Project Management and Professional Practice Flashcards

What is a 'retainer' in the context of an interior design fee agreement?

Answer: An upfront payment securing the designer's services, applied to future invoices

A retainer is a deposit paid at the start of a project to secure the designer's availability and commitment; it is typically credited against the first invoice or final fees.

What does 'errors and omissions (E&O) insurance' protect an interior designer against?

Answer: Claims arising from professional mistakes or failure to perform professional duties

E&O insurance (also called professional liability insurance) covers claims that the designer's professional services caused financial harm due to errors, omissions, or negligence.

What is the difference between 'substantial completion' and 'final completion' of a project?

Answer: Substantial completion = project is sufficiently complete for occupancy; final completion = all punch list items resolved and final payment made

Substantial completion is certified when the project is complete enough for its intended use; final completion follows when all remaining punch list deficiencies are corrected and contract closeout documents are delivered.

Which project delivery element does 'fast-tracking' refer to?

Answer: Overlapping design and construction phases to compress the overall schedule

Fast-tracking overlaps design and construction phases — for example, beginning foundation work while upper-floor design continues — to shorten the overall project delivery schedule.

Under ASID's Code of Ethics, what obligation does an interior designer have when a conflict of interest arises?

Answer: Disclose the conflict to affected parties and obtain their consent before proceeding

ASID's Code of Ethics requires members to fully disclose any actual or potential conflict of interest to clients and obtain written consent before continuing with services.

What is the primary distinction between a 'change order' and a 'construction change directive (CCD)'?

Answer: A change order requires agreement of all parties; a CCD allows the owner to direct changes without contractor agreement when time is critical

A change order is a mutually agreed amendment to the contract; a CCD (AIA document G714) lets the owner direct work to proceed before price agreement is reached, resolving compensation later.