Professional Practice Midterm

value oriented fee

A fee method that has become increasingly accepted in recent years is one based on value. It is not so much a method as a concept that affects the fee amount. The experienced interior designer brings value to the project based on his or her experience with the type of project and scope of services. A designer with several years ' experience doing hospitality projects, for example, should be able to bring greater value and be worth more to the client than a designer with very little experience who wants the same job. The value-oriented , or value-based , method is based on the concept that the design firm prices services based on the value or quality of the services rather than focusing solely on the cost of doing those services. This fee method will only work for a design firm whose services have additional value in the marketplace. It is critical for readers to understand that although the designer grasps the value of his particular services versus those of other designers, the client may not share this view. It is the client ' s/buyer ' s view of value that counts. The perception of most clients is that all designers do the same thing and provide the same services. With the value-oriented fee method, the designer must show the client how his services are valuable to the client and superior to those of competing designers. The designer must show also how he differs from the competition and is thus worth the fees requested. If the client perceives that what one design firm offers has greater value than what other design firms offer, the more valued firm will win the contract. In many cases, this perceived value means that the design firm can charge a premium for its services. Firms with a lot of experience are expected to do a better job. For example, a designer who has specialized in residences for 10 years has a far greater expertise in that type of facility than someone starting out or who has never designed a private residence. The first firm will try to show the client that experience has value and that this value should be compensated accordingly. Clients who are unfamiliar with or do not appreciate the time and subtleties involved in completing a project react favorably to the value-oriented method. The fee is based on the designer ' s ability to meet the client ' s expectation and experience in doing the work, rather than on the time it will take to complete the project. When the designer can clearly differentiate how she can be of value to the client, and can demonstrate that her experiences and ability warrant this consideration, this fee method should be considered.

proposal

A proposal is defined in the dictionary as " a plan or suggestion put forward for consideration or discussion by others. " 2 A contract, in simple terms, is an agreement between two parties to do or not do something. The contract contains statements concerning consideration along with the offer of what will be done. A proposal is more commonly thought of as the foundation for preparing the contract rather than as the actual contract. Although in some respects a proposal and a contract provide similar information, they serve different purposes. Generally, in architecture and interior design, a proposal sets forth what is to be done based on information provided by the client through a written document or obtained from the client through other means. It states the designer ' s understanding of the needs and explains how the design firm will approach the solution. A contract also generally explains the scope of work, but details more information on fees, and includes clauses that are uncommon to a proposal (such as photographic rights, among others). The term proposal can have other meanings. Designers sometimes use the term proposal instead of contract or letter of agreement . To some clients, " proposal " sounds less legally threatening than " contract. " Still, because it can be considered an offer from the designer to the buyer, a proposal can serve as a contract if signed by the client. This often depends on the complexity of the project. Some designers use the term proposal to define what will be purchased for a client. If the client agrees with the proposal, the designer will then move forward with ordering those items. Another common use of the term proposal is in the request for proposals (RFP) commonly used in commercial interior design. In this context, the proposal is a response to a request issued by a client for specific information concerning a proposed project. It is not a contract in this context. In this circumstance, the proposal is more a marketing tool than an agreement to begin design work. A detailed discussion of the request for proposal document is included in Chapter 24.

chronological resume

A resume where items are ordered by the date they occurred. - The style of resumé that remains the most common is the one that provides information in reverse chronological order. It is called a chronological resumé and states work experiences (and educational history) exactly when they occurred, starting with the most recent first. This type of resumé is easy to`

important information you would need to know from your client before doing a contract - scope of work, budget...etc.

AIA Contracts- detailed elaborate contract agreement between designer and client, what we will do and how much we will charge, specific location of job, and compensation we will get Design fee for initial layout, cost plus for installing goods and services or other ways, this is shown in contract Letter of Agreement- a simplified contract, outlines everything in simple ways

ASID

American Society of Interior Designers (ASID). -members are qualified by education, experience and examination, and adhere to a strict code of ethics and professional conduct.[6] Through educational programs, research, seminars and conferences, ASID members receive the most current information on developments in design, as well as appropriate materials, technology, building codes, government regulations, flammability standards, sustainable and green design, product performance, design psychology, occupant populations, and more. ASID also supports legislative and advocacy efforts to protect interior designers' right to practice.

