How To Reduce Risk in Large Interior Design Projects With Lots of Unknowns

Feb 2

Landing a large interior design project comes with many benefits, but large projects can also feel risky. You will likely need to turn away other work, have an extended timeline, significant unknowns, rely more heavily on your team, and have to pivot

Landing a large interior design project comes with many benefits, the most obvious of which is a corresponding large fee! A large project may also provide marketing opportunities (new, fabulous project photos for your website, getting published, referral opportunities from higher-end clients, reputable builders, or seasoned architects, etc.). Many designers feel a large project is also the best opportunity to really flex their creative muscle by having the chance to execute innovative ideas at a grand scale.

But large projects can also feel risky. You will likely need to turn away other work, you may have an extended timeline that is difficult to pinpoint, there may be significant unknowns, you may need to rely more heavily on your team, and you realize you will have to pivot many times as you work through all the phases. And then there is that anxiety that comes along with biting off something that feels daunting: Yikes, how will I EVER get this done!?!?!?!?

I know a large project for some may not be a large project for others, so here are a few definitions:

It may have a larger or significantly larger budget or fee than projects you typically execute.
It could be larger in square footage or scope than your typical projects.
It could have a longer timeline than you are used to, spanning a year or multiple years.

At the highest level, executing a large design project (and staying sane throughout - #goals) requires careful planning, effective communication, and strong project management skills. But it is like the difference between making Tuesday night dinner and making Christmas dinner for 30 people: it requires exponentially more preparation, planning, and organizing in advance. There is just far greater potential for things to go awry when you are juggling more balls in the air.

A large project means you will just be doing more of what you generally do (space planning, sourcing, procurement, client interaction, scheduling, customer service, consulting, damage control…) for a longer period of time.

And, we all know, the longer the timeline, the more likely there are to be issues, scope creep, delays, and changes, which ultimately means the potential for these exciting large projects to actually NOT be profitable when it’s all said and done. Not ideal.

So, how do you minimize risks in a large and long interior design project with many unknowns to ensure profitability?

Keep reading for my tips:

Do not be afraid to vet the design/build team.

Before taking on a project, you are 100% within your rights to vet the other stakeholders in the project. Ask the potential client if they’ve already secured a builder or architect. Find out what the project timeline is. Collect as many details as you can about project expectations.

Then, do YOUR due diligence. If there is a contractor or architect chosen or being considered, see what you can find out about them. Ask other designers, check out their website and online reviews, and maybe even reach out to say you are being considered/are considering this project and want to get to know them and understand how they work.

Try to get a sense of whether these companies are known for quality workmanship, excellent communication, finishing projects on time and on budget, operating with integrity, being organized, keeping job sites clean, etc.

And if not, you have some options.

Option One: Turn down the project. Sorry, not sorry. And if you need help with how to decline a project, our email templates will make your NO sound like a YES.
Option Two: Split the project into smaller phases to protect yourself. Establish a contract for the initial phase(s) of the project only. Ideally, it should be a scope that has clear boundaries and a short timeline. This could be a working consultation, an architectural review, or a design day to give the client quick results to help them start their project on the right foot. Only after you are involved with the early portion will you agree to continued involvement. This approach gives you a fairly risk-free escape hatch if there are issues.

Write a 100% crystal clear scope of work.

Once you’ve vetted the project and have determined it’s a good fit, it’s time to write up a comprehensive scope of work (PS: our contract template includes sample scopes of work). To ensure you account for everything, break it down into categories. Consider all aspects of discovery, design, construction, and installation.

First, detail all of the phases that will be included. This could include (but is not limited to) information gathering and defining project objectives, concept development and approval, space planning, floor plan and elevation drawings, renderings, material and finish sourcing, final approvals, construction documents and specs, procurement and order management, administration throughout construction, installation, etc.
Next, list what the deliverables will be (to the client, to the contractor, to the vendors, to the trades, to any other project stakeholders) at each phase for each of the tasks you will be performing.
Then, anticipate the coordination efforts that will need to be completed. Think about the type of meetings and with whom, how many of each type of activity will need to be performed (for instance, how many site visits during construction, how many revisions will you manage, how many presentation meetings, how accessible you will be throughout construction, how many months you will provide construction administration or project management), what will need to be done by you and your team at each step in the process, and so on. This will be specific to the type of project you are doing and the scope itself.

