual property owner details
- Terms of use for publicity and photographs of your work
- Relevant information for both the client and interior designer (your name and business name, your client’s name, and other basic information)
- A clause for outside contractors and consultants
Why do interior designers get sued?
Clients can sue interior designers for a variety of issues such as professional negligence when they make a mistake that affects their client’s finances.
Things your interior design business can get sued for include but are not limited to:
-
-
- Asking your client to pay more than they agreed upon
- Using unapproved job materials
- Missing agreed-upon deadlines or not completing jobs in a timely manner
- Not keeping clients up to date on changes
- Making a mistake measuring materials that costs time and money
- Providing bad advice
- Theft or damage to property
- On-the-job injuries
- Breaching confidentiality agreements
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and more!
Resources for interior designers
As an interior designer, it’s important to have a solid understanding of the legal aspects of your business.
Here are some resources that can help:
- Contracts for Creatives – This guide offers customizable contract templates specifically designed for creative professionals.
- Legal tips – this page offers legal tips on a variety of legal topics from memberships to LLCs to running a giveaway and more!
- Lawyer Services – This is where you can work with a lawyer 1:1 specializing in contracts or small businesses.
Final Thoughts on Interior Design Contract
There’s nothing more exciting than interior designing homes and properties for clients.
But when you work on a client’s house, anything can go wrong, from shoddy contractor work to the client refusing to pay or even theft or damage to the property.
That’s why having an interior design contract and other essential legal documents is so critical to ensure you protect your rights as well as your clients.
I have been working as a lawyer for a long time so I have seen plenty of legal issues unfortunately.
That’s why I created our easy-to-use legal templates in the Interior Design Contract Bundle to make protecting your business simple and quick.
Rather than losing sleep worrying over client issues, get affordable legal templates for your interior design business.
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