invoice

An invoice is simply a bill. The interior design firm sends out invoices to clients for services performed and/or goods purchased in the client ' s name. Suppliers send invoices to the designer for the goods or services that the interior design firm has ordered. Invoices from suppliers are commonly sent at the same time the merchandise is shipped. The invoice generally arrives at the office a few days before the merchandise. Carefully check incoming invoices and acknowledgments. Many suppliers use invoices that look very similar to their acknowledgments; the only difference may be the label. An invoice must be paid, whereas acknowledgments are for information only. The invoice must correspond to what was ordered and should be checked against the purchase order and acknowledgment. The invoice must also be checked against what is actually received in order to properly set up delivery and bill the client. Figure 13-6 shows an invoice from a supplier to a designer. In this case, the invoice is for the item shown on the acknowledgment in Figure 13-5. The invoice may include special pricing such as an extra cash discount for prompt payment (see Chapter 8). These discounts can amount to substantial savings for a design firm that pays the invoice within the specified time period. Not all suppliers offer this special discount to all designers. Manufacturers expect prompt payment from the interior designer. Too many busy design firms delay or even forget to send invoices to clients. Best practices should include invoicing clients as quickly as possible, so as to keep receivables very low and good cash flow moving in the design firm. Poor cash management through slow billing can be a serious problem for any interior design firm. Delays in billing can also lead to a few unscrupulous clients not paying for goods or services at all. Goods should be billed within 10 days after the goods have been delivered and accepted by the client (see Figure 13-7). Services should be billed once services have been completed, for short-duration projects; on a monthly basis, for larger projects; or on whatever billing basis for services was agreed to in the contract. Including language such as " billing upon delivery " or " payment due ten days after receipt of invoice " on the contract for services or the sales confirmation alerts the client to payment requirements. Similar terms should be included on the invoice. Some firms try to use item-by-item billing on large projects. This, of course, means that if the project has 20 items that are to be delivered and only 2 arrive, the firm delivers the 2 items and bills only for those 2 items. The next time more items arrive, they are also delivered and billed. Although this may help the firm ' s cash flow, it can increase costs and cause many headaches for the firm. There is a cost attached each time the delivery truck delivers goods to

square foot method fee

Another method that requires a good history with projects is the square-foot method . The fee is determined by a rate per square foot times the amount of square footage of the project being designed. Commonly used in commercial design and by some designers in residential practice, the square-foot method can be a profitable way of determining the design fee. There are no industrystandard square-foot fees, so the designer must have some experience with similar projects to establish an appropriate rate. An owner who has never used the square-foot method for determining fees can gather data on several completed projects (for example, similar-size doctors ' suites or real estate offices). The actual design fee charged for these projects is divided by the square footage of the project, which provides a historical view of the per-square-foot cost of the design work. Consideration for the scope of services, expenses, and profit margin are then placed into the mix to determine the square-foot fee. Fee amounts will vary based on the type of project and the scope of services. It is obvious that a more complex project will take more time, so the square-foot rate for such a project should be higher. In addition, regional factors, the design firm ' s experience, and local competition may drive rates up or down.

NCIDQ

-the NCIDQ stands for the National Council for Interior Design Qualification, and is a three part exam developed and administered by the CIDQ: Council of Interior Design Qualification, which was founded in 1974. -NCIDQ is not a professional association in the same way as ASID or IIDA. No individual memberships exist within NCIDQ. Membership resides with state and provincial member boards representing jurisdictions that regulate the interior design profession. Individuals are certificate holders, meaning that they have successfully completed all the requirements of the examination. Certificate holders are not allowed to place the NCIDQ acronym on their business cards or other marketing materials, as

5 phases of project management

1. programming 2. schematic design 3. Design Development 4. Contract Documents 5. Contract Administration

Combination resume

A combination resumé utilizes characteristics of both the chronological and the functional resumé and combines them into one. Usually, this results in a resumé in which functional skills are described, as in the normal functional resumé, followed by a brief chronological listing of educational and work experiences. A combination resumé highlights skills that are related to the job being sought and deemphasizes either a limited or a spotty work history. This kind of format can work very well for students whose skills learned in school and internships will be of greater interest to a prospective employer than work history that consists of a series of part-time jobs. Figure

cost plus percentage markup

A compensation method that many interior designers utilize when they also sell merchandise to the client is the cost plus percentage markup method. The client agrees to pay a specific markup on the actual cost of the merchandise and other items that the designer sells to the client. Increasingly, this method has been combined with the hourly method for design consultation. In this situation, the client obtains a better price on merchandise when he or she buys from the designer, because the designer passes on all the discounts that suppliers provide, arriving at a competitively low cost. Cost plus percentage markup is more commonly used in residential design, but can also be effective for commercial projects. It can be the least remunerative method, if a very small markup is added to the net price or the client does not buy any merchandise from the designer. It can also be quite profitable, though, as long as sufficient product is sold to the client and the markup percentage has been carefully calculated. It is critical, for designers who do not charge a design fee for services, that the percentage be carefully considered and sufficient to create an appropriate amount of revenue and remain competitive. The key in using this fee method is to charge an adequate percentage. There is no average markup, as each firm decides what percentage to use based on business needs, competition, and what the client is willing to pay. Residential designers might charge from 10 percent to more than 30 percent markup. When commercial interior designers use this method, the percentage is generally quite low, due to the competition for the sale of goods in the commercial area of interior design. The cost plus percentage markup method works well for firms as long as: 1. The budget is not reduced at the last moment. 2. The client does not use a lot of existing furniture in the new project. 3. The client does not decide to hold off purchasing any of the merchandise until a later time, thereby reducing the amount of revenues the firm may collect. 4. The client does not decide to purchase items from someone other than the designer. Another segment of the interior design industry that uses the cost plus percentage markup method consists of design firms that are just getting started. Many new design firms offer this method of compensation as a way of competing with larger, more established firms. Remember that the markup amount is not really " profit " in and of itself: It also must cover the designer ' s costs of doing business and direct costs of doing the project. Any firm that is considering the use of this method should use it in conjunction with some other fee method to be sure the firm receives a reasonable gross margin to cover costs and obtain a profit.

