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Interior Design Letter Of Agreement
1. Service Phase Definitions and Deliverables
Service Phase Definitions and Deliverables. The Services to be performed by ("Architect") for ("Owner") for the Project described in the Scope are organized into the following phases:
(a) Schematic Design Phase. Architect shall prepare schematic design documents consisting of drawings and other documents illustrating the scale and general design concept for Owner's approval. Deliverables: . Owner approval of the Schematic Design is required before proceeding to Design Development.
(b) Design Development Phase. Architect shall prepare design development documents to fix and describe the size and character of the Project as to architectural, structural, mechanical and electrical systems, materials, and such other elements as may be appropriate. Deliverables: . Owner approval of the Design Development Documents is required before proceeding to Construction Documents.
(c) Construction Documents Phase. Architect shall prepare construction documents for Owner's approval. These documents shall set forth in detail the requirements for construction of the Project. Deliverables: .
(d) Bidding or Negotiation Phase. Architect shall assist Owner in obtaining bids or negotiated proposals and assist in awarding and preparing construction contracts. Services include: .
(e) Construction Administration Phase. Architect shall provide administration of the construction contract as set forth below and in Construction Administration services provisions herein. Services include: .
Completion of each phase is contingent upon Owner's timely decisions and approvals and Owner's fulfillment of Owner's responsibilities. If Owner requests or requires changes after approval of a phase, such changes constitute Additional Services.
2. Compensation Structure
COMPENSATION STRUCTURE
shall compensate for services rendered under this Agreement as follows:
(a) Basic Services:
(b) Additional Services: Services not included in the Scope of Basic Services and performed at 's written request shall be compensated on an hourly basis at the rates set forth in Exhibit , or as otherwise agreed in writing by the parties.
(c) Initial Retainer: Prior to commencing Services, shall pay an initial retainer in the amount of (the "Retainer"). The Retainer shall be applied to the first invoice and shall not bear interest. The Retainer is not a limitation on 's total compensation obligation under this Agreement.
(d) Independence from Construction Cost: This compensation is independent of the cost of construction and constitutes payment for professional services rendered, not for any particular project outcome. Compensation shall not be contingent upon construction cost savings or any other project result.
3. Payment Terms and Invoice Requirements
PAYMENT TERMS
(a) Invoice Submission. shall submit invoices for services rendered and reimbursable expenses incurred under this Agreement . Each invoice shall include:
(i) A description of services performed during the billing period, identified by project phase or task;
(ii) For time-based compensation, an itemization of hours by personnel classification and the applicable hourly rate;
(iii) For phase-based or percentage-based compensation, the percentage of the phase or overall services completed and the amount due based on such percentage completion;
(iv) A summary of reimbursable expenses with supporting documentation as reasonably requested by ; and
(v) Total amount due and cumulative amount invoiced to date.
(b) Payment Due Date. Payment is due within 30 days of 's receipt of each invoice.
(c) Late Payment Interest. Invoices not paid within 30 days shall bear interest at 1.5% per month (or the maximum rate permitted by law, whichever is less) from the due date until paid.
(d) Right to Withhold Deliverables. If fails to pay any undisputed invoice within 10 days after written notice of non-payment, may, without penalty or liability for delay, suspend performance of Services and withhold delivery of documents until all outstanding invoices are paid in full. shall not withhold documents if such withholding would endanger public safety or violate 's professional obligations. Resumption of Services after suspension may require equitable adjustment of the schedule and fee.
4. Standard of Care (Professional Skill, Not Warranty)
STANDARD OF CARE
(a) Professional Standard. shall perform all Services under this Agreement with the professional skill and care ordinarily provided by competent practicing under similar conditions at the same time and in the same or similar locality. This standard of care establishes a professional liability standard based on reasonable care and skill, not a warranty of fitness for a particular purpose or guarantee of a specific result.
(b) No Warranty of Results. makes no warranty, express or implied, that:
(i) The design, when constructed, will be free from defects or errors;
(ii) Construction costs will not exceed any estimate or budget provided;
(iii) The project will be completed within any projected timeline; or
(iv) The design will achieve any particular aesthetic, functional, or financial result.
(c) No Fitness-for-Purpose Warranty. makes no warranty, express or implied, that the design will be suitable or fit for any particular purpose other than those expressly stated in the written project program or design criteria provided by . acknowledges that the standard of care described in Section (a) is the sole measure of 's obligations and that no reliance on 's professional judgment shall create any implied warranty of fitness for purpose beyond the exercise of reasonable professional skill and care.
5. Code Compliance and Authority Having Jurisdiction
CODE COMPLIANCE AND AUTHORITY HAVING JURISDICTION
(a) Design for Compliance. shall prepare design documents intended to comply with applicable building codes, zoning ordinances, and other governmental regulations in effect at the time Services are performed and applicable to the Project as reasonably interprets such requirements.
(b) Code Changes During Construction. designs to applicable codes in effect at the time of design document preparation. Building codes, zoning ordinances, and other regulations may change between the completion of design documents and the completion of construction. The contractor is responsible for identifying and complying with any code changes, amendments, or new regulations occurring after issuance of construction documents. is not responsible for redesigning the project to comply with code changes that occur after construction documents are issued unless requests such revisions as Additional Services.
(c) AHJ Exclusive Authority. Final determination of code compliance and interpretation of applicable regulations is the exclusive authority of the governmental authority having jurisdiction ("AHJ"), including building officials, zoning administrators, fire marshals, and other regulatory officials. 's interpretation of codes and regulations does not bind the AHJ, and the AHJ may require modifications to the design even if reasonably believed the design complied with applicable requirements.
