Residential Interior Design Service Agreement

This Packet Includes:
1. General Information & Checklist;

2. Information;

3. Step-by-Step Instructions; and

4. The Residential Interior Design Service Agreement (the “Agreement”)

General Instructions & Checklist

Residential Interior Design Service Agreement

 Both the client and contractor must sign the Agreement. Because both parties will want to retain an original, two originals should be signed.

 The Agreement should be signed at the beginning of the term of service.

 This form should not be used if the contractor is considered an employee of the client.

 If you like, you can erase the italicized statements on the Agreement. These are just instructions to help you complete it.

 These forms are not intended to be and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed before first consulting with an attorney to ensure that they address your particular situation. An attorney should be consulted before negotiating any document with another party.

 The purchase and use of these forms is subject to the “Disclaimers and Terms of Use” found at findlegalforms.com.

Information

Residential Interior Design Service Agreement

A Residential Interior Design Service Agreement is an agreement between a contractor (or interior designer) and a client for design services related to a residential property (as opposed to a commercial property). A service agreement is helpful because it provides the terms and conditions of the arrangement. What specific services will the interior designer provide? How will the furnishings and fixtures be purchased? How and when will client approvals be given? Who will manage any third party contractors or installers? How and when will the interior designer be paid? These are all questions that will be answered in the service agreement. In addition, the service agreement will reaffirm that an employer/employee relationship is not created.

An important preliminary step to a Residential Interior Design Service Agreement is an initial face-to-face meeting between the interior designer and client. At this meeting, the parties discuss the project, client's design preferences and functional requirements, and budget. The points discussed at this meeting will inform the terms of the Residential Interior Design Service Agreement, and some designers require a deposit before embarking on the next phase of the project.

Some projects require the engagement of third party contractors and installers to complete certain technical work, such as electrical and plumbing. While some interior designers frequently collaborate with architects and engineers, this agreement does not contemplate structural work, and as such is not to be used for architectural or engineering purposes.

Employment relationships are governed by both federal and state law. Many of the state laws differ dramatically, therefore the client and the contractor should become familiar with the laws of their specific state and the federal government before entering into this type of arrangement. In addition, before using the form you should always consult with your attorney to ensure that it addresses you specific situation.

Step-by-Step Instructions

Residential Interior Design Service Agreement

The following instructions will walk you through each provision to help you fully understand the terms of your Agreement. The numbers below correspond with the respective provision within the Agreement.

Heading: Fill in the date that the Agreement is being entered into, and the name of each party (Contractor, and the name of Client).

Section 1: Project. Provide the name, title, and/or address of the Project, and indicate what residential spaces are included.

Section 2: Services. This is the "meat" of the Agreement, as it sets forth a detailed description of the services to be provided.

Subsection (a): Design Concept. After the initial face-to-face meeting, Contractor will formulate a design plan or plans (often with use of computer-aided design or "CAD" software). The parties should specify whether the schematics will include such items as lighting, cabinets, and the like. Also, Contractor will usually provide visual references and samples at this point to aid Client in making decisions about furniture and furnishings, fabric, color palettes, interior finishes, wall coverings, floor coverings, etc.

Subsection (b): Design Specifications. When the design concept is finalized, the parties then specify in detail the furniture, furnishings, materials and finishes required, and whether any items will be custom designed.

Subsection (c): Purchasing. In this phase, Contractor will generally issue purchase orders for the required items. This subsection specifies the information that such purchase orders shall include, whether any deposit will be due prior to purchasing, and whether custom merchandise will be refundable.

Subsection (d): Third Party Contractors and Installers. Some designs will require the hiring of contractors to do technical work such as lighting, plumbing, and electrical wiring. Here the parties specify the type of technical work needed, the budget, how changes to the budget will be handled, how the third party contractors and installers will be engaged, and the project management services provided by Contractor.

Section 3: Time of Completion and Approvals. Here, the parties set a timeline for approval and completion of each phase of the project.

Section 4: Services Estimate and Additional Services. Here, the parties set an estimate for the design services (based upon total number of designer hours or a fixed fee), as well as a procedure for how additional services will be handled.

Section 5: Payment. Specify how Contractor will be paid for services rendered.