percentage off merchandise

A fee method primarily used by commercial interior designers is called the percentage of merchandise and product services method . This fee method is similar to the architect ' s percentage of construction cost method. It is very similar in concept to the cost plus percentage markup method. In this case, interior designers determine the design fee based on a negotiated percentage of the cost of the goods and installation (and possibly some portion of the construction) that will be involved in the project. Firms that do not intend to sell merchandise to the client frequently use this fee method. Because residential designers more often sell merchandise in addition to providing design services, it is not very common for residential designers. The final fee amount results from the percentage that was negotiated multiplied by the budgeted or final costs of the project. This might include the furniture, wall coverings, floor coverings, ceiling and window treatments, lighting fixtures, accessories, built-in cabinets, and even general construction costs. The percentage rate varies with the size and complexity of the project. The larger the project is, the smaller the fee percentage will be. The more complex the project is, the greater the fee percentage will be. For example, a large project like a hotel, with a large dollar volume but a potentially small number of design decisions, would require a smaller percentage fee than a group of individually designed executive offices requiring a great deal of time. There are some disadvantages for the designer that must be weighed carefully: 103 • • • The amount of revenue for the designer is reduced when the client purchases cheaper goods than those specified. A measure of distrust may arise if the client feels the designer is specifying more expensive goods to increase the overall price. The designer may also have reduced revenues when third-party vendors try to " buy the job " at a very low price. Clients may suspect the designer of double-dipping, that is, of earning revenue from the design and specification of the products and also from selling the merchandise. • Because the project fee is based on cost, the client may actually save money if any extra discounts are provided on merchandise that the client purchases. Thus, budgets must be carefully considered to ensure that the project is done as required and that the designer is compensated fairly. This method should be used cautiously and only in combination with another method that will ensure fair compensation for design time and services.

Contract Administration

Assist with securing of bids and pricing. Provide project management supervision of the job site during construction/installation. Procure furniture and furnishings by submitting purchase orders to suppliers and installers. Assist in the procurement of furniture and furnishings through bid administration. Make periodic visits to the jobsite to ensure the work is being done in accordance with the contract documents and specifications. Supervise installation of furniture, furnishings, and equipment. Maintain project management and schedule records. Assist in determination of substantial completion, payments to vendors, and securing releases. Prepare as-built drawings if necessary. Provide or coordinate FF&E product maintenance information to client. Prepare and administer post occupancy evaluations

combination method

Combination Method In many cases, using only one of the described fee methods does not provide sufficient compensation to cover all the expenses and desired profit margin for the firm. Thus, many firms use a combination of two different fee methods to meet their revenue needs. Because projects involve a variety of activities, it is defensible for the firm to charge the client a variety of fees. For example, consider a project that involves a lot of the designer ' s time in meetings with the client, contractors, and the architect for specifying interior finish materials but not a large dollar amount for the actual materials to be purchased. The designer might find that adequate compensation can be reached with an hourly charge for meetings, travel, and on-site supervision in combination with either a cost plus percentage markup or percentage discount from retail for the merchandise sold. If properly considered, a combination of design fee methods can provide excellent compensation to the designer at a fair price to the client. The two methods most commonly combined are cost plus percentage markup with a fixed fee and cost plus percentage markup with an hourly fee. Both residential and commercial interior designers might use either of these methods when they sell merchandise in addition to providing design services. Some clients object to these combination fees, especially when a service fee is combined with product markup. Many clients see the markup (or the consultation fee) as double-dipping. It behooves the designer to explain that the fixed fee (or hourly fee) is calculated to provide only a portion of the revenues needed to cover labor, expenses, and profit and that the client is also obtaining the goods at a substantial discount. An important issue when the fee is an hourly rate/markup combination is the determination of which services will be charged at the hourly rate and which will be considered included in the markup of the merchandise. Designers who use this combination feel that they are more likely to cover all or most of the time that they actually work on the project. This does not always happen with a combination of the fixed-fee and cost plus percentage markup methods. The danger in using either of these combinations is that the designer may rely on the client ' s purchase of goods to generate needed revenue. However, if the client purchases from some other source, delays purchasing, or buys goods at a lower price, the designer will receive less income than estimated. Safeguards can be incorporated into the design contract in the event that some of these problems occur. They are discussed in Chapter 7. The designer can negotiate a reasonable and fair fee by using any of the fee methods described in this section. Considerations for each situation as to what is most appropriate for the designer, the client, and the project always affect the selection of fee method. There comes a time when any interior designer feels that he or she wants to charge more, whether in consideration of the competition or for personal needs. Table 6-5 provides some pointers concerning obtaining higher design fees.

types of non residential design

Commercial interior designers focus on one or more types of spaces used for business and government, such as offices, stores, hotels, restaurants, schools, airports, hospitals, and so on.

commercial project fees

Commercial projects . Commercial designers predominately charge a fee for the services they perform, and less frequently sell merchandise. They use a variety of methods to calculate fees, but commonly use an hourly fee, a fixed-fee method, or the square-footage method; other methods are certainly used, but less frequently. The fixed-fee method has become more popular than the hourly rate because clients get concerned about the " meter always running " when an hourly rate is used.

