FEATURED ON THIS EPISODE:

JOIN THE WAIT LIST FOR MY REVAMPED COURSE INTERIOR DESIGNER’S GUIDE TO CONSTRUCTION MANAGEMENT

WHAT YOU WILL LEARN IN THIS EPISODE:

WHY YOU NEED TO SPECIFY CLEARLY IN YOUR CONTRACTS AND MEETINGS WITH CLIENTS WHAT YOU WILL AND WON’T BE DOING

WHY YOU MUST SET EXPECTATIONS EARLY

WITHOUT A CLEARLY DEFINED ROLE, YOUR PRICING WILL NOT COVER YOUR HOURS

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I hear from designers all the time, and what I’m hearing is starting to break into three different types of offers. They all include design – we can’t build something if we don’t design it. 

The first category tends to be design and specification only. 

The second is design and consulting. 

The third is design and full management. 

Now, let me be clear, and I really want to be clear on this, there is nothing wrong with any of these services. It’s whatever you are comfortable offering at whatever place you are in your career or for a specific project. 

The problem comes when you don’t define, specifically define, which one you’re doing, you don’t price for it properly, and you don’t explain it to your client. That’s when you end up doing way more than you’re getting paid for. That leads to resentment during the entire process. 

Design and specification

This is a fairly common service and seems very straightforward. There’s a start, a middle, and an end. When you hand over those specifications, that’s defined as the end. Right? Because you’re hired to develop the design and then provide a full spec package. Whether you do it independently whether you do with the client, all of that varies, from designer and client, but you’re picking finishes, fixtures, lighting, tile, plumbing, the whole thing. Then, after it’s approved by the client, you hand it off to the contractor to implement. 

So in theory, you’re done.

But that’s not reality. 

The reality is, you will be pulled back in. We don’t know what for. Maybe that tile you chose six months ago is now discontinued. Maybe the light fixture is backordered. Now you may be reselecting, you may be resolving, answering questions, or all of the above. And if you didn’t build that time into your fee, you’re either not billing at all or severely underbilling.  

Plus, many designers miss out on the markup opportunity, which I talk about a lot.

What tends to happen is the homeowner says, “Well, you specified it, you need to see it through to fruition,” and there is some rationale behind it. If you chose a tile and now it’s discontinued, yeah, I would think you would see that through. So what I hear is designers agreeing with that and then deciding to respecify and not charge the client. But then that’s time, therefore money, out of your pocket for something you had no control over. 

So, it needs to be completely specified in your contract and in your meetings with the clients what you will and won’t be doing. That’s your clause. So that when that phone rings, you’re not annoyed, panicked or filled with dread because that profit you just made starts getting eaten away by these ‘free’ hours. It’s just not sustainable. 

Taking that moment to understand what your true role is, if you are hired to design and specify, to cover yourself from start to finish. 

Design and consulting

This one tends to get very misunderstood. I understand states have certain regulations as far as what you can call yourself – a project manager, a supervisor, an implementor, and I get that.

So I think a lot of designers use the word consulting because it covers enough of what we do, but isn’t a trigger for some sort of legality in each state. 

The problem is that you are staying involved. You’re doing the design and the selections, and by offering consultations, you are staying involved throughout the project. But here’s the problem, the client, they don’t know what limited means. That’s a subjective word and up for waayyyy to big an interpretation. 

So if you don’t clearly explain the difference between consulting and full management and your contractor doesn’t either, chances are your client will be thinking you’re managing the project – and you’re thinking you’re just consulting.

It is a comprehensive work and therefore needs to be priced that way.

Another part of this is that designers are often using formulas that really don’t account for the work. Pricing is based on the hours it will take to manage the entire project. It is not, and it should not be viewed with the lens of something that can be generated with a formula. 

You also need to set expectations early.

I mean very early, with your client. It should be in your initial conversations, it should be in your contract what your role will be, and most importantly, what your role won’t be, and how you will be billing for this role. And then you’re going to have to reinforce this along the way. 

This way you won’t be stuck doing damage control. You will feel in charge and in control of not only the project but of your business and the income that it will generate with this one project. 

Consulting needs special attention when you are defining. It is very confusing to a client to say ‘I’m going to consult’ vs ‘I’m going to manage.’ 

I hope you understand from today’s conversation that without a clearly defined role, your pricing will not cover your hours, and likely be left frustrated, and you will be losing money on each and every project. 

There is a way to right that ship. You have the power to do it. And I am cheering you along the way.