All You Need to Know About Drafting Design Agreements

Contracts. Not exactly the sexiest part of running a design business, but absolutely one of the most important. In this episode of the Design Dash Podcast, co-hosts Melissa Grove and Laura Umansky break down everything designers need to know about crafting solid design agreements. From what to include to what clients typically push back on to real-life lessons learned the hard way—this episode is packed with practical advice. Let’s get into it.

Why Every Designer Needs a Contract

A design agreement (or contract, if you prefer the less elegant term) might seem like a formality, but it’s actually a must-have for protecting both you and your clients. It keeps expectations clear, lays out professional boundaries, and ensures everyone is on the same page before work begins. It’s also your best line of defense if things don’t go as planned (which happens more often than we’d like to admit).

Proposal vs. Contract: What’s the Difference?

Not all documents are created equal. Your proposal is a sales document—it’s polished, exciting, and designed to make clients say, “Yes, I want to work with you!” It outlines the scope of work, estimated timeline, and fees, but it doesn’t get into the nitty-gritty legal details.

Your design agreement, on the other hand, is where all the legal protection lives. It covers liabilities, payments, responsibilities, and expectations in black and white. The proposal and contract should complement each other—think of the proposal as the warm, welcoming front door and the contract as the sturdy lock that keeps everything secure.

What to Include in Your Design Agreement

Your design agreement needs to be thorough enough to protect you, but concise enough that it doesn’t scare off clients. This is what we recommend that you include in your design agreements.

Client and Project Details

Clearly outline all necessary client information, including names, addresses, and project scope. Specifying details about the project upfront helps prevent miscommunication and ensures that both parties are aligned on expectations.

Billing and Fees

Define whether you charge hourly or a flat fee, and include details on retainers and additional costs. Be explicit about when payments are due, what happens in case of late payments, and whether rates may be adjusted over time, particularly for long-term projects.

Photography Rights

Indicate whether you plan to use images of the project for your portfolio, website, or marketing materials. Some clients, particularly high-profile ones, may request confidentiality, so it’s wise to include a clause giving them the option to opt out.

Procurement and Installation Terms

If you’re handling the procurement of furniture or decor, specify how deposits and payments will be made. Some designers require clients to purchase everything through them, while others allow direct client purchases—clarifying this upfront prevents confusion.

Force Majeure Clause

Protect your business from liability by outlining what happens in the event of unforeseen circumstances such as natural disasters, pandemics, or supply chain disruptions. This clause ensures that you aren’t held accountable for delays beyond your control.

Termination Clause

Detail how either party can exit the agreement if necessary. Whether it’s due to creative differences, unforeseen complications, or failure to meet financial obligations, having a clear termination process in place helps keep things professional and legally sound.

Client Pushback: What to Watch For

Most clients sign design agreements without issue, but occasionally, you’ll run into some resistance.

Indemnification Clauses

Some clients push back on these, but they’re standard in protecting your business from liability. If they insist on striking this, consult your lawyer before making changes.

Photography Rights

Privacy-conscious or high-profile clients may ask to remove this. Offering an opt-out option can help smooth over concerns.

“I Don’t Sign Contracts” Clients

Major red flag. If a client refuses to sign any agreement, consider it a dealbreaker. Clients who resist contracts often cause the most problems later. If they don’t respect legal protections, they likely won’t respect your time and expertise.

Your Contract Will Evolve Over Time

Your first contract won’t be perfect—and that’s okay. As your business grows, you’ll learn what works and what doesn’t. Maybe you had a nightmare client who ghosted after three months of unpaid invoices? Time to tighten up your payment terms.

Maybe a builder kept dragging you onto the job site every day without paying for extra site visits? Add a minimum construction administration clause. Keep refining your contract based on real-world experience; this is a living document—not a lifelong commitment to your first draft.

Get Legal Help (Don’t Rely on AI for This One!)

While resources like AIA (American Institute of Architects) offer solid contract templates, the best investment you can make is hiring a lawyer to review and tailor your design agreement. AI can do a lot of things, but drafting a legally sound contract that protects your specific business? That’s a job for a real human attorney.

Listen to the Full DesignDash Podcast Episode

This contract is a necessary safeguard for your business, your time, and your sanity. It protects you, it protects your clients, and (ideally) you’ll never have to look at it again after signing. But if you do? You’ll be glad you have it. Listen to the full podcast episode for more tips from Laura and Melissa.

Join the Conversation

The Design Dash community is all about sharing knowledge and making the business of design less overwhelming. If you want to talk contracts, proposals, or just vent about a wild experience, join our new community to jump into the conversation.