CIDA

Council for interior design accreditation. -The Council for Interior Design Accreditation (CIDA) is an independent, non-profit accrediting organization for interior design education programs at colleges and universities in the United States and internationally. For more than 35 years, this knowledge-driven organization has been passionately committed to the ongoing enrichment of the interior design profession through identifying, developing and promoting quality standards for the education of entry-level interior designers, and then encouraging, accrediting and supporting educational programs to aspire to those standards.

CFA

Cutting for approval

Schematic Design Phase

Develop spatial and communication adjacencies. Develop preliminary space utilization plans. Prepare preliminary furniture plans. Prepare preliminary selections of interior architectural finishes. Prepare preliminary furniture, furnishings, and equipment selections. Review applicable building, life safety, and accessibility codes, and apply as required. Make preliminary color selections. Refine budgets. Prepare design drawings, such as perspectives, elevations, etc., as needed. Meet with consultants, such as architect, contractors, or others as required.

Design Development Phase

Finalize relationship diagrams or charts. Complete space plans and layouts. Complete furniture, furnishings, and equipment plans. Complete working drawings concerning custom furniture, cabinets, or architectural treatments. Determine specifications of architectural finishes. Prepare specifications of furniture, furnishings, and equipment. Prepare other drawings, such as lighting plans, elevations, and sections, etc., as required. Prepare presentation boards or other presentation media. Prepare presentation graphics, such as renderings of perspectives, isometrics, or axonometric drawings. Prepare a budget of expected costs for all construction and furnishings, as specified.

when to use an hourly fee

For the initial consultation if the designer decides to charge for that initial meeting 2. Specific project consultations on small-scale projects Whenever the scope of the project is unclear, making it difficult to use any other fee method When the project involves a great deal of consultation time with architects, contractors, and subcontractors 5. When the designer perceives that the client will have difficulty in making up his or her mind To cover travel time to the job site, to markets, or for other travel time When it is necessary to prepare working drawings and specification documents Whenever it is difficult to estimate the total amount of time needed to complete a job, for example, a law office in which each partner wishes to have his or her office designed in a very individual manner

Know the order process- proposal, invoice, purchase order, acknowledgement.

Go to a vendor and you talk with a salesperson and develop a relationship. You find a sofa you like and the salesperson will send a memo, a written proposal of the sofa. I figure out the labor to make the sofa, the finishes, the fabric (COM), what throw pillows I want and with what fabric. You plug this information into the studio software as 001, not 1. So, we have received a memo from the sofa company that contains the net price and how much fabric you need to cover the sofa. I have chosen a sofa and pillow fabrics from Holly Hunt and enter all of the information into the accounting software. Afterwards, you create a proposal with this information and send it to my client. This outlines the sofa and asks for a 50% deposit on the sofa because the manufacturer your buying from typically requires this before placing the order. Go to your fabric company and see if they have the amount of fabric you need in stock. Then you will receive a CFA from the fabric company which will be sent to the sofa manufacturer. The fabric company will require the entire payment, which will be on a proposal that will be sent to the client. The client will hopefully approve the sofa and the fabrics and add their signature with the 50% deposit on the sofa and 100% deposit on the fabrics. This is the go-ahead to place the orders. Then we create a purchase order (P.O) and send this to the vendors with what we are going to buy and where it will be shipped. For instance, the fabric will be sent to the sofa vendor, then the sofa vendor will be sent to the client's address. All of these documents are important, but then can get lengthy. So, including images of the furniture and fabrics is recommended for easy tracking and access. Back to the proposals, sometimes they include only the sofa, and sometimes they include everything with the sofa, the fabric, pillows, etc. and this is depending on a variety of reasons. Then, there is an acknowledgement that is sent from the vendor to the designer, which will then be sent to the client. This is important to double and triple check before the order is in production. When the order is in process, bespoke will send you an invoice which is the bill. A final invoice includes the final balance, the freight costs, and the sales tax which is sent to the client. The client will then send you a balance which will then be sent to the vendor to complete your payments to the vendor. The real stress is when you see the final revelation of the sofa you have customized because you need to make sure that everything is to your specifications. Accounts receivable

IIDA

INTERNATIONALINTERIOR DESIGN ASSOCIATIONThe IIDA " works to advance the value of the interior design and its practitioners as well as to cultivate leadership within the profession. " 3 The IIDA has approximately 13,000 members in 31 chapters around the world, working in all areas of residential and commercial interior design. Members practice in 10 specialty practice forums that help provide specialized information.