INTELLECTUAL PROPERTY OWNERSHIP
(a) Background IP. Each party retains all right, title, and interest in its Background IP. "Background IP" means all intellectual property owned or licensed by a party prior to the Effective Date or developed independently of this Agreement. Each party grants the other a limited, non-exclusive, royalty-free license to use its Background IP solely to the extent necessary to perform or receive the Services during the term of this Agreement.
(b) Deliverables — Work-for-Hire Designation. To the extent that any Deliverable constitutes a "work made for hire" as defined in 17 U.S.C. § 101 (including as a contribution to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a compilation, as an instructional text, as a test, as answer material for a test, or as an atlas), such Deliverable is a work made for hire for , and will be the author and owner of the copyright therein from the moment of creation.
(c) Assignment. To the extent that any Deliverable does not qualify as a work made for hire, hereby irrevocably assigns to , effective upon receipt of full payment for such Deliverable, all right, title, and interest in and to such Deliverable, including all copyrights, patents, trademarks, trade secrets, and other intellectual property rights worldwide, in perpetuity.
(d) License for Partially-Paid Deliverables. If this Agreement terminates before has paid in full for a Deliverable, grants a non-exclusive, non-transferable, revocable license to use that Deliverable solely for 's internal purposes until the outstanding balance is paid, at which point the assignment in Section (c) becomes effective.
(e) Agency Portfolio License. grants a non-exclusive, royalty-free, perpetual license to display the Deliverables (excluding any Confidential Information) in 's portfolio, case studies, and marketing materials, unless notifies in writing that a specific Deliverable is subject to confidentiality restrictions.
(f) Third-Party Content. will obtain all necessary licenses for third-party content (stock images, fonts, music, software) incorporated into Deliverables, and will disclose to any third-party license restrictions that limit 's use of the Deliverables.
(g) Moral Rights. To the extent permitted by applicable law, waives all moral rights in the Deliverables in favor of .
(h) Agency Tools & Methodologies. Notwithstanding the foregoing, retains all right, title, and interest in its proprietary tools, templates, methodologies, know-how, and general processes used to create the Deliverables. 's rights are limited to the Deliverables themselves.
7. Limitation of Liability & Consequential Damages Exclusion
LIMITATION OF LIABILITY
(a) Exclusion of Consequential Damages. To the fullest extent permitted by applicable law, neither party will be liable to the other for any indirect, incidental, special, consequential, punitive, or exemplary damages — including lost profits, lost revenue, loss of business opportunity, loss of data, or harm to reputation — arising out of or related to this Agreement, even if the party has been advised of the possibility of such damages and even if a limited remedy fails of its essential purpose.
(b) Aggregate Cap. Each party's total aggregate liability to the other arising out of or related to this Agreement — whether in contract, tort (including negligence), strict liability, or otherwise — will not exceed the total fees actually paid or payable by to during the -month period immediately preceding the event giving rise to the claim, or , whichever is greater.
(c) Exceptions. The limitations in Sections (a) and (b) do not apply to: (i) a party's obligation to indemnify the other for third-party claims of intellectual property infringement under the Mutual Indemnification clause; (ii) liability arising from a party's gross negligence or willful misconduct; (iii) a party's obligations under the Data Protection and Confidentiality clauses with respect to a data breach caused by that party's failure to maintain reasonable security; or (iv) a party's obligation to pay amounts owed under this Agreement.
(d) Basis of the Bargain. Each party acknowledges that the limitations in this Section reflect a reasonable allocation of risk, are an essential element of the basis of the bargain between the parties, and that would not have entered into this Agreement without these limitations.
Exhibit A — Services
Interior design services as briefly described herein, including the phases and deliverables agreed upon between Designer and Client. Compensation is on an hourly, fixed, or percentage basis as specified below; this letter of agreement incorporates the Designer's standard terms and conditions by reference.
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The Client Agreement Interior Designers Actually Send
Interior design engagements run for months, involve procurement decisions worth tens of thousands of dollars, and shift scope regularly. A clear written agreement protects your design fee, sets revision expectations, and confirms who owns the finished drawings.
ContractMaker maps every field to what a real interior design project requires: room or area scope, hourly or flat fee, procurement responsibilities, and a payment schedule tied to project phases. Fill it in and you have a finished, branded letter of agreement, not a template that still needs cleanup.
What Your Interior Design Letter of Agreement Covers
Every field the generator collects translates into a protection or a clear expectation for your client.
Designer and client names, addresses, and project address
Effective date and project description or room scope
Services included: concept development, space planning, procurement, site visits, contractor coordination
Fee structure: flat project fee, hourly rate, or percentage of procurement
Payment schedule tied to project milestones or phases
IP assignment: drawings and concepts transfer to the client on full payment
Change order process for scope additions after the agreement is signed
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Is an interior design letter of agreement legally binding?
Once both parties sign, a clear written agreement is generally enforceable. ContractMaker produces the document; it is not legal advice. For large commercial projects or complex procurement arrangements, have a lawyer review it first.
Should I collect a deposit before starting design work?
Most interior designers require a deposit of 25 to 50 percent upfront, with the balance tied to design phases or delivery milestones. The payment terms field in ContractMaker lets you set whatever schedule fits your practice.
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You can describe procurement responsibilities in the services section and note how trade pricing or markups are handled. Many designers add a short note clarifying that trade discounts form part of the overall design fee structure.
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