Subsection (a): Fee. Specify whether a retainer is required, and whether Contractor will be paid by the hour, or a fixed fee.

Subsection (b): Manner of Payment. Specify when the payments will be made, and whether the payments will be in the form of cash, check or credit card.

Section 6: Reimbursable Expenses. Set forth all of the expenses for which Contractor will be reimbursed.

Section 7: Project Account Records. This is an optional provision, but it is a good idea to specify that Contractor shall be responsible for keeping project account records in the event that Client wishes to review or audit such records should a disagreement arise.

Section 8: Ownership of Project Documents. This is another optional, but recommended, provision. This provision specifies that the project documents are Contractor's property, to be used only in connection with the Project except where Contractor's consent has been given otherwise.

Section 9: Right to Photograph. Contractor will likely wish to photograph the completed Project for portfolio and business purposes, and this provision makes clear that Contractor shall have the right to do this without disclosing the Project location or Client's personal information, unless Client's consent is given otherwise.

Section 10: Arbitration. It is a good idea to specify how disputes will be resolved, and this optional Arbitration provision does just that.

Section 11: Attorneys' Fees and Costs. Should the parties not opt to include the above Arbitration provision, they may wish to clarify who will pay attorneys' fees and costs should litigation in a court of law arise. This optional subsection states that if one party breaches the Agreement, and the non-breaching party seeks enforcement of the Agreement in a court or other forum, the party who breached the Agreement shall pay all reasonable attorneys' fees and costs incurred by the non-breaching party.

Section 12: Limitation on Liability. In this optional provision, Client assumes liability for any injury to person or damage to property which results directly or indirectly from the Contractor's performance.

Section 13: Term. Fill in the service start date. This provision explains that the Agreement is terminable at will by either party upon written notice.

Section 14: Cancellation. Here, the parties may specify the amount of written notice required to cancel the Agreement, where the other party fails to substantially perform with the terms of the Agreement. Also, the parties may specify any balances owed where Contractor cancels without fault.

Section 15: Notice. Fill in the mailing address of each party to be used for written notice.

Section 16: General Provisions.

Subsection (a): This subsection states that the services shall be performed in a good and workmanlike manner, and shall comply with all building codes and other applicable laws. Generally, workmanlike manner means doing the work in an ordinary skilled manner as a skilled workman would perform the work.

Subsection (b): This subsection states that Contractor and his/her/its employees or agents are licensed and therefore authorized to perform the band services.

Subsection (c): In this subsection, Contractor warrants that he/she/it carries insurance to cover injuries to himself/herself/itself, his/her/its employees, and others who are injured or who suffer loss as a result of Contractor's or his/her/its employees' acts.

Subsection (d): This subsection states that in the event Client fails to make any payments, Contractor can cease performance of the services without breaching the Agreement, pending payment or a resolution of the dispute.

Subsection (e): This subsection states that Contractor shall not be liable for any delay or nonperformance of the services, so long as the delay or nonperformance is not due to circumstances within his/her/its control.

Subsection (f): This subsection reaffirms that Contractor is an independent contractor. This is an important distinction for the purposes of tax status, insurance and liability. During the employment relationship both parties should be careful to keep this distinction clear. It is recommended that the parties review the rules set forth by the IRS on this subject and also any state laws that may apply.

Subsection (g): If either party chooses to modify this Agreement in any way, this subsection states that the modification must be put in writing and signed by both parties.

Subsection (h): This subsection specifies the state whose laws shall be used to interpret the Agreement. Generally, this will be the state where the interior design services are being performed.

Subsection (i): This subsection states that neither Client nor Contractor may assign any rights or duties under the Agreement to a third party, without the consent of the non-assigning party.

Subsection (j): This subsection states that the headings used to describe each provision are not to be used in any determination as to the meaning of the provision itself. Rather, the headings are for the parties' convenience only.

Subsection (k): This subsection specifies that the Agreement is considered the complete agreement between the parties. Any prior agreements are invalid.

Subsection (l): This subsection states that if one or more provisions of the Agreement is deemed unenforceable (e.g., by a court), that provision is severable from the rest of the Agreement, which shall remain binding and enforceable on the parties.

Signature Block. Each party should sign and date two original Agreements. Each party should retain an original for their reference.

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