retail method fee

In the retail method , the design firm charges the client the retail price suggested by the manufacturer or supplier. If the manufacturer does not provide a suggested retail price, then the design firm marks up the merchandise from the net or cost price to achieve the retail price. Because both the suggested retail price and the markup percentage commonly used are 100 percent, the retail method provides a high gross profit margin for the firm. Although the most common markup is 100 percent, when selling to the consumer the markup can be higher. Residential design firms that are not retail stores sometimes use the retail method instead of cost plus a markup. Of course, retail furniture and merchandise stores use the retail method when selling directly to the consumer. In concept, the markup amount of at least 100 percent is sufficient to cover all direct and overhead expenses and provide a profit margin. There are some key issues when using the retail method: • • • It might not be suitable when a great deal of planning, drafting, specification writing, or supervision work is required. There is no guarantee that the client will purchase merchandise from the designer, which means that the designer will not be fully compensated for time spent working on the project. The retail method is used less often today because designers have become more willing to quote a design fee for services. Clients are becoming accustomed to the concept of paying for the professional services that an interior designer can offer, and thus are willing to pay the separate design fees. In addition, clients are far more willing to shop around for a good price on both products and services. This has led many designers to use a method for generating revenue other than the retail method.

IDLNY

Interior Design Legislation New York. Founded in 1984, IDLNY is the coalition for New York State interior designers. Our mission is to inform and educate the New York legislative and regulatory bodies, interior designers and consumers about the issues facing the interior design profession. IDLNY also continually monitors legislation that could affect the practice of interior design and serves as a representative coalition for this process.

difference between decorator and inteiror designer

Interior designer responsible for protecting health, safety, welfare of public. They have skills, education, decorator doesn't necessarily have and decorator

Programming Phase

Interview client to determine user needs and goals. Evaluate existing job site or review any drawings for new construction. Inventory and evaluate existing furniture that might be used in the project. Obtain scaled floor plans of the project space from the client (the architect or landlord). Measure job site to obtain necessary dimensions of site. Determine style, color, etc. preferences. Meet with landlord (if needed) concerning building standards and regulations. Ascertain potential building code, life safety code, and barrier-free regulations as might affect the project. Evaluate special needs such as sustainability, functional restrictions, and aging in place. Develop project schedule. Develop project budget. Coordinate (if needed) with appropriate consultants. Determine feasibility of meeting the client ' s requirements. Determine and inform the client of any restraints that will affect the feasibility of the project. Prepare final design program.

size and complexity fees

It is easy to understand that the larger and more complex the project is, the more time the designer will have to spend on the project. Complexity is a project-specific and often arbitrary issue. For example, certainly the interior design of a hospital is complex, but so too can be the design of a large residence with multiple finish treatments and custom cabinets, or the design of a multilevel condominium in a high-rise. In contrast, there are some projects that are large in terms of square footage but do not require a lot of unique designs, such as a hotel. The fee method to use depends on all the factors just discussed, as well as many others that are particular to the design firm. The owner must consider competition, the desire to do a particular project, the design firm ' s cash-flow

LEED

Leadership in Energy and Environmental Design (LEED ® ). LEED ® certifications are administered by the U.S. Green Building Council for those designers interested in and dedicated to sustainable design. Several certifications are available for interior designers, based on specialty: LEED-AP ID + C, for interior design of commercial spaces; LEED-AP BD + C, for building design and construction; LEED AP Homes, for designers involved in the design of green homes; and LEED Green Associate, for those interested in green building practices but engaged in a nontechnical field. Other LEED-AP certifications exist for areas less related to interiors. U.S. Green Building Council (USGBC) . This organization represents designers and others in the built-environment industry who design and promote buildings that are environmentally healthy. They administer the examinations for LEED ® certification for architects and interior designers in commercial and residential design.

change order

Making changes in a job after the contract is let (awarded) requires a change order. Change orders are documents that describe any modification in construction projects or interiors furnishing projects after the contract has been awarded. Change orders usually result in higher prices for the project, because something extra had to be done that was not called for in the original drawings and specifications.

