Hiring an Interior Designer: What Your Service Agreement Should Include

Hiring an interior designer can be one of the best investments you make in a renovation—whether you’re updating a primary residence, finishing a basement, remodeling a restaurant, or refreshing an office suite. A skilled designer brings vision, technical knowledge, trade relationships, and project coordination. But the success of the relationship often comes down to something less glamorous than fabric swatches: the contract.

A clear interior design service agreement protects both sides, prevents misunderstandings, and gives you a roadmap for scope, timeline, and cost. If you’re about to sign—or you’re comparing proposals—this guide explains what to include in a design contract, common interior design contract terms, and practical client-side tips to reduce risk.

Note: This article is educational and not legal advice. For project-specific guidance, consult a licensed attorney in your jurisdiction.

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Why a “hire interior designer contract” matters (even for small projects)

Design work can involve dozens of moving pieces: drawings, procurement, trade coordination, change requests, and vendor lead times. Without a written agreement, disputes often arise over:

• What the designer is (and isn’t) responsible for
• How many revisions are included
• Who buys furniture and materials—and who owns the discounts
• How markups, fees, and reimbursable expenses are handled
• What happens when a product is backordered or damaged
• How cancellations, delays, and scope changes are priced

A solid hire interior designer contract doesn’t just “protect” you. It sets expectations so the project runs smoothly.

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1) Parties, project address, and “who is the client?”

Start with the basics, but don’t gloss over them. Your agreement should identify:

• The legal name of the designer (individual or firm)
• Your legal name (and entity name if a business)
• The project address(es)
• Primary contacts and decision-makers
• Whether you’re authorizing a representative (spouse/partner, facility manager, etc.) to approve designs and expenses

Client tip: If more than one person will approve selections, define how decisions are made. Many delays happen when approvals are unclear.

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2) Scope of services: the heart of the interior design service agreement

The single most important section in any interior design service agreement is the scope. It should list exactly what the designer will deliver.

Common scope categories include:

A. Design phases and deliverables

Your agreement should specify which phases are included, such as:

• Programming / discovery (measurements, lifestyle/brand needs, inspiration)
• Space planning (floor plans, furniture plans)
• Concept design (mood boards, palettes, direction)
• Design development (refined selections, layouts, elevations)
• Construction documentation (drawings/specs for contractors, if offered)
• Procurement / purchasing management
• Installation / styling / punch list

For each phase, define deliverables:

• Number/type of floor plans or elevations
• Whether drawings are “for permit” or “for pricing only”
• Whether you’ll receive 3D renderings, and how many
• Whether a finish schedule or FF&E (furniture, fixtures & equipment) schedule is included

B. What’s excluded (to avoid surprise add-ons)

Strong contracts include a clear “Exclusions” list, such as:

• Structural engineering, architecture, MEP (mechanical/electrical/plumbing) design
• Permit filing or code compliance review
• Contractor services or construction management (unless explicitly included)
• Site safety and jobsite supervision
• Specialty consultants (acoustics, lighting design, kitchen design beyond layouts, etc.)

Client tip: If you assume the designer will “manage the contractor,” make sure the agreement says so—otherwise you may only be getting design deliverables.

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3) Timeline, milestones, and client responsibilities

Interior design timelines often depend on your responsiveness and vendor lead times. Your contract should include:

• Target start date and estimated completion date
• Milestone schedule (concept approval, design development sign-off, ordering deadlines)
• A clear statement that timelines may shift due to:
  • Client approval delays
  • Contractor scheduling
  • Product backorders or discontinued items
  • Shipping delays or damage claims

Define your responsibilities

A well-written contract includes a “Client Responsibilities” section, such as:

• Providing access to the property
• Responding to requests for approval within a set period (e.g., 3–5 business days)
• Confirming measurements or existing conditions (especially if you’re providing them)
• Making timely payments to avoid procurement holds

Client tip: Ask for an approvals process: What requires written approval? Email is fine? Is there a project portal? This prevents “I thought you approved that” disputes.

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4) Fees and payment terms: design fees vs. product costs

Designers price services in different ways. Your interior design contract terms should clearly state the pricing structure and what it includes.

Common fee models

• Hourly rate: Good for smaller scopes; make sure estimates and caps are addressed.
• Flat fee / fixed fee: Often tied to defined deliverables; clarify revision limits and change orders.
• Percentage of project cost: Common in high-end residential; define “project cost” carefully.
• Hybrid: e.g., flat fee for design + hourly for procurement/admin.

