CID Project Management and Business Practices Flashcards

Which document outlines the scope of services, fees, schedule, and responsibilities between an interior designer and client?

Answer: Letter of agreement / design contract

A letter of agreement or design contract formally defines the scope, compensation, schedule, and responsibilities to protect both the designer and client.

In interior design billing, what does a 'cost-plus' fee structure mean?

Answer: The client pays the designer's cost plus an agreed markup percentage on all purchased items

In a cost-plus structure, the designer purchases items at trade pricing and resells them to the client at that cost plus an agreed percentage markup.

What is the primary purpose of a 'punch list' in interior design project management?

Answer: A comprehensive checklist of incomplete or defective work items to be corrected before final payment

A punch list documents all outstanding deficiencies, incomplete installations, or damaged items that must be resolved before the project is considered complete.

Which phase of the interior design process involves the preparation of final drawings, specifications, and schedules used for contractor bidding?

Answer: Construction documents

The construction documents (CD) phase produces the complete, detailed drawings and written specifications that contractors use to bid and build the project.

What professional liability insurance protects interior designers against claims arising from alleged errors or omissions in their professional services?

Answer: Errors and omissions (E&O) insurance

Errors and omissions (E&O) insurance, also called professional liability insurance, protects designers if a client claims a design error or oversight caused financial loss.

In a design-build project delivery method, who is responsible for both the design and construction of the project?

Answer: A single entity that provides both design and construction services

In design-build delivery, one entity is contracted to provide both design and construction, streamlining communication and often reducing project schedule.