Dear Dakota | A Deep Dive into Commercial and Hospitality Design Projects vs. Residential Projects

Dec 1

Are the processes the same for commercial and hospitality projects as for residential ones? The process is basically the same regardless for residential or commercial projects. However, sources for furniture, flooring, wall treatments, hardware, etc

Dear Dakota,
Can you tell me whether the processes are the same for commercial and hospitality projects as for residential ones? What do I need to do if I want to expand into these project types?

The process I outline for all my designer clients is basically the same regardless of whether you are doing residential or commercial projects or whether those projects are heavy on furnishings selections or more weighted toward space planning and construction.

A project begins with an inquiry. Most often, for residential interior designers, this takes the form of a message submitted via the contact form on a website. In the commercial world, this process can be more formalized. Project owners may issue an RFP - Request for Proposal. This will include a summary of the project goals, a rough timeline for the design phase, and perhaps a budget. The RFP is sent to a number of design firms who may be appropriate for the project, and basically, it requests firms to submit several things IF they want to be considered: information about the firm, description of experience with the project type, resumes of principals and designers who would work on the project, and other information that may show the firm is qualified for the project.

Responding to an RFP may take a bit of time, but it gets your design firm on the shortlist of those who may make a presentation to the client. Much of the information included in an RFP response would resemble the contents of your residential Welcome Packet for clients. And, if chosen to make a presentation, the exchange of information may resemble a more formalized version of a Discovery Call.

After being chosen for ANY project, the next steps are precisely the same: preparation of a Scope of Work Document and the signing of a contract that includes the fee structure and payment schedule for the project.

The client onboarding phase is the point during which you gather information about the project. This could include having the client complete a questionnaire, gathering the client’s inspiration images and brand guideline book, and taking measurements and photographs of the space. This process (usually called Programming in the commercial world) can be a bit more complex because there may be more stakeholders involved (as compared to one or two homeowners).

For instance, for a dentist’s office, you may need to interview the dentists, the hygienists, the front desk staff, and the business manager. Typically, the data gathered from these information-gathering efforts are documented in a Programming Report, which will be an important project record and may be shared with the client.

Commercial projects almost always have a distinct conceptual/schematic design phase before moving into the full design development phase. There is often at least one client design presentation at the end of each of these design phases.

For residential projects, you typically deal with one homeowner, or perhaps a couple. For a commercial project, you may need design input and approval from a wider range of stakeholders. And the various decision makers may have different viewpoints. The business owner or CEO may be keyed in on project cost, while other users of the space may focus on functionality, durability, safety, or aesthetics. Ultimately, for a commercial or hospitality space, there will be a wider range of user concerns to try to accommodate, even down to considerations for the custodial and cleaning staff. Not everyone will be involved in decision making, but your design will impact every single person who enters that space.

Once the design is approved, a commercial project WILL require a set of construction documents (plans, elevations, schedules, detail drawings, and a specifications book). You may be working with an architect to complete these if substantial construction is involved. In an increasing number of states (about eighteen), qualified interior designers can sign the construction documents for the purpose of applying for a building permit, provided no load-bearing alterations are being made.

You may also be putting together documents used for contractor bidding. This bid package will include your construction documents and specs.

With procurement for a commercial project, it is often the case that the General Contractor does all the ordering, including furniture and finish materials. So, it is important for designers to realize these projects will not have the same opportunities for revenue from product markup and sales.

In the world of vendors, there is a fairly distinct separation between those who manufacture products intended for commercial use and those who manufacture materials and furnishings for residential use. So, your sourcing and specifying will be a whole different ball game in the commercial or hospitality sector.

Sources for furniture, flooring, wall treatments, hardware, etc., will be different for commercial projects than for residential.

Additionally, there may be sector-specific regulations and guidelines you may need to become proficient with, such as for medical or dental practices. There are regulatory entities that oversee the operations of medical facilities, restaurants, hair salons, spas, etc. Make sure you know what agencies and regulations exist. Equipment manufacturers and their reps can provide much input, as they are experts in those applications. Means of egress requirements and occupant load constraints for public buildings are outlined in the International Building Code. Any public building will need to comply with the most current accessibility standards.

Of course, the more complex the construction aspect of a project, the longer the construction and implementation phase will be. So, commercial projects often involve a longer construction administration phase, which means more site visits, time tracking and trouble-shooting, additional value engineering of re-selections, and a longer project timeline.

As with the residential design world, commercial and hospitality projects run the gamut for billing methods. Many smaller projects are billed hourly and may include a not-to-exceed stipulation (meaning, the designer will set a maximum limit on the total fees charged). The larger the project, the more likely it will involve flat fee billing. Designers who specialize in one commercial project type, say dental offices or specific franchise businesses, may bill using a per-square-foot method.

Invoicing, client communication, project management, offboarding — all these processes will be nearly identical for all project types: residential, small commercial, hospitality… So, if you have well-honed processes, there is nothing at all holding you back from expanding into these market sectors.

Nevada, Louisiana, California, Alabama, Oklahoma, Utah, and Washington DC, DO require interior design licensing of some kind in order to perform commercial interior design services. So, be aware of the requirements in your state. Residential interior design is far less restrictive, as single-family and duplex homes are considered exempt building types (exempt from requiring licensed design professionals for design work). Think about it this way: many single-family homes are designed by builders, NOT licensed architects. In the same way, licensing is not required for the design of single-family home interiors.

But DO know the requirements in your state if you want to expand into commercial work. More information is available here.