Payment schedule

Include:

• Deposit/retainer amount and when it’s due
• Milestone payments (e.g., 40% start / 40% design development / 20% installation)
• Late fees and interest (if any)
• Payment method and payment deadlines

Client tip: If you want cost control, negotiate a not-to-exceed amount for hourly work, or require written approval before exceeding a threshold.

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5) Procurement, purchasing, and markups: clarify the money flow

One of the most misunderstood areas when homeowners and business owners hire an interior designer is procurement. Your agreement should answer:

• Who purchases furniture/materials: you or the designer?
• Will purchases be made through designer trade accounts?
• Are trade discounts passed through to you? Partially? Not at all?
• Are there markups (sometimes called “retail pricing” or “handling fees”)?
• Are shipping, receiving, storage, and delivery billed separately?
• What happens if an item is discontinued or delayed?

Reimbursable expenses

Your contract should define reimbursables such as:

• Site visits/travel (mileage, parking)
• Printing and plotting
• Samples and mockups
• Freight, warehousing, white-glove delivery
• Expediting fees, restocking fees

Client tip: Request a written procurement policy. A designer isn’t wrong to mark up items—many firms make profit through procurement—but you should know the pricing method upfront.

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6) Revisions, change orders, and scope creep protections

Design is iterative. Your agreement should specify:

• How many concept rounds and revisions are included
• What counts as a revision vs. a new concept direction
• Hourly rate (or fixed fees) for additional revisions
• How change orders are approved (in writing)

A good “changes” clause prevents scope creep like:

• “Can you just add one more room?”
• “Can you coordinate with three additional vendors?”
• “Can you redesign after we changed contractors?”

Client tip: If you’re indecisive, pay special attention here. Unlimited revisions can sound nice, but it often leads to longer timelines and frustration on both sides.

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7) Coordination with contractors and trades: define the designer’s role

Many clients assume a designer will “run the project.” Sometimes they will—sometimes they won’t.

Your interior design service agreement should clearly state whether the designer will:

• Attend contractor meetings (and how many are included)
• Review shop drawings, submittals, or finish samples
• Answer RFIs (requests for information) from trades
• Conduct site visits (and whether they are scheduled or “as needed”)
• Perform punch list walk-throughs
• Manage installation day logistics

Also clarify what the designer is not responsible for:

• Construction means and methods
• Jobsite safety and OSHA compliance
• Contractor scheduling and supervision (unless contracted)
• Verifying contractor work is code-compliant

Client tip: If you want a designer to act as your representative during construction, ask for a defined “construction administration” scope with hours/site visits included.

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8) Risk allocation: warranties, product issues, and damage

This is where many disputes arise—especially during delivery and installation.

Key terms to look for:

Product warranties and defects

• Are warranties provided by the manufacturer, vendor, or designer?
• Who handles warranty claims and returns?
• Is there an added fee for claim management?

Damage, loss, and shipping claims

• Who bears the risk of loss during shipping?
• Who inspects items at delivery and notes damage?
• What happens if an item is damaged and must be remade?

Substitutions

• If an item becomes unavailable, does the designer need written approval for substitutions?
• How are price differences handled?

Client tip: Make sure the agreement explains what happens if a sofa arrives wrong or damaged—timelines and accountability should be spelled out.

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9) Intellectual property: who owns the plans and designs?

Interior designers often retain ownership of their drawings and design concepts while granting you a limited license to use them for your project.

Your contract should address:

• Who owns drawings, renderings, and specifications
• Whether you can reuse plans for another property
• Whether you can share plans with other designers or contractors
• Whether the designer can photograph and publish the project

Client tip: If privacy matters (celebrity clients, sensitive commercial spaces, high-security homes), negotiate a confidentiality clause and limit publicity rights.

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10) Communication rules and decision-making process

A practical contract includes:

• Primary communication channel (email, project management platform)
• Expected response times
• Meeting cadence (weekly calls, biweekly site visits)
• Who can approve costs and design selections

Client tip: If you’re a business owner, specify who has authority to approve spend (owner vs. GM vs. facilities) to avoid internal confusion.

