How to Manage Client Expectations with Contracts

May 12

For interior designers, managing client expectations is not just about delivering great designs; it's about ensuring a smooth and clear workflow from concept to completion.

A well-crafted contract is one of the most effective tools you can use to set expectations, define boundaries, and protect both your interests and those of your clients.

Here are some key ways you can use contracts to manage client expectations effectively:

1. Clarify Scope of Work

The “scope of work” section is perhaps the most critical part of any interior design contract. It should clearly outline what services will be provided, the extent of those services, and equally important, what is not included. This clarity helps prevent scope creep and sees to it that both parties are on the same page about what will be delivered.

2. Detail Payment Terms

Financial misunderstandings can sour relationships and disrupt projects. Clearly outline your payment terms, including rates, deposits, final balances, and payment deadlines. Be explicit about additional charges that may apply, such as for services outside the agreed scope or for revisions beyond the number included in the contract.

Additionally, there’s a trend moving in the direction of more disclosure. For ethical and legal reasons (based on your state), disclosure of discounts you may receive from vendors for recommending their products may need to be disclosed.

3. Establish Timelines

Timelines help manage clients' expectations on project duration and key milestones. Include a realistic timeline for the project, detailing each phase, approvals needed, and deadlines. Remember to account for potential delays, which are common in design projects, and specify how they will be communicated and handled.

Pro Tip: Include language in your contract that timelines are for “reference only” and are subject to change due to delays outside the designer’s control.

4. Include Revision and Approval Processes

To avoid endless revisions, your contract should specify how many rounds of revisions are included and what happens if the client exceeds this number (e.g., state the fee for additional revisions). Clearly outline the approval process for designs, samples, and final installations to ensure there are clear checkpoints throughout the project.

Pro Tip: Include in your deliverables package a location for the client’s sign-off. This will ensure your team has clear authority to move forward.

5. Address Procurement and Supply Issues

Interior design often involves the procurement of materials and furnishings. Specify how procurement is handled, who is responsible for purchasing, and what happens if items are delayed or no longer available.

This section should also cover any mark-ups on goods purchased on behalf of the client, and include appropriate disclaimers for merchant warranties and claims.

6. Discuss Communication Protocols

Good communication is key to any project's success. Your contract should specify how communication will be handled, including the frequency of updates, preferred methods (e.g., email, phone, in-person), and who the primary contacts are on both sides. Always be sure to identify the key contact person for each party.

Pro Tip: Make sure all key decisions are agreed to in writing by the designated contact persons.

7. Include a Cancellation and Termination Clause

Sometimes, projects do not go as planned, or circumstances change. A cancellation clause is critical for handling such situations. It should outline the terms under which either party can terminate the contract, notice periods, and any financial compensation owed if the project ends early.

8. Use Simple Language

While it's important that your contract is legally sound, it should also be easily understandable. Avoid legal jargon where possible. Clear, straightforward language will help ensure that your client understands their obligations and the terms of the agreement, reducing potential conflicts.

Conclusion

Contracts are not just formalities; they are foundational tools for managing client relationships and expectations in interior design. By clearly defining the scope, terms, and processes of your projects, you can create a structured and transparent environment that leads to successful project outcomes and satisfied clients.

For interior designers looking to simplify the process, the ID Law Shop offers a range of specialized contract templates tailored to various needs within the industry. These templates provide a solid starting point, and will help make sure you cover all necessary aspects of a professional engagement while saving time and legal expenses.

Erica Canas

Erica is the founder and owner of the ID Law Shop, a specialized resource for interior designers to protect their businesses and simplify their legal processes. As an attorney, she understand the importance of having legal protections in place when running an interior design business and has leveraged her expertise to develop customizable legal templates, including client contracts, personnel agreements, intellectual property protection agreements and more, all tailored specifically to the needs of interior designers.

Prior to launching the ID Law Shop, Erica worked as an intellectual property, transactional and marketing law attorney. In her 16+ year practice, she has counseled architects, interior designers, landscape architects, individuals, marketing agencies, and related businesses on a wide range of legal issues including copyright, trademark, licensing, content protection, brand protection, service agreement drafting and negotiation, employee matters, freelancer contracts, social media issues, advertising compliance, and direct marketing regulations.

Erica's background also involves commercial litigation in both federal and state court matters where she successfully represented clients in a wide array of other industries, including commercial development, entertainment and the visual artists.

Erica earned her J.D. degree from Florida International University College of Law, where she was a member of the Board of Advocates and served as the President of the Human Rights and Environmental Law Society. She earned her B.A., cum laude, in International Relations with a minor in Psychology from Florida International University.

https://www.linkedin.com/in/ericacanas/