fixed fee

Many designers and their clients have become increasingly satisfied with the fixed-fee method of compensation for interior design services. The fixed-fee method , also called the flat-fee , lump-sum , or stipulated-sum method, requires the interior designer to calculate a fee that will cover all the work and expenses required in the project scope of services, knowing that the fee cannot be increased beyond the fixed amount. It is common to add a reasonable additional amount to cover contingencies. The estimated fee is usually charged to the client whether the amount of time estimated is correct or not. This fee method appeals to clients who are most concerned about the bottom line. Designers who wish to use this fee method should have a database of previous projects that will help them determine the approximate average times and expenses needed to execute various kinds of projects. This fee method is not recommended for the inexperienced designer, as she or he will not have a good idea or history as to how long it will take to complete projects. The fixed-fee amount must be carefully considered. If the firm ' s owner has estimated badly and the time involved in completing a project exceeds the estimated fee, the firm cannot be compensated for the extra time. If the firm has estimated too high and the project does not require the full amount of estimated time, the firm is not obligated to refund any of the fee to the client. Of course, it is improper to overinflate the fixed fee as a way of seeking to obtain a huge profit at the client ' s expense. The fixed fee includes charges for all services and expenses other than those that the firm charges as reimbursable expenses. To use this method, it is important for you to have a thorough understanding of the services that must be performed. The client ' s budget also is critical, as an unclear budget or a very low budget means that the designer will need more time to research sources for products and potentially will have to do more revision to the plans. You must also have a feeling for the client ' s decision-making ability, to predict if the client will be difficult or easy to work with. Problems with this fee method can arise if the client does not understand the time element so that all phases of the project can be satisfactorily accomplished within the fee estimate. The fixed-fee method, which can be used for both residential and commercial projects, is a satisfactory method of charging fees when: 1. The scope of work for the project is easy to determine and not expected to change. 2. The amount of supervision on the job site is limited or can easily be controlled by the designer. 3. It is easy to determine the time and requirements of the project. 4. The designer has a significant amount of experience with the type of project and scope of services required so that the fee estimate is clear-cutservices required so that the fee estimate is clear-cut 5. The client is not purchasing goods from the designer. This allows the designer to utilize goods that he or she might not normally use, as the designer is not selling the goods. For the client, this may mean that the goods specified may be at a lower cost than those the designer usually sells. 6. Whenever a large amount of the same item is to be purchased. This is often the case for projects such as restaurants and office complexes, in which standardized products are specified; little additional time is required for such projects after the final product selections are made.

Illegal questions in interviews

Note that the job application cannot ask for information that is considered illegal, such as marital status and age These questions relate, but are not limited, to age, sex, religion, marital status, parental status, sexual preference, and ethnic origin. For example, the employer cannot directly ask you how old you are, your date of birth, your religion, or your native tongue. There are ways in which certain normally illegal questions can be asked so as to make them permissible. This is especially true if the question has a direct bearing on an individual ' s ability to perform the job. It is legal for an employer to ask something like, " Are you between the ages of 23 and 50? " or " Are you a citizen of this country

Contract Documents

Prepare working drawings and schedules for the construction and/or installation of the space. Prepare written specifications to accompany working drawings, schedules, and furniture, furnishings, and equipment. Prepare furniture and equipment installation drawings. Obtain approvals and permits from jurisdictional agencies. Provide or assist client with the preparation of bid documents. Qualify vendors, suppliers, and subcontractors. Assist client in obtaining competitive bids for all phases of the project. Provide guidance in the selection of necessary contractors. Assist client with owner-contractor contacts. Coordinate with project stakeholders such as architect and contractors.

the 5 phases of Project management and what happens in each phase

Programming Phase Schematic Design Phase Design Development Phase Contract Document Phase Contract Administration Phase

residential project fees

Residential projects . Residential interior designers tend to earn the majority of their revenue from selling merchandise, rather than fees only. Critical to this is ensuring that the expenses of operating the business have been considered in the determination of the pricing method used and the pricing itself. Sometimes a separate fee is charged for design consultation. There are, of course, residential designers who do not sell furniture and other furnishings at all and charge clients based on fees for services.

what fee? scope of services

Scope of services . The scope of services has the most impact on what method to use and the amount of the fee that will be negotiated. The scope affects the amount of time and work required and even the skill level of the designers. More can go wrong with a complex project that requires a large number of services. Thus, contingency planning in the selection of fee methods and amounts is necessary for a large, complex project.

Construction of silk drapery

Silk should be lined with cotton and interlined with a flannel.

Sales tax New York City. 0 nyc tax combined state and local tax and, sale tax for time (specific in NY state on iteiro design dservices, only design tax ) Sales tax for time/consultation NYC.

Tax Only the end-user pays the sales tax If a designer is buying a fabric for a sofa, the client is the end-user. When a designer is buying fabric from kravet, we submit a resale certificate saying we will resell this and we are not the user. States and local governments charge sales tax, not federal gov't Varies and depends where you are NYC- city tax and state tax If you buy a piece of clothing, it will include the sales tax which includes the city and state tax. NJ does not have sales tax The sales tax depending on where the job is located If you're a NYC designer with a job in CT, you buy tile from a NYC firm and you are selling the tile to CT. NY has not jurisdiction to this sale so there is no NY sales tax If you're buying from Kravet to send to CT and Kravet has a location in CT, the designer only has a certificate from NYC. When the designer sells the fabric to CT, Kravet will collect the tax from the designer. The designer is responsible for the sales tax collection. Sales tax New York City. 0 nyc tax combined state and local tax and, sale tax for time (specific in NY state on iteiro design dservices, only design tax )