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11) Termination, pausing the project, and refunds

Renovation plans change. Your agreement should include:

• How either party can terminate (notice requirements)
• What fees are due upon termination (work performed to date, committed orders)
• Whether retainers are refundable (often they are not)
• What happens to purchased items if you terminate (delivery to you? storage fees?)
• Kill fees or minimum charges (if any)

Client tip: Watch for “non-cancellable” items. Once custom goods are ordered, you may be responsible even if the project stops.

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12) Dispute resolution, governing law, and liability limitations

These “legal boilerplate” clauses matter when something goes wrong.

Common interior design contract terms include:

• Governing law (which state’s law applies)
• Venue (where disputes are handled)
• Mediation/arbitration requirements (optional but common)
• Limitation of liability (caps the designer’s liability to fees paid, etc.)
• Indemnification (who covers what types of claims)

Client tip: If you see a limitation of liability clause, don’t assume it’s unfair. It’s common—but make sure it’s reasonable and doesn’t waive rights you truly need (especially for commercial projects with higher risk).

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13) Insurance: what coverage should you ask about?

Interior designers may carry different types of insurance depending on services offered. Consider asking about:

• General liability insurance
• Professional liability / errors & omissions (E&O)
• Workers’ compensation (if they have employees)

If your designer is not performing construction, they likely won’t carry builder’s risk—but your contractor might.

Client tip: For commercial renovations, your landlord or lease may require specific insurance coverage and certificate of insurance (COI) language.

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A client-side checklist: what to include in a design contract before you sign

Use this quick checklist when reviewing your interior design service agreement:

1. Clear scope with deliverables and exclusions
2. Project phases and approval points
3. Fee structure + payment schedule + late fees
4. Revision limits and change order process
5. Procurement policy (discounts, markups, shipping, receiving, storage)
6. Timeline assumptions and client response obligations
7. Contractor coordination responsibilities (and limits)
8. Warranties/damage claims process
9. IP ownership and usage rights
10. Photography/publicity and confidentiality (if needed)
11. Termination and what happens to outstanding orders
12. Dispute resolution + governing law
13. Insurance expectations and COIs (commercial especially)

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Common red flags (from a client/buyer perspective)

When deciding whether to sign, be cautious if:

• The scope is vague (“design services as needed”) with no deliverables
• Pricing is unclear or procurement is not explained
• There’s no written change order process
• The designer promises specific completion dates without acknowledging lead times
• The contract shifts all risk of damage, delays, or vendor issues to you with no process for claims
• You’re pressured to sign without time to review

A good agreement doesn’t need to be adversarial—it just needs to be specific.

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FAQs: Questions homeowners and business owners ask before signing

Is an interior design contract necessary if I’m only doing one room?

Yes. Even single-room projects can involve procurement, deposits, custom items, and revisions. A simplified agreement is still better than none.

What’s the difference between an interior designer and a contractor in the contract?

A designer provides planning, selection, and coordination services; a contractor performs construction. Your designer’s contract should not make them responsible for construction means, methods, or site safety unless they explicitly provide construction management.

Can I negotiate interior design contract terms?

Often, yes—especially around scope clarity, revision limits, procurement transparency, and communication expectations.

Who owns the drawings and plans?

Usually the designer retains ownership but grants you a license to use them for the project. If you need broader rights, negotiate it.

What should I do if I don’t understand the procurement markup?

Ask for the designer’s purchasing policy in writing and confirm whether pricing is “net + markup” or “retail,” and how freight/receiving/storage are billed.

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Other questions to continue learning

• How do interior designers typically charge: hourly vs. flat fee vs. cost-plus?
• What is “construction administration” in an interior design agreement?
• Should you require your designer to carry E&O (professional liability) insurance?
• How do you compare two interior design proposals fairly?
• What contract terms help prevent renovation delays and budget overruns?
• What’s the best way to document approvals and change orders during a remodel?
• How should a commercial tenant coordinate design contracts with landlord requirements?

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Final thoughts: get the agreement right before the first sample arrives

A great designer can transform your space—but a great interior design service agreement transforms your experience by setting expectations about scope, budget, timing, and responsibilities. If you’re evaluating what to include in a design contract, focus on clarity around deliverables, revisions, procurement, and risk. Those are the areas where most client frustrations happen—and where the right interior design contract terms can prevent them.

If you want a faster way to generate a clear, client-friendly agreement (and customize it for your project), you can create one using Contractable, an AI-powered contract generator, at https://www.contractable.ai.