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InteriorDesignReferenceManual
Ch. 25 Owner-Designer Agreements
5
Other
Not Applicable
08/25/2007

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Cards

Term
all contracts should contain what provisions?
Definition
1. parties to the contract and date and signatures by legally authorized parties
*for residential work,get husband and wife to sign
2. scope of work, specifically itemized services provided and excluded
3. purchasing agreements - clarification of owner and designer responsibilities - consistent with UCC
4. Method of payment
5. reimbursable expenses, fees for consultants
6. extra services - list them out and the charges for them
7. responsibilites of the client (buying furniture, reviews, info needed,etc)
8. ownership of the documents - states that the designer retains the rights of ownership to the documents, and that the documents are only for the specific project and cannot be used for other jobs without permission and compensation
9. provisions for arbitration
10.signatures - legally valid if only the client signs, but better if both sign and date
Term
most common additional services
Definition
1. organizing and participating in selection interviews with contractors
2. receiving, inspecting, and accepting or rejecting FFE on behalf of owner
3. providing post occupancy evaluations
4. providing a set of record drawings based on data furnished by contractor
5. providing services made necessary by the default of any contractor or supplier
6. providing services in connection with public hearing, mediation, etc, except where the designer is a party thereto
Term
owner responsibilities in AIA contract
Definition
1. furnish full info regarding requirements of the project, including budget that provides contingencies as well as for the basic cost items
2. furnish all legal, accounting, and insurance counseling services necessary for the project
3. provide suitable space for receipt inspection and storage of materials
4. removal or relocation of existing facilities, furniture and equipment unless otherwise provided for in contract
5. owner has to designate who has the ability to represent and act on the owner's behalf for the day to day decision making - when designer submits questions, owner's designee must answer promptly to avoid delays
6. if the designer is purchasing furniture, the owner must maintain working funds that can be used for the purchase
Term
project cost/contract
Definition
the interior designer does not warrant that bids or negotiated cost will not vary from the owner's budget or from any estimate prepared by the designer - these are only best judgement
specifically, both parties would have to agree to a fixed limit, and if the lowest bid exceeds that number, then the designer is obligated to provide design to reduce the scope and cost
Term
5 ways of charging for professional services
Definition
1. fixed fee - typically paid out monthly
*to be profitable, scope must be carefully itemized in the contract along with services that are not included
2. hourly rate - billing rate, can set hourly not to exceed
3. percentage of project cost - must have good idea of amount of work required and expected cost of the project
4. area fee
5. retail method - reseller of goods
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