NYDC

The New York Design Center is the industry's premier resource for fine furnishings. Housing over 100 showrooms, including 33,000 square feet of antiques located on the 10th floor. 200 Lex serves as New York's destination for designers across the US and beyond. The New York Design Center welcomes consumers, inviting them to tour the showrooms.

the clients experience fees

The client ' s experience with an interior designer . Clients who have had no previous experience working with an interior designer require more of the designer ' s time and patience, and more education and " handholding. " These clients ask more questions, want more choices, and deliberate more before they make decisions. They also change their minds more often and generally challenge the interior designer more frequently. The client who has previously worked with a designer will, for the most part, be just the opposite. Projects generally take longer to complete for the client who has not previously worked with a designer.

desginers experience fees

The designer ' s experience . The less experience the interior designer has with a particular type of project, the longer (logically) it will take to execute the project. In this case, an hourly fee might be fair to the designer but not the client. There is a learning curve with every project. Clients do not like having to teach the designer about their type of project. They do not like to pay for that learning curve. Clients like to hire experts.

functional resume

The functional resumé emphasizes qualifications and skills, rather than the order in which they were obtained. Emphasizing overall qualifications is intended to quickly interest the employer in your qualifications and possibly overlook a spotty work record.

hourly fee

The hourly fee is very common. Clients are familiar with this method, as many other professionals (such as accountants, attorneys, and other service providers) charge by the hour. Quite simply, the service provider is paid an amount for each hour or part of an hour that work is done on behalf of the client. The interior designer needs to determine an hourly rate, as many other fee methods are based on this figure. Hourly rates vary considerably around the country and even within the same city. Those in residential or commercial practice often use the hourly rate. It is a very satisfactory way of ensuring that the firm will be compensated for all the work it does for a client. Not all clients will quickly agree to be charged an hourly rate, however (see Table 6-4). - Many clients are reluctant to agree to an hourly fee, since the meter, metaphorically speaking, is always running. - The longer the designer works on the project, the higher the charges will be. The client is often afraid to allow the designer this much freedom in setting a fee schedule based solely on time. Clients are often afraid that the designer will take extra time so that he or she can increase the fee. Of course, this would be an unethical thing to do. Many firms get around this objection by setting a not-to-exceed limit in the contract. It can be argued that this is another way of establishing a fixed fee, as the designer cannot charge more than the not-to-exceed limit. - Hourly billing rates are commonly charged in three ways: - 1. Based on the professional level of the employees, with principals and senior designers charged at a higher rate than less experienced designers. - 2. An hourly billing rate as an average of all the rates of the various levels of design staff. A disadvantage of this method is that senior designers will not be charged at a rate that is commensurate with experience, while less experienced designers are charged at a rate that exceeds their expertise level. - 3. By the kind of service rather than the personnel used. Generally using the project process as a guide, services are grouped based on criteria such as design skill needed to complete the service. Common groupings are: design (or creative) service (the highest level of service); documentation and drafting, which require some design skill and knowledge; and supervision and/or miscellaneous time, which would be the lowest level of service. A drawback of this method is that commensurate fees will not be charged for experienced designers, especially for design/creative services. An hourly rate can also be calculated to create a daily rate . A daily rate might be used for travel to market with the client, out-of-town meetings with the architect and/or client, or any other services that can be accomplished in 99

IDEC

The organization that approves CEU credit courses for interior designers is the Interior Design Continuing Education Council (IDCEC), an organization that coordinates professional education specifically for ASID, IIDA, IDC, and some other professional organizations in design. Non-IDCEC approved courses might not be acceptable to state regulatory agencies or professional organizations to meet continuing education requirements. -The Interior Design Educators Council (IDEC) is dedicated to the advancement of education and research in interior design. IDEC fosters exchange of information, improvement of educational standards and development of the body of knowledge relative to the quality of life and human performance in the interior environment. IDEC concentrates on the establishment and strengthening of lines of communication among educators, practitioners, educational institutions and other organizations concerned with interior design education.

discounting or percentage off retail fee

The percentage off retail method is another common method of fee setting that is directly related to the purchase of goods. Stores and showrooms that have an inventory of merchandise offer those items at a percentage off retail in order to gain a competitive edge over stores that are strictly retail priced. They might do this because the firm expects that the volume of merchandise purchased by the client will offset the design services costs. Office furnishings dealers frequently use this method. In this method, the design firm reduces the selling price of the merchandise by some percentage off the suggested retail price, rather than marking up merchandise from cost. Care must be taken when the design firm determines what that discount will be, as the resulting difference between the selling price and the net price (the gross margin) must allow for a profit and cover overhead costs. The larger the discount, the smaller the gross profit margin will be, so less will remain to pay expenses and maintain profits. Office furnishings dealers have found that this method does not always cover the cost of design services. This has become even more true recently because of the rash of deep discounting on many projects and the highly competitive market in office furnishings. Because of these deep discounts (discussed in Chapter 8), dealers have been forced to charge design fees, such as an hourly fee, to make sure the designer ' s time is covered and compensated.

