Interior design contracts have more moving parts than most freelance contracts. A logo project has a clear start and end. An interior design engagement spans weeks or months, involves procurement, trade vendors, contractor coordination, and multiple approval stages — each one a potential dispute if the contract doesn't address it upfront.
This guide covers every clause an interior design contract needs, with attention to the industry-specific terms most template sites leave out.
The Core Sections Every Interior Design Contract Needs
1. Parties and Project Overview
Start with legal names — yours and the client's — and the property address being designed.
Include a brief project description: which rooms or spaces are in scope, the general style direction discussed, and the type of engagement (residential, commercial, full-service design, e-design, consultation only).
This scopes the project before the detailed clauses begin.
2. Scope of Services and Project Phases
Interior design projects typically move through defined phases. Name them explicitly.
Schematic Design: Initial concepts, space planning, mood boards, preliminary material and furniture direction. The client sees the overall vision for the first time.
Design Development: Refined drawings, finalized furniture selections, material specifications, paint palettes, lighting plans. Decisions are made at this phase.
Procurement: Ordering approved furniture, fixtures, and materials. Managing trade vendors and delivery timelines.
Installation and Styling: Coordinating delivery, overseeing installation, final styling of the space.
Specify which phases are included in the contract. Not every client needs all four. An e-design client may only want schematic design and a shopping list. A full-service client gets everything.
3. Design Fees and Compensation Structure
Interior designers typically use one of three fee structures. Be explicit about which you're using.
Flat project fee: A defined total for the full scope. Best for projects with a clear, bounded scope. Specify what triggers additional fees if scope expands.
Hourly rate: You bill for time at a stated rate. Requires time-tracking and regular reporting. Include a minimum retainer and a not-to-exceed estimate if possible.
Percentage of procurement: A percentage (typically 25–35%) applied to the cost of furniture and materials you purchase on the client's behalf. Common for full-service residential design.
Hybrid: Design fees for your time plus a markup on procurement. Often the clearest structure for clients.
Whichever you use, put the numbers in the contract. Vague compensation language is the most common source of interior design disputes.
4. Retainer
Require a retainer at signing — typically equal to the first phase of work or a defined minimum against your total estimated fee.
The retainer is non-refundable if the client cancels before the project begins, compensating you for holding the time and declining other projects.
5. Procurement, Trade Pricing, and Markup
This section is unique to interior design and often the most legally sensitive.
Trade pricing: As a designer, you have access to trade-only vendors and pricing unavailable to the public. Clarify that you purchase at trade pricing and bill clients at retail or at your marked-up rate.
Markup policy: State your markup percentage explicitly. Most designers add 20–35% to trade pricing. Clients should know this upfront, not discover it on an invoice.
Client purchases: If the client wants to purchase items directly, state whether you charge a design fee for specifying items you don't procure.
Deposits on orders: Vendor orders typically require a deposit of 50–100% upfront. State that clients must fund these deposits before you place orders.
6. Client Approval Process
Establish a clear approval workflow before any order is placed.
Require written client approval (email confirmation is fine) for:
The schematic design direction
Each item on the specification list before procurement begins
Any changes to previously approved selections
Once an item is ordered, changes may not be possible — or may incur restocking fees, shipping costs, or full replacement cost. Your contract should state that you're not responsible for these costs if the client changes their mind after written approval.
7. Revision and Change Policy
Interior design projects change. New furniture arrives and doesn't look right. The client changes their mind about a paint color mid-project.
Define what's included versus what triggers additional fees:
Revisions to a design concept before procurement: typically included within a defined round count
Changes after procurement has begun: billed at your hourly rate for redesign time plus any vendor fees
Scope additions (adding a room, changing the project type): require a contract amendment
8. Contractor and Vendor Coordination
If you're coordinating with contractors, tradespeople, or other vendors:
State that you are acting as a design consultant, not a general contractor. You are not responsible for the work quality, timelines, or actions of third-party vendors you recommend.
If contractors damage existing property or furnishings, that's between the client and the contractor. Put this in writing.
9. Site Visits and Travel
Specify how many site visits are included in your fee and what happens beyond that.
Include a travel policy for projects outside your local area: mileage rate, whether travel time is billable, and who covers accommodation and transportation for overnight travel.
10. Client Responsibilities
The project only moves as fast as the client allows. List what you need and by when:
Timely decisions within a defined review window (e.g., 5 business days)
Access to the property for measurements and site visits
Honest feedback during design reviews
Prompt payment of procurement deposits
Include a delay clause: if the project stalls due to client inaction for more than 30 days, you may pause work and require a restart fee or schedule renegotiation.
11. Intellectual Property
Your design concepts, drawings, and specifications are your intellectual property until fully paid.
The client does not receive the right to use your design concepts if they end their relationship with you before full payment. They cannot hand your mood boards and specs to another designer to execute.
On full payment, they receive a license to implement the approved design as specified.
12. Cancellation and Project Termination
Define termination rights for both parties.
Client termination: the client owes all fees earned to date plus any costs already incurred (vendor deposits, materials ordered). Non-refundable retainer is retained regardless.
Your termination: if a client fails to pay within a defined window, you may suspend or terminate the project. You retain all fees earned and recover any out-of-pocket costs.
13. Limitation of Liability
You are not responsible for:
Contractor workmanship
Vendor delays or discontinuations
Product availability changes after specification
Color variations between digital representations and physical samples
Cap your liability at the total fees paid for the design phase.
Getting the Contract Signed Before the First Site Visit
No measurements taken, no mood boards started, until the contract is signed and the retainer is received.
This is professional standard. Clients who want to "start chatting" before the paperwork is done are clients who will question your fees later.
Tools like FileCurrent let you send a contract with an e-signature link — the client signs in one click, you're notified, and the project can officially begin. Legally binding under the ESIGN Act and UETA.
Frequently Asked Questions
What should an interior design contract include?
Project scope and phases, fee structure (flat, hourly, or procurement markup), retainer terms, procurement and markup policy, client approval process, revision and change fees, contractor coordination boundaries, intellectual property, termination rights, and limitation of liability.
What is a letter of agreement vs. a full interior design contract?
A letter of agreement (LOA) is a simpler, less formal version — often used for smaller projects or initial consultations. A full contract is more detailed and appropriate for full-service residential or commercial projects. Both are legally binding if signed. The key difference is specificity: a full contract covers all phases, procurement, and change processes in detail.
Can a client keep my design concepts if they terminate the contract?
Only if your contract allows it. Standard contracts include an IP clause stating that design concepts, drawings, and specifications remain yours until the project is paid in full. A client who terminates and tries to use your concepts without payment is in breach of contract.
How do interior designers charge for procurement?
Most designers charge a markup on items they purchase — typically 20–35% over their trade cost — and bill this as part of the project. Some bill retail price and keep the trade discount as their margin. Either is legitimate; what matters is that it's disclosed clearly in the contract before procurement begins.
Do I need a separate contract for each phase?
Not necessarily. A single comprehensive contract that covers all phases is cleaner and more professional. Use a contract amendment (a short signed addendum) for changes in scope that weren't anticipated at signing.
The Bottom Line
Interior design projects move through phases, involve third-party vendors, and span months. The contract is what keeps everyone's expectations aligned across all of that time.
Get it signed — with the retainer — before the first site visit. FileCurrent makes sending contracts and collecting e-signatures fast and simple. 7-day trial, no card required. For a related guide on contracts for other creative services, see our web design contract template.
This article is for informational purposes and does not constitute legal advice. Consult a licensed attorney for contracts specific to your jurisdiction.