Kitchen & Bath Business March/April 2023 - 20

INDUS TR Y
CHALLENGE S
Perfecting Your Contracts
What every designer needs to know to protect your business
IF YOU READ THE various industry outlook surveys,
some feel their business will expand, some
feel it will be fl at, and some feel business will be
seeing a contraction. No matter what the outcome
will be, it is more important than ever to
make sure your business is protected from downside
risk. Th e best way to protect your business is
with your contract or letter of agreement; always
think of this as a living document you can update
as often as necessary. Th is article covers the areas
you should review regularly.
GENERAL CONDITIONS AKA THE SCOPE OF WORK
Th ough these may seem like small details, they
can change the course of a project if there is any
misunderstanding about who is making decisions
and who has fi nancial responsibility for
those decisions. Same goes for communications.
If you have a client who likes to discuss the job
after 10 p.m. at night, you might want to create
some boundaries or adjust your availability. Decide
if you prefer phone, email, text or in person
- they each have advantages and disadvantages.
* Make sure your agreement lists full contact
information of all parties involved.
* Defi ne the areas included, a description of
services you will be providing, how meetings
will be conducted and who has fi nal approval
of all design-related components, including
fi nancial.
* Defi ne expectations regarding communications,
hours of business, what are considered
timely responses and who will handle the
communications.
Once you have these details delineated and
agreed upon, you can move to the next section,
which can have a major impact both positive
and negative on your business. Th is is where
you spell out the responsibilities of you and
your client.
TERMS & CONDITIONS
* Specify everything from delays, acts of God,
storage fees, cancellation conditions to warranty
issues for labor and materials.
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/ MARCH-APRIL 2023
DON'T SKIP THE SCHEDULE
Th e terms you include regarding timelines may be dictated by state and
local laws. Supply chain issues upended delivery expectations. Use caution
when stating specifi c dates.
* Defi ne how the design process works and when presentations will
be made.
* How long is the procurement process?
* What is the start and completion date?
* How long will it take until the space is useable (substantial completion)?
* What will you do if the project takes longer than expected?
* Detail how deliveries will be handled and where materials will be
stored.
* Describe how concealed work and existing conditions will be handled.
* Include your policy on children left at home during the workday, as
well as pets and house guests.
* State what type of access is needed for the jobsite and how you will
address additional work orders.
* Defi ne the chain of events if payment is not received.
" Think of some of the situations you
encountered over the last few months that
could have been resolved if you had included
them in your existing agreement. "
MATERIALS & SPECIFICATIONS
Th e saying that a picture is worth 1,000 words was never more appropriate
when it comes to your specifi cations. Both written descriptions and
images will help alleviate confusion or disagreement. When materials are
taking months to arrive, memories can become hazy. Be clear and concise;
these details are in the best interest of you and your client.
* Always include a detailed description of materials and fi nishes and
require a signature of approval on all specifi cations.
* Include disclaimers for variations in wood grain patterns and textures.
For natural materials such as natural stone, include variations in patterns,
colors and seam locations, if necessary.
* Can your client shop your specifi cations for the project such as lighting,
furniture and accessories?
* If something is discontinued while you are waiting for delivery, how
will you handle new selections and new costs, if any?
Kitchen & Bath Business March/April 2023

Table of Contents for the Digital Edition of Kitchen & Bath Business March/April 2023
