PROFESSIONAL PRACTICE FOR INTERIOR DESIGNERS

The leading guide to the business practice of the interior design profession, updated to reflect the latest trends

For nearly thirty years, Professional Practice for Interior Designers has been a must-have resource for aspiring designers and practicing professionals. This revised and updated Sixth Edition continues to offer authoritative guidance related to the business of the interior design profession—from the basics to the latest topics and tools essential for planning, building, and maintaining a successful commercial or residential interior design business.

Filled with business tips and best practices, illustrative scenarios, and other pedagogical tools, this revised edition contains new chapters on interior design in the global environment, building client relationships, and online marketing communications. The author also includes updated information on web and social media marketing, branding, and prospecting for global projects. Recommended by the NCIDQ for exam preparation, this Sixth Edition is an invaluable resource for early career designers or those studying to enter the profession. This important book:

• Contains three new chapters that focus on client relationships, marketing communications, and interior design in the global marketplace.
• Includes new or updated sections that reflect the recent trends related to social media, branding, sustainable design practice and more
• Offers invaluable pedagogical tools in every chapter, including chapter objectives and material relevant for the NCIDQ
• Instructors have access to an Instructor's Manual through the book's companion website

CHRISTINE M. PIOTROWSKI, FASID, IIDA, provides consulting services to interior designers on business practices. She is a former professor of interior design at Northern Arizona University and has over thirty-five years of commercial and residential design experience. She is a two-time winner of the ASID/Polsky Prize. She is the author of Becoming an Interior Designer; Designing Commercial Interiors; Problem Solving and Critical Thinking for Designers; and Professional Practice for Interior Designers, all from Wiley.

