The Most Overlooked Mistakes in Interior Design Contracts (And How to Fix Them)
A well-crafted contract is one of the most important tools in an interior designer’s business. It protects both the designer and the client, ensuring clear expectations, smooth project execution, and fair compensation. However, many designers overlook key details in their contracts, leading to miscommunication, scope creep, payment delays, and legal risks. In this post, we’ll explore the most common mistakes found in interior design contracts and how to fix them to safeguard your business.
1. Not Defining the Scope of Work Clearly
One of the biggest mistakes in interior design contracts is failing to outline exactly what is included in the project.
‼️ Why It’s a Problem:
Leads to scope creep—where clients expect additional work outside the original agreement.
Causes misalignment between client expectations and actual deliverables.
Results in budget overruns and additional unpaid work.
✅ How to Fix It:
Clearly list all services included (e.g., space planning, furniture selection, renderings, project management, etc.).
Include a clause for revisions and extra work, specifying additional fees.
Define what is not included in the contract to avoid misunderstandings.
2. Vague Payment Terms & Fee Structure
Designers often fail to establish clear payment terms, leading to late payments and disputes.
‼️ Why It’s a Problem:
Clients may delay payments, affecting your cash flow.
Unclear fee structures can result in undercharging for your work.
Creates confusion on when payments are due.
✅ How to Fix It:
Specify exactly how and when payments are due (e.g., deposit upfront, milestone payments, or final balance before project completion).
Require a non-refundable retainer before starting work.
Include late payment penalties to encourage timely payments.
Detail how reimbursable expenses (such as materials and third-party services) will be handled.
3. No Clause for Scope Changes & Additional Fees
Many designers fail to address what happens when a client requests changes beyond the agreed-upon scope.
‼️ Why It’s a Problem:
Leads to unpaid extra work.
Delays project timelines due to constant revisions.
Creates frustration when clients expect endless modifications without additional costs.
✅ How to Fix It:
Include a change order policy stating that any modifications will incur additional fees.
Outline an hourly or fixed rate for additional work.
Set a limit on the number of revisions included in the base price.
4. Failing to Address Project Delays & Client Responsibilities
Projects often get delayed due to client indecision, late approvals, or contractor issues, yet many contracts don’t specify how to handle these situations.
‼️ Why It’s a Problem:
Designers may get stuck waiting for approvals, delaying other projects.
Unclear timelines can result in missed deadlines and frustrated clients.
Leads to financial loss if delays prevent you from taking on new work.
✅ How to Fix It:
Set clear deadlines for client approvals and material selections.
Specify that any delays caused by the client will extend project timelines and may incur additional costs.
Include a force majeure clause to protect against unforeseen delays (e.g., supply chain issues, contractor delays, or natural disasters).
5. No Intellectual Property & Portfolio Rights Clause
Many designers overlook ownership rights, leading to disputes over design concepts and portfolio use.
‼️ Why It’s a Problem:
Clients may use your designs elsewhere without permission.
Some clients may refuse to allow you to showcase completed projects in your portfolio.
Creates legal grey areas regarding copyrights and ownership.
✅ How to Fix It:
Include a copyright clause stating that all design concepts remain your intellectual property.
Add a portfolio usage clause allowing you to photograph and share the project in your marketing and social media.
Specify whether digital or physical renderings can be used by the client post-project.
6. Ignoring a Termination & Refund Policy
Some projects don’t work out, and designers often lack a proper exit strategy in their contracts.
‼️ Why It’s a Problem:
If a client decides to cancel mid-project, you may be left unpaid for work completed.
Disputes arise if refund policies are not clearly defined.
Unexpected cancellations can disrupt your workflow and cash flow.
✅ How to Fix It:
Define the termination terms, including how much notice is required.
Specify non-refundable fees for work already completed.
Outline refund policies, if applicable, based on project stages.
7. Lack of a Liability Clause
Many contracts fail to include protection against liability for unforeseen issues.
‼️ Why It’s a Problem:
Clients may hold you responsible for issues beyond your control (e.g., construction defects, third-party delays, or product damages).
Without legal protection, designers may face legal claims or financial loss.
✅ How to Fix It:
Include a liability disclaimer stating that you are not responsible for contractor errors, product defects, or delays caused by third parties.
Add a hold harmless clause to protect against lawsuits.
Require clients to sign off on final selections and installations to confirm their approval.
A well-drafted interior design contract is the foundation of a successful, stress-free business. By addressing these common mistakes, you can protect yourself from legal disputes, unpaid work, and misaligned expectations.
Need a contract template? Download my Interior Design Contract Template to ensure your agreements cover all essential clauses and safeguard your business!
This article may contain affiliate links for your convenience. By clicking on any of these links and completing a purchase, we may earn a small commission, at no extra expense to you. Your support for this blog is greatly appreciated.
