Interior Design Contract Template

What Is an Interior Design Contract?

An interior design contract is a legally binding agreement between an interior designer (or design firm) and a client that establishes the terms for planning, designing, and implementing interior spaces. The contract governs the entire project lifecycle: from initial consultation and concept development through detailed design, material selection, procurement, contractor coordination, and final installation.

Interior design projects vary enormously in scope and complexity. A residential project might involve redesigning a single room with new furniture, paint, and accessories. A comprehensive home renovation might include space planning, custom millwork, material specification, lighting design, and full project management. A commercial project might encompass an entire office floor with workstations, conference rooms, break areas, and branded elements. A hospitality project might include restaurant interiors, hotel lobbies, and guest rooms requiring custom fixtures and FF&E (furniture, fixtures, and equipment) procurement.

Regardless of the project type, the contract must address two fundamental dimensions of interior design work. The first is the design service itself: the creative and technical expertise the designer brings in developing concepts, selecting materials, creating drawings, and specifying products. The second is the procurement and project management service: the practical work of sourcing products, managing vendor relationships, coordinating deliveries, and overseeing installation.

The compensation structure for interior design projects can be complex. Designers may charge a flat design fee, an hourly rate, a percentage of the total project cost, a cost-plus markup on furnishings and materials, or a combination of these methods. The contract must clearly explain how the designer is compensated and what the client can expect to pay at each phase of the project.

For both designers and clients, the contract sets the foundation for a successful collaboration. It manages expectations, prevents misunderstandings about money and scope, and provides a structured framework for navigating the inevitable decisions and changes that arise during any design project.

Why You Need an Interior Design Contract

Interior design projects involve significant financial investment, deeply personal aesthetic preferences, and complex logistical coordination. A contract addresses the risks inherent in each of these areas.

Scope creep is pervasive in interior design. What begins as a living room redesign can gradually expand to include the dining room, the entryway, custom window treatments, and bathroom fixtures. Without a contract defining the specific rooms and services included, the designer may find themselves doing substantially more work than they were compensated for, or the client may be surprised by additional charges.

Budget management is critical because interior design involves purchasing physical products, often with significant lead times and non-refundable deposits. The contract should define the overall project budget, how product purchases are handled, who is responsible for vendor deposits, and what happens if a product is damaged, delayed, or discontinued.

Design approval processes prevent costly misunderstandings. Interior design involves subjective aesthetic judgments, and what a client imagines from a concept board may differ from the finished result. The contract should establish clear approval milestones where the client reviews and signs off on design decisions before purchases are made and work begins.

Procurement and vendor management introduce financial complexity. When a designer purchases furniture and materials on behalf of a client, questions arise about markups, vendor relationships, and the flow of money. The contract must transparently address the designer's markup percentage, how vendor relationships work, and the client's financial obligations for product purchases.

Liability for construction and installation work must be allocated. If contractors damage existing structures, if furniture arrives damaged, or if an installation does not match the design intent, the contract should define who bears responsibility and how remediation is handled.

Key Components of an Interior Design Contract

• Parties: Legal names and contact information for the designer and the client.
• Project Description: The spaces to be designed, the property address, and the overall design objectives.
• Scope of Services: The specific design services to be provided, organized by project phase.
• Design Phases: Concept development, schematic design, design development, documentation, procurement, and installation oversight.
• Client Approvals: Milestones at which the client must review and approve design decisions before the project advances.
• Compensation Structure: The designer's fee structure (flat fee, hourly, percentage, cost-plus, or hybrid).
• Product Procurement: How furnishings, materials, and fixtures are sourced, purchased, and delivered, including markup or commission structures.
• Budget: The estimated project budget for both design fees and product purchases, with provisions for budget management.
• Payment Schedule: Retainer, milestone payments, product deposits, and final payment.
• Timeline: Estimated project phases with target dates and dependencies.
• Revisions: The number of design concept revisions included and the cost of additional revisions.
• Contractor Coordination: The designer's role in coordinating with contractors, builders, and tradespeople.
• Intellectual Property: Ownership of design concepts, drawings, and specifications.
• Confidentiality: Protection of the client's personal information and property details.
• Liability: Limitations on financial exposure, particularly regarding product quality and contractor work.
• Termination: Conditions for ending the engagement and financial settlement upon termination.
• Governing Law: Applicable jurisdiction and dispute resolution mechanism.