what is kept in a project file

The project file should contain the following categories of information: meeting notes, correspondence, samples, and floor plans. Documents typically included in a project file: Correspondence Signed design contract, Memos, and transmittals from vendors and suppliers Meeting minutes and subsequent replies from client and vendors Other correspondence related to the project Project Programming Documents Client interview questionnaires Job-site analysis Space-programming questionnaires Employee work area summaries Existing furniture inventories Project Specifications and Budgets Furniture specification sheets Estimates for architectural finishes and window treatments Other budgeting forms Samples and approved cuttings Drawings Preliminary plans drawn from site measures Preliminary sketches, especially those approved by the client Contract documents Shop drawings As-built documents Bidding and Procurement Bid specifications Purchase orders Acknowledgments Invoices Shipping documents Change orders Punch lists Site inspection reports Miscellaneous Warranties Maintenance documentation Post occupancy evaluations Internal post-project documentation Anything else pertinent to the project for future reference

Purchase Order

The purchase order , often referred to as a PO, is one of the most important forms of paperwork used in the contract administration phase. The purchase order is used to initiate orders for merchandise and services from manufacturers, tradespeople and craftspeople, and other vendors. Interior designers also use purchase orders to initiate orders for supplies or other items used by the design firm itself. Practically nothing should be purchased for clients without a purchase order . The purchase order is another form of contract. It must be designed so that the vendor or supplier can easily find all the information needed to complete the order quickly and correctly. This information is central to establishing a contract for the sale of goods, as discussed in Chapter 9. The format must be standardized and must complement the recording methods of the remaining paperwork and the firm ' s accounting systems. The purposes of purchase orders are highlighted in Table 13-2. All firms should have a policy prohibiting telephone orders to vendors. An order placed via telephone should not substitute for proper paperwork. Telephone orders are always problematic. In the first place, many manufacturers do not honor telephone orders until a follow-up written order is received TABLE 13-2. Purposes of a purchase order 1. Serves as the means of obtaining the needed goods and services in the client ' s interests. 2. Acts as a record of all outstanding orders. Needed for income tax calculations and loan applications. 3. Used to verify information on acknowledgments to be sure correct items were ordered. 4. Acts as a control mechanism for billing clients. 5. Can be used for checking the correct pricing of various suppliers. 6. Used to purchase items for the operations of the design fi rm. 7. Helps maintain accurate records when a hard copy is made of a digital purchase order.

acknowledgement

When a manufacturer receives a purchase order, it sends paperwork to the interior designer called an acknowledgment. Acknowledgments or confirmations (sometimes called order updates) not only confirm receipt of the order, they mirror back the items ordered by the designer to demonstrate understanding of the order (see Figure 13-5). Depending on the supplier and whether the purchase order was mailed, faxed, or e-mailed, the designer receives an acknowledgment anywhere from a few hours to 10 days later. Although acknowledgments vary in format to suit the needs of specific suppliers, it is likely that the following kinds of information will be provided on them: 1. An order number assigned by the supplier. 2. The design firm ' s purchase order number. 3. The date on which the acknowledgment was prepared. 4. A scheduled shipping date. The order will be shipped sometime during that week, not necessarily on that day. 5. What the expected shipping situation will be (e.g., " Collect — Roadway " means that the design firm will have to pay the shipping charges and that the merchandise will come from the Roadway shipping company). 6. Notations as to who ordered the merchandise, the billing address, and the shipping address. 7. The " tag for " instructions. 8. A restatement of quantity, catalog number, description, and pricing information. Many manufacturers put the net price on the acknowledgment. However, others still quote retail prices. If the retail price is quoted, the acknowledgment will often also quote the discount that the designer will receive for that order. 9. Other information related to billing and shipping. The supplier may send the design firm an original copy, a fax, or possibly an e-mail version of the acknowledgment. Each acknowledgment must be checked against the purchase order. E-mailed acknowledgments should be downloaded into the designer ' s order system, or hard copies should be printed so that the designer has a record of the transaction. The acknowledgment should be attached to the corresponding purchase order in the open purchase order file. A copy may be added to the active project file for reference purposes. The acknowledgment information must be compared against the purchase order upon receipt of the acknowledgment, so that any discrepancies between the two forms can be found and reconciled. There is generally very little time for the designer or the client to make changes in an order. Major suppliers often give only 10 days and certainly no more than 3 weeks " from receipt of order " to make any changes in the order. Any discrepancies — especially those in quantity, catalog number, description, or price — should be discussed with the manufacturer immediately. Delays in calling attention to errors often result in the design firm ' s receiving the wrong merchandise. Discrepancies regarding the expected shipping date or other shipping information also should be checked to see how they may affect project completion. Someone must be responsible for checking all outstanding orders. In smaller design firms, the person responsible for checking the acknowledgments is the designer, an assistant, or the bookkeeper. Checking

Types of Resume

chronological, functional, combination.

COL

customers own leather

COM

customers own material

Different methods of charging/ fee structure

flat fee, hourly/per diem, percentage off retail