Table of Contents

Preface xv


Acknowledgments xix


1. Interior Design as a Profession 1


Why Study Professional Practice? 2


Defining the Profession 3


What Is a Profession? 4


Professional Responsibility in a Changing World 4


Historical Overview 6


Interior Design Divisions 10


Interior Design Value 11


The Business of Interior Design 12


2. Professional Advancement 19


Educational Preparation 20


Internships 22


Lifelong Learning 24


NCIDQ Examination 25


Licensing and Registration 28


Professional Associations 31


Social Responsibility 37


3. Ethics and Professional Conduct 43


Ethical Standards 44


Ethics in the Business Environment 45


Professional Conduct 49


Disciplinary Procedures 55


4. Legal Responsibilities 59


The Legal Environment of Interior Design Practice 60


Criminal versus Tort Law 63


Negligence 64


Intentional Torts 66


Intellectual Property—Copyright 68


Code Compliance 72


5. Where Do Designers Work? 77


How Do Designers Work? 77


Global Design Work 79


Types of Work Environments 81


Expectations 85


6. Project Compensation and Design Fees 89


Calculating the Billing Rate 90


Which Compensation Method? 93


Estimating Design Fees 95


Indirect Job Costs 96


Methods for Setting Design Fees 97


7. Preparing Design Contracts 109


Definition and Basic Elements of a Contract 110


Letter of Agreement or Contract? 115


Proposals versus Contracts 116


Contract Form and the Statute of Frauds 117


Developing the Design Contract 119


Content Formalities 122


Interior Design Contracts: Content and Form 123


Performance and Breach 146


Termination by Agreement 149


Avoiding Contract Disputes 149


8. Product Pricing 153


Catalog Pricing 154


Pricing Terms 155


Discounts 156


Selling Prices 160


Deposits, Down Payments, and Retainers 163


Freight and FOB 166


Delivery and Installation Charges 167


Sales and Use Taxes 168


9. The Selling of Goods: The Uniform Commercial Code and Warranties 173


Historic Overview of the UCC 174


UCC Definitions 175


The Buyer’s Rights and Obligations 176


The Seller’s Rights and Obligations 178


Statute of Frauds 179


The Sales Contract 181


Electronic Agreements and Signatures 186


Sales on Approval 189


Title 189


Risk 190


Warranties and Product Liability 191


10. Trade Sources 201


Manufacturers 202


Sales Representatives 203


Marts, Showrooms, and Market Centers 204


Local Showrooms 205


Retail Specialty Stores 206


Manufacturer’s Dealers 206


Internet Sourcing 206


Tradespeople and Craftspeople 207


Construction Contractors 208


Selecting Trade Sources 209


11. The Project Management Process 215


What Is Project Management? 216


The Role of the Designer/Specifier 219


Bringing Value to Clients through Design 221


Phases of an Interior Design Project 222


Project Delivery Methods 231


Stakeholders 233


Selecting Project Teams 235


Plan Review Boards 236


Project Schedules 238


Project Budgeting 240


Managing and Recording Your Time 243


Project Files or Job Books 249


Building Information Modeling (BIM) 253


Value Engineering 254


12. Contract Documents and Specifications 257


Contract Documents 258


Specifications 262


Specifications Organization 267


Sustainable Product Specifications 269


Construction Agreement 270


Competitive Bidding 271


Modifications 280


Submittals 283


13. Contract Administration: Construction and Order Processing 287


Contract Administration: Construction 288


Contract Administration: Procurement and Order Processing 290


Shipping and Freight 306


Expediting 307


14. Contract Administration: Delivery and Project Closeout 311


Delivery and Installation 312


Project Closeout 316


Postoccupancy and Follow-Up 319


15. Creating and Managing an Interior Design Practice 325


Understanding Motivations and Risks of Business Ownership 326


Advantages and Disadvantages of Business Ownership 329


Functions of Management 331


Management Styles 334


Working Alone 335


The Stages of a Business 336


Buying an Existing Business 338


16. Advice and Counsel 343


Attorney 344


Accountant 345


Banker 346


Sources of Capital 347


Establishing Business Credit 349


Insurance 350


Technical Consultants 355


Sources of Information and Assistance 355


17. Preparing the Business Plan 361


The Business Plan 362


Start-Up Costs 366


Setting Up the Office 367


18. Business Formations 377


Sole Proprietorship 378


Partnerships 380


Limited Liability Company 383


Corporations 384


Joint Venture 389


19. Business Legal Filings and Licenses 393


Business Legal Filings 394


Licenses 397


Income Tax Basics 399


20. Strategic Planning: Designing the Future 405


The Importance of Planning 406


Strategic Planning Basics 407


Mission Statements 408


Business Analysis 409


Business Goals, Objectives, Strategies, and Tactics 412


Budgeting 412


Measuring Performance 414


Benchmarking 415


21. Money Management 419


Accounting Methods: Accrual versus Cash Accounting 420


Accounting Records and Systems 422


Basic Financial Reports: Income Statement, Balance Sheet, and Statement of Cash Flows 426


Managing Your Finances 434


Controlling Overhead 444


Computer Applications for Accounting 445


22. Fundamentals of Marketing 449


Branding 450


Target Marketing 452


Establishing a Niche 454


The Four Ps of Marketing 455


Marketing Analysis 457


Marketing Plan 458


23. Promotional Basics 463


Promotion 464


Public Relations 465


Publicity 466


Press Releases 467


Advertising 469


Internet and Social Media Marketing 470


Referrals 477


Networking 478


24. Promotional Tools and Methods 483


The Graphic Image and Stationery 484


Photo Portfolio 487


Brochures 488


Competitions 488


Direct Mail 490


Publication 491


Proposals as a Marketing Tool 493


25. Selling Strategies 501


What Is Selling? 502


Selling Services versus Products 503


The Buyer Decision-Making Process 504


Buyer Demographics 505


Building Client Relationships 507


Selling Techniques 508


Negotiating 510


The Selling Process 512


26. Design Presentations 519


Presentations 520


The Initial Client Interview 521


Project Presentations 522


Closing Techniques 526


Overcoming Objections 528


Follow-Up 530


Additional Guidelines for Making Presentations 530


Good Impressions 531


27. Employee Management 537


The Agency Relationship 538


Job Classifications 541


Job Descriptions 545


Employment at Will 547


Employment Contracts 549


Independent Contractors 553


Compensation and Fringe Benefits 555


The Performance Evaluation 560


The Employee Handbook 561


Mentoring 563


Sexual Harassment 564


Federal Laws Regulating Employment 565


28. Goals and Career Options 571


A Personal Mission Statement 572


Personal and Professional Goals 572


Career Decisions 576


Design Career Specialties 577


29. The Job Search 587


The Search Is On 588


Resumés 591


Resumé Format 597


The Cover Letter 601


Portfolios 606


Digital Job Search Strategies 609


30. On the Job 619


How Employers Review Resumés and Cover Letters 620


The Job Interview 621


Typical Interview Questions 626


Illegal Questions 630


Follow-Up 630


Your First Job 631


On-the-Job Strategies 635


Making a Career Change 635


Appendix 641


Glossary 643


General References 665


Index 695

About the Author

CHRISTINE M. PIOTROWSKI, FASID, IIDA, currently based in Phoenix, Arizona, provides consulting services to interior designers on business practices. She is a former professor of interior design at Northern Arizona University and has more than twenty-five years of commercial and residential design experience. She has won the ASID/Polsky Prize twice and received honorable mention once. Her books include Becoming an Interior Designer, Designing Commercial Interiors, and Problem Solving and Critical Thinking for Designers.