Preciseness in your scope language will help manage client expectations (make sure also to include hot point issues in your welcome guide so clients see them more than once) and will protect you from scope creep during the project ← it won’t remove it altogether; it will simply ensure you get paid for any work you do that wasn’t included in the initial fee or scope.

Protect the black holes!

If you’re taking on a massive-scale interior design project, it’s likely NOT your first rodeo. You probably have a good idea of where and when these projects typically go off the rails.

So, be proactive.

PROTECT YOUR BLACK HOLES.

How do you do this? Well, obviously, first, by writing a crystal clear scope of work. And next, by having a solid contract written JUUUUUUUUUUUST for interior designers.

These two things should:

Protect you in the event of delays, cancellations, indecision, or unforeseen circumstances.
Be specific about the contract length to account for what happens should there be postponements, delays, or setbacks.
Allow you to easily assess additional fees for out of scope requests, extensive delays, or excessive change orders.
Have a solid cancellation/termination policy in your contract that clearly states what happens to fees if the project doesn’t move forward.

Be sure to read my favorite terms to include in your interior design contract here.

And PS: I’m not an attorney, and this is not legal advice. You should consult a licensed attorney in your state to ensure your contract protects you.

Adjust your billing.

A large project may call for an adjustment to your billing model — the way you typically bill for your work. Include within your scope and flat fee pricing only the things that are in your control.

So don’t put a flat fee (which is essentially a guarantee on deliverables and time) on construction work being done by a contractor and their subs. Yeah, NO.

And also, por el amor de Dios, do not act as a general contractor if you aren’t a licensed general contractor…but that’s another topic.

Read about the interior designer’s role in construction project management here.

Instead, set up your billing so you are compensated for any work completed that is not done by you or your team. Project components that are advantageous to bill hourly for in long interior design projects generally include things that occur once construction is underway: things like reselections for discontinued items, any value engineering required if the cost starts exceeding the budget, interaction and communication with trades, site visits, additional selections that need to be made that only come up during construction and weren’t previously captured in the scope, etc.

Billing hourly for certain project aspects is the best way to ensure you don’t get sucked into a black hole of never-ending effort and energy where you’re at the mercy of the construction timeline.

You may also consider collecting a larger portion of the total fee at the onset of the project rather than further down the road. Front-loading your collection of design fees will protect you if timelines get misaligned.

Make sure you have capacity.

When you’re considering taking on a large interior design project, make sure you have the right resources and team in place to support you and the client for the duration of the project.

This means, yes, you will actually want to look at the tentative timeline on a calendar to see when key milestones will take place to ensure you and your team are available and have capacity to deliver on those items while also handling all the other contracted projects in your pipeline.

Be sure to assess your and your team’s capacity BEFORE you say yes to a large interior design project.

And, if your team isn’t available, it may mean bringing on some independent contractors to support you at those key phases (which will likely mean the design fee will need to be higher than normal), moving the project start date so your team WILL be available, or declining the project altogether.

If you struggle with determining project timelines, figuring out your capacity for new projects, and booking out your pipeline, be sure to add your name to the waitlist for our next cohort of the Designed To Scale® Method.

Establish clear communication channels.

Make sure you have key communication channels established both upstream (to clients, contractors, and vendors) as well as downstream (to your team). Define who on your team will be the key client contact and how and when communication will occur. And then, oh yeah, don’t forget to introduce them to the client during onboarding.

Then, within your team, define the roles and responsibilities of each person to ensure clear communication and accountability. Use a project management software to assign tasks and promote collaboration (we love Asana). Consider individual strengths and expertise when delegating to ensure your team can execute without your eyes on everything.

Communicate expectations and timelines very clearly. Establish regular check-in points or meetings to discuss project updates or challenges with both your team and your clients. And foster an environment that encourages open communication and collaboration to keep everyone focused and motivated.

Oh yeah, and don’t forget to include your communication policies in your contract. Obvi.

So, in general, the approach to taking on a new interior design project is really just preparing for the worst that could happen and then having a backup plan in the event it DOES happen. This is something I did with every single wedding I planned when I had my wedding planning company. We had the plan, then the backup plan, then the backup to the backup plan.

Could project timelines get extended? Revise contract to include a contract termination date.

Could I need additional help with design drawings? Line up 1099 contractors in advance and adjust the design fee to include the additional expense.

You get the idea. With these protections and proactive reinforcements in place, you should be able to launch a large-scale interior design project fairly worry and risk-free. With each large project you complete, the next large-scale interior design project that comes your way will not be as daunting because you’ll have sized up your capabilities and know just how to protect yourself.