Interior Design - Client Management

Whether you will be working for yourself, or part of another firm - client management is a hot topic! I just did a few videos on this, if you missed them, go check them out. Based on some comments & feedback, I figured it was a good topic for our blog this week!

Lets outline some basics:

• Technical & Financial Project Scope Expectations – Defining what is included in the project, ensuring understanding on what exactly the design services are, the agreed upon budget & fee budget, and the basic process & timeline to be expected.

• Communication & Transparency Around the Process – Set the expectation from the start on how & when you will be involving the client, updating the client, needing approval from the client. As well as how & when they should expect you to be in communication with any other parties such as vendors & contractors.

• Scope & Service Boundaries – Setting firm expectations on what is and isn’t included in the contract (e.g., not providing project management, contractor oversight, or work beyond agreed spaces). Making sure this is clear in email follow up conversations & in your contract.

• Managing Payment Boundaries – Making sure that initial conversations, follow up emails, and contracts are crystal clear on your non negotiable payment terms & methods are and what the natural penalties are when those are not respected.

• Decision-Makers ("Too Many Cooks in the Kitchen") – Clarifying the number of client-side decision-makers allowed - from the point of signed contract, to avoid miscommunication, delays, and conflicting input. Be sure all of your communication & written communication has this policy clearly outlined. (e.g., family members, contractors, or unrelated stakeholders).

  
  
  
  

To help you understand why it is absolutely imperative that you are so strict on having this communicated & in writing as standard practice - and to shed some light on what happens when you don't, and/or you veer outside your policies and boundaries...let's talk about a few stories and see what a mess it can make.

True Story #1:

My company -Charles Interior- had a multi-family project in Tennessee. We made it clear so many times, from the beginning of the project, for months after (over 6) it started, that we are not responsible for measurements onsite & how that impacts orders. The client/clients onsite team is responsible to obtain relevant necessary measurements & quantities for orders etc.. They agreed verbally. We had it in emails constantly. Eventually, due to their own staffing issues, they had an issue and provided us with completely incorrect information. We didn't realize this, until the order came in and was 80% unusable. This led to a $60k loss - they blamed us & wanted us to take responsibility for the loss! Here's the thing, I got lucky that they did not pursue legal action. Not because I was in the wrong & would have lost. But because right or wrong- it will cost you in legal fees or you will choose to pay something in order to avoid the cost & stress of legal action. HOWEVER - had I had it completely clearly in my contract, I could have guaranteed that they had nothing to even attempt legal action or even point a finger. Either way, I lost. This client ended our project in victim mode, never hired us again, and hurt our reputation. Didn't matter that I/we were 100% in the right. But it could have helped, had I handled all of it in writing prior to signing & had it clarified in the contract.

Story #2:

I took a medical office project. He loved every step of the designs - enthusiastically. So what when wrong? Well, despite clearly in writing, and my contract stating at which point in the design phases payments were due...he didn't like it. And I did what I now tell you not to do...I tried to appease him by giving him things meant for later design phases...early. So he'd be more comfortable making the next overdue payment. (3D renderings of the space before we could verify pricing & budget fit - I don't like to show a rendered space that I'm not sure I can deliver...for their sake & mine.) Guess what, he STILL didn't want to pay and did NOT give credit for me going "above & beyond" for him. Had lots of name calling - yes he was a character. Accused me of scamming him. And even had a lawyer send a letter requesting full refund! The fact that I had mostly clearly outlined the payment schedule in the contract, and had in writing him approving the design direction & his satisfaction to how things were going, made it that I could ignore that childish temper tantrum & legal notice...because it was obvious that he would lose money trying to fight it. Sure, it could have cost me too but he'd have looked like an idiot fighting it to come out with less money than he started. (This was a smaller job, on a bigger job with more $ at stake - my contract was not clear enough actually regarding payment timing. Why? Because I had somewhat ambiguous descriptions accidentally. It wasn't clear enough what was included in "design direction" etc. And he was arguing more should have been a part of that phase. He still wouldn't have won a full refund, but could have argued no payment was due etc.. I fixed the contract :)

The point of all of this is, generally, don't go the extra mile - especially in an effort to appease an upset client. Sure, there will be exceptions. And if you/your team made a mistake & you'd like to make up for it - that's often a good exception. Use your judgement but also make sure you don't open yourself up to being completely taken advantage of. The people who push past your policy & boundaries, the ones who disrespect you...they won't hire you again anyway most likely! Appeasing them truly has no good end game & likely is endless.

XOXO

Shira