CID CID Project Management and Business Practices 1 — Questions and Answers
Question 1: Which document outlines the scope of services, fees, schedule, and responsibilities between an interior designer and client?
- Design development drawing set
- Letter of intent
- Letter of agreement / design contract (Correct answer)
- Purchase order
Correct 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.
Question 2: In interior design billing, what does a 'cost-plus' fee structure mean?
- The designer charges a flat fee regardless of project complexity
- The client pays the designer's cost plus an agreed markup percentage on all purchased items (Correct answer)
- The designer earns a percentage of the total construction budget
- The client is billed by the hour with no markup on furnishings
Correct 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.
Question 3: What is the primary purpose of a 'punch list' in interior design project management?
- A list of approved vendors and suppliers
- A schedule of all procurement lead times
- A comprehensive checklist of incomplete or defective work items to be corrected before final payment (Correct answer)
- A prioritized list of design decisions pending client approval
Correct 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.
Question 4: Which phase of the interior design process involves the preparation of final drawings, specifications, and schedules used for contractor bidding?
- Schematic design
- Programming
- Construction documents (Correct answer)
- Design development
Correct 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.
Question 5: What professional liability insurance protects interior designers against claims arising from alleged errors or omissions in their professional services?
- General liability insurance
- Workers' compensation insurance
- Errors and omissions (E&O) insurance (Correct answer)
- Product liability insurance
Correct 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.
Question 6: In a design-build project delivery method, who is responsible for both the design and construction of the project?
- The owner alone
- The general contractor alone
- A single entity that provides both design and construction services (Correct answer)
- The interior designer and a separate contractor under separate contracts
Correct 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.
CID CID Project Management and Business Practices 1
Which document outlines the scope of services, fees, schedule, and responsibilities between an interior designer and client?