Preface xv

Acknowledgments xvii

Part 1 The Profession 1

1. Interior Design as a Profession 3

Why Study Professional Practice? 4

What is a Profession? 5

Defining the Profession 6

Professional and Social Responsibility 7

Historical Overview 8

Interior Design Value 10

The Business of Interior Design 13

2. Professional Advancement 19

Educational Preparation 20

Internships 22

Lifelong Learning 23

Professional Certification 24

Licensing and Registration 26

Professional Associations 28

3. Going Global 37

Global Design Work 38

Professional Practice in a Global Market 39

Cultural Sensitivity 43

International Etiquette 45

Part 2 Career Paths 49

4. Where Do Designers Work? 51

How Do Designers Work? 52

Types of Work Environments 53

Collaboration 57

Expectations 58

Your First Job 59

On‐the‐Job Strategies 62

Making a Career Change 62

5. Professional Options 67

A Personal Mission Statement 68

Personal and Professional Goals 69

Career Decisions 73

Design Career Specialties 74

6. The Job Search 85

The Search is On 86

Resumes 90

The Cover Letter 96

Portfolios 99

How Employers Review Resumes and Cover Letters 102

The Job Interview 103

Typical Interview Questions 107

Illegal Questions 109

Follow‐Up 110

Part 3 Professional Responsibility 115

7. Ethics and Professional Conduct 117

Ethical Standards 118

Ethics in the Business Environment 119

Professional Conduct 122

8. Legal Responsibilities 129

The Legal Environment of Interior Design Practice 130

Criminal Versus Tort Law 133

Negligence 134

Intentional Torts 136

Intellectual Property—Copyright 138

Code Compliance 143

Part 4 Defining the Project 147

9. Project Compensation and Design Fees 149

Calculating the Billing Rate 150

Which Compensation Method? 152

Estimating Design Fees 153

Indirect Job Costs 156

Methods for Setting Design Fees 157

10. Preparing Design Contracts 169

Definition and Basic Elements of a Contract 170

Letter of Agreement or Contract? 175

Proposals Versus Contracts 176

Contract Form and the Statute of Frauds 177

Developing the Design Contract 179

Content Formalities 182

Interior Design Contracts: Content and Form 183

Performance and Breach 199

Termination by Agreement 202

Avoiding Contract Disputes 202

11. Trade Sources 207

Internet Sourcing 208

Manufacturers 208

Sales Representatives 209

Marts, Showrooms, and Market Centers 210

Local Showrooms 212

Retail Specialty Stores 212

Manufacturer’s Dealers 212

Trades and Crafts Resources 213

Construction Contractors 214

Selecting Trade Sources 215

12. Product Pricing 221

Pricing 222

Pricing Terms 222

Discounts 224

Selling Prices 228

Deposits, Down Payments, and Retainers 231

Freight and FOB 233

Delivery and Installation Charges 234

Sales and Use Taxes 235

13. The Selling of Goods: The Uniform Commercial Code and Warranties 241

Historic Overview of the UCC 242

UCC Definitions 243

The Buyer’s Rights and Obligations 244

The Seller’s Rights and Obligations 245

Statute of Frauds 248

The Sales Contract 249

Electronic Agreements and Signatures 255

Sales on Approval 257

Title 258

Risk 258

Warranties and Product Liability 259

Part 5 Project Delivery 269

14. Building Client Relationships 271

Understanding Your Client 272

Buyer Demographics 274

The Buyer Decision‐Making Process 276

Creating Customer Loyalty 277

Managing Customer Expectations 278

Bringing Value to Clients Through Design 279

Negotiating 280

Confidentiality 282

Good Impressions 283

15. The Project Management Process 291

What is Project Management? 292

The Role of the Designer/specifier 295

Phases of an Interior Design Project 297

Stakeholders 307

Selecting Project Teams 309

Project Delivery Methods 310

Building Information Modeling (BIM) 312

Risk Management 313

Value Engineering 314

Plan Review Boards 315

Project Schedules 316

Project Budgeting 318

Managing and Recording Your Time 321

Project Files or Job Books 326

16. Contract Documents and Specifications 335

Contract Documents 336

Specifications 340

Specifications Organization 346

Sustainable Product Specifications 348

Construction Agreement 349

Competitive Bidding 350

Modifications 359

Submittals 362

17. Contract Administration: Construction and Order Processing 365

Contract Administration: Construction 366

Contract Administration: Procurement and Order Processing 368

Shipping and Freight 383

Expediting 384

18. Contract Administration: Delivery and Project Closeout 389

Delivery and Installation 390

Project Closeout 394

Postoccupancy and Follow‐Up 397

Part 6 Establishing an Interior Design Practice 403

19. Creating and Managing an Interior Design Practice 405

Motivations for Business Ownership 406

Understanding the Risks of Business Ownership 408

Advantages and Disadvantages of Business Ownership 410

Types of Practice Organizations 412

Working Alone 413

Buying an Existing Business 414

The Stages of a Business 416

Functions of Management 418

Management Styles 419

20. Advice and Counsel 423

Attorney 424

Accountant 425

Banker 426

Sources of Capital 427

Establishing Business Credit 429

Insurance 430

Technical Consultants 434

Sources of Information and Assistance 435

21. Preparing the Business Plan 441

The Business Plan 442

Start‐Up Costs 446

Setting up the Office 447

Green Office Management 455

22. Business Formations 459

Sole Proprietorship 460

Partnerships 463

Limited Liability Company (LLC) 466

Corporations 467

Joint Venture 472

23. Business Legal Filings and Licenses 477

Business Legal Filings 478

Naming Your Business 480

Licenses 482

Income Tax Basics 484

Part 7 Marketing for Success 489

24. Fundamentals of Marketing 491

What is Marketing? 492

Online Marketing: An Overview 492

The Four Ps of Marketing 493

Marketing Analysis 495

Branding 496

Target Marketing 498

Establishing a Niche 500

Marketing Plan 502

25. Promotional Tools 507

Promotion 508

Public Relations 509

Publicity 510

Press Releases 511

Traditional Marketing Tools: An Overview 512

Proposals as a Marketing Tool 526

26. Marketing Online 533

An Introduction to Online Marketing 534

Web Sites 535

Social Media Marketing 538

Online and Social Media Etiquette 545

27. Selling Strategies 549

What is Selling? 550

Selling Services Versus Products 552

Selling Techniques 553

The Selling Process 554

Types of Presentations 559

The Initial Client Interview 560

Closing Techniques 565

Presentation Follow‐Up 567

Overcoming Objections 567

Additional Guidelines for Making Presentations 569

Part 8 Managing an Interior Design Practice 573

28. Money Management 575

Accounting Methods: Accrual Versus Cash Accounting 576

Accounting Records and Systems 578

Basic Financial Reports: Income Statement, Balance Sheet, and Statement of Cash Flows 582

Computer Applications for Accounting 591

Managing Your Finances 592

Financial Ratios and Percentages 596

Controlling Overhead 601

29. Employee Management 605

The Agency Relationship 606

Job Classifications 609

Job Descriptions 612

Employment at Will 614

Employment Contracts 617

Independent Contractors 620

Compensation and Fringe Benefits 623

The Performance Evaluation 628

The Employee Handbook 629

Mentoring 630

Sexual Harassment 631

Federal Laws Regulating Employment 633

30. Strategic Planning: Designing the Future 639

The Importance of Planning 640

Strategic Planning Basics 641

Mission Statements 643

Business Analysis 644

Business Goals, Objectives, Strategies, and Tactics 646

Budgeting 647

Measuring Performance 649

Benchmarking 650

Appendix 655

Glossary 659

General References 683

Index 713