How to Write an Interior Design Contract

1. Define the project scope clearly. List every room or space included in the project, the design objectives for each, and any specific requirements or constraints (e.g., ADA compliance, historic preservation guidelines, landlord restrictions).

2. Organize services by phase. Break the project into phases: programming/consultation, concept development, schematic design, design development, construction documentation, procurement, and installation oversight. Define what is included in each phase.

3. Establish the approval process. Define milestones where the client must review and approve design presentations, material selections, and purchase decisions before the project advances. Client approval at each phase authorizes the designer to proceed.

4. Set the compensation structure. Choose the fee model that fits the project. Explain it clearly so the client understands exactly what they are paying for design services versus product purchases.

5. Address product procurement transparently. Define the markup percentage or commission on products purchased through the designer. Specify how vendor deposits are handled, how delivery is coordinated, and who bears the risk of damage or defects.

6. Create the payment schedule. Tie payments to project phases or milestones. Include a retainer to begin work and progress payments aligned with major project milestones.

7. Include revision provisions. Define the number of design concepts or revision rounds included at each phase. Creative exploration is valuable, but unlimited revisions create open-ended obligations.

8. Clarify the designer's role with contractors. Specify whether the designer provides advisory oversight, full project management, or limited review of contractor work. Define who hires and pays contractors directly.

9. Address IP and design document ownership. Design concepts, drawings, and specifications represent significant creative value. The contract should specify who owns these documents.

10. Execute the contract before beginning any design work.

Free Interior Design Contract Template

INTERIOR DESIGN SERVICES AGREEMENT

This Interior Design Services Agreement ("Agreement") is entered into as of [Effective Date] by and between:

Designer: [Designer/Firm Legal Name], with principal place of business at [Address] ("Designer")

Client: [Client Legal Name], with address at [Address] ("Client")

Collectively referred to as the "Parties."

1. PROJECT DESCRIPTION

1.1 The Designer shall provide interior design services for the following property and spaces:

(a) Property Address: [Address];

(b) Spaces Included: [living room, dining room, master bedroom, kitchen, office, commercial lobby, etc. — list all spaces];

(c) Project Objectives: [modernize the interior, create a cohesive residential aesthetic, design a functional commercial workspace, etc.].

1.2 Spaces and areas not listed above are excluded from this Agreement and may be added by written amendment at additional cost.

2. SCOPE OF SERVICES

2.1 The Designer shall provide the following services, organized by project phase:

Phase 1 — Programming and Consultation
(a) Initial on-site meeting to assess the space, discuss the Client's vision, lifestyle needs, and aesthetic preferences;
(b) Documentation of existing conditions including measurements, photography, and assessment of existing furnishings to be retained or replaced;
(c) Establishment of the project budget range and timeline.

Phase 2 — Concept Development
(a) Development of [2-3] design concepts including mood boards, color palettes, and preliminary layout options;
(b) Presentation of concepts to the Client for review and selection.

Phase 3 — Schematic Design
(a) Development of the selected concept into a detailed space plan with furniture layouts;
(b) Preliminary material, finish, and fixture selections;
(c) Presentation for Client approval.

Phase 4 — Design Development
(a) Detailed specification of all materials, finishes, furnishings, fixtures, lighting, window treatments, and accessories;
(b) Custom millwork or built-in design (if applicable);
(c) Detailed cost estimates for all specified products and materials;
(d) Presentation of final selections for Client approval.

Phase 5 — Procurement
(a) Ordering of all approved furnishings, materials, and fixtures from vendors and manufacturers;
(b) Management of vendor communications, order confirmations, and delivery coordination;
(c) Tracking of all orders through delivery and receipt;
(d) Inspection of received items for quality and accuracy.

Phase 6 — Installation and Styling
(a) Coordination of delivery and installation schedules;
(b) On-site oversight during key installation days;
(c) Final styling, accessorizing, and arrangement of all elements;
(d) Project walkthrough with the Client.

2.2 Services not listed above are excluded and may be added by written amendment.

3. CLIENT APPROVALS

3.1 The Client shall review and provide written approval at the following milestones before the Designer proceeds to the next phase:

(a) Concept selection (end of Phase 2);

(b) Space plan and preliminary selections (end of Phase 3);

(c) Final material and furnishing selections and cost estimates (end of Phase 4);

(d) Procurement authorization (beginning of Phase 5).

3.2 The Client shall provide feedback or approval within [10] business days of each presentation. Delays in Client approval shall extend the project timeline proportionally.

3.3 Once the Client approves a phase, changes that require reworking approved elements shall be treated as revisions subject to Section 8.

4. COMPENSATION

4.1 The Designer shall be compensated as follows:

Option A — Flat Design Fee:
Design services fee: $[Amount] covering all phases described in Section 2. Product procurement is billed separately under Section 5.

Option B — Hourly Rate:
Design services billed at $[Rate] per hour. Estimated total hours: [Number]. Monthly invoices with time tracking provided.

Option C — Percentage of Project Cost:
Design fee equal to [percentage]% of the total project cost (design services, products, and installation combined). Estimated total project cost: $[Amount].

Option D — Cost-Plus:
Products and materials purchased at net (trade) price plus a [percentage]% markup. Design consultation services billed at $[Rate] per hour.

4.2 [Select applicable option and delete others, or use a hybrid as agreed.]

5. PRODUCT PROCUREMENT AND PURCHASING

5.1 Products, furnishings, materials, and fixtures shall be purchased through the Designer at [trade price plus [percentage]% markup / retail price less [percentage]% / other pricing structure].

5.2 The Client shall pay a deposit of [50]% of the product cost at the time each order is placed. The remaining balance is due upon delivery.

5.3 Product deposits paid to vendors are generally non-refundable. The Client acknowledges this risk and authorizes the Designer to place orders only after receiving Client approval under Section 3.

5.4 The Designer shall provide itemized proposals showing the cost of each item before placing orders. The Client must approve proposals in writing.

5.5 Lead times for custom and imported items may range from [4] to [16] weeks. The Designer shall communicate expected lead times but is not responsible for manufacturer or shipping delays beyond the Designer's control.

5.6 The Client is responsible for all product costs, shipping fees, and applicable taxes.

6. BUDGET

6.1 The estimated total project budget is:

(a) Design fees: $[Amount];

(b) Product and material purchases: $[Amount];

(c) Contractor and installation costs (if applicable): $[Amount];

(d) Contingency ([10]%): $[Amount];

(e) Total estimated budget: $[Amount].

6.2 The Designer shall use commercially reasonable efforts to work within the approved budget. If project decisions or Client requests would exceed the budget, the Designer shall notify the Client before proceeding.

6.3 The Designer is not a guarantor of vendor prices, which may fluctuate.

7. PAYMENT SCHEDULE

7.1 Payments shall be structured as follows:

(a) Retainer of $[Amount] due upon execution of this Agreement;

(b) Phase 2 completion: $[Amount];

(c) Phase 4 completion (design development approval): $[Amount];

(d) Product procurement deposits: as specified in Section 5.2;

(e) Final payment: $[Amount] due upon completion of installation and styling.

7.2 The Designer shall not proceed past the current phase until the corresponding payment is received.

7.3 Payments are due within [15] business days of invoicing.

7.4 Late payments shall accrue interest at [1.5]% per month and may result in project suspension.

8. DESIGN REVISIONS

8.1 The design fee includes:

(a) Phase 2: Up to [3] concept options;

(b) Phase 3: [1] round of space plan revisions;

(c) Phase 4: [1] round of material selection revisions.

8.2 Additional revision rounds shall be billed at $[Rate] per hour.

8.3 Changes to previously approved design elements that require rework of completed phases shall be treated as additional revisions and billed accordingly.

9. CONTRACTOR COORDINATION

9.1 The Designer's role with respect to contractors and tradespeople is [advisory / project management / limited review]:

(a) Advisory: The Designer provides design direction and reviews contractor proposals but does not manage the contractor relationship directly. The Client contracts with and pays contractors independently.

(b) Project Management: The Designer manages contractor selection, scheduling, and on-site supervision. [Additional fees may apply: $[Rate] per hour for on-site supervision.]

(c) Limited Review: The Designer reviews key installation milestones to ensure alignment with design specifications.

9.2 The Designer is not a licensed contractor and does not warrant or guarantee contractor work. The Client maintains a direct contractual relationship with all contractors.

10. INTELLECTUAL PROPERTY

10.1 The Designer retains ownership of all design concepts, drawings, renderings, specifications, and documentation ("Design Documents") created under this Agreement.

10.2 Upon full payment, the Client is granted a license to use the Design Documents for the implementation of the Project at the specified property.

10.3 The Client shall not reproduce, distribute, or use the Design Documents for other properties or projects without the Designer's prior written consent.

10.4 The Designer may use photographs and descriptions of the completed project in their portfolio, website, publications, and marketing materials.

11. CONFIDENTIALITY

11.1 The Designer shall maintain the confidentiality of the Client's personal information, property details, financial information, and any private matters observed during the project.

11.2 The Client shall not disclose the Designer's proprietary vendor relationships, trade pricing, or business methodologies.

11.3 This obligation survives termination for [2] years.

12. LIABILITY LIMITATION

12.1 The Designer's total liability under this Agreement shall not exceed the total design fees paid by the Client (excluding product costs).

12.2 The Designer shall not be liable for product defects, manufacturer errors, shipping damage, or contractor workmanship issues, though the Designer shall assist the Client in resolving such issues with vendors and contractors.

12.3 Neither Party shall be liable for indirect, consequential, or incidental damages.

13. INDEMNIFICATION

13.1 The Client shall indemnify the Designer against claims arising from the Client's property conditions, contractor work, or use of the space.

13.2 The Designer shall indemnify the Client against claims arising from the Designer's negligence or willful misconduct in performing the Services.

14. TERMINATION

14.1 Either Party may terminate this Agreement for convenience by providing [30] days' written notice.

14.2 Either Party may terminate immediately if the other Party materially breaches this Agreement and fails to cure within [15] days of written notice.

14.3 Upon termination: (a) the Client shall pay for all design services rendered and approved through the termination date; (b) the Client shall honor all product purchase commitments already placed with vendors; (c) the Designer shall deliver all Design Documents for work completed to date; (d) non-refundable vendor deposits remain the Client's responsibility.

15. FORCE MAJEURE

15.1 Neither Party shall be liable for delays caused by circumstances beyond their reasonable control, including natural disasters, pandemics, supply chain disruptions, or government orders.

15.2 The affected Party shall notify the other promptly and the Parties shall adjust the timeline accordingly.

16. GOVERNING LAW AND DISPUTE RESOLUTION

16.1 This Agreement shall be governed by the laws of the State of [State].

16.2 Disputes shall first be submitted to mediation. If unresolved within [30] days, disputes shall be resolved by binding arbitration in [City, State].

17. GENERAL PROVISIONS

17.1 This Agreement constitutes the entire agreement between the Parties.

17.2 Amendments require written agreement by both Parties.

17.3 Unenforceable provisions do not affect the remainder.

17.4 Assignment requires prior written consent.

17.5 Notices shall be in writing to the addresses stated above.

IN WITNESS WHEREOF, the Parties execute this Agreement as of the Effective Date.

DESIGNER:

Signature: ___________________________

Name: [Designer Name]

Firm: [Firm Name]

Date: ___________________________

CLIENT:

Signature: ___________________________

Name: [Client Name]

Date: ___________________________

How to Use This Template

1. Download the template and review it completely. Identify which compensation model and contractor coordination role applies to your practice.

2. Define the project scope by listing every room or space included. Be thorough to prevent scope creep and set clear boundaries.

3. Select the compensation structure that fits your business model and the project type. Flat fees work well for defined scopes. Hourly rates suit projects with uncertain scope. Cost-plus is common for procurement-heavy projects.

4. Customize the project phases to match your design process. Not every project requires all six phases. Smaller projects may combine phases.

5. Set a realistic budget with the client, including a contingency of at least 10% for unexpected costs and price changes.

6. Define the procurement process clearly so the client understands how products are purchased, what markups apply, and that vendor deposits are typically non-refundable.

7. Establish the client approval process to prevent disputes over design decisions. Signed approvals at each phase protect both parties.

8. Execute the agreement and collect the retainer before scheduling the initial consultation or beginning any design work.