Dear Dakota | How To Protect Yourself as An Interior Designer from Contractor Mistakes
One thing that comes up all the time for interior designers is how to deal with outside contractor mistakes and, more specifically, how to protect yourself as an interior designer from liability caused by those mistakes.
Dear Dakota,
How do we protect ourselves from a contractor's mistake or hold a contractor accountable for a portion of the cost?
Unfortunately, this interior designer had to pay the cost of a contractor's mistake just to resolve the issue and keep the client happy. Does this sound familiar? I hope not, but it’s certainly a reality in the interior design world.
The key to ensuring your interior design firm isn't held liable for contractor mistakes is proactive planning and clear communication.
The first thing I want to say is this: in the U.S., there are VERY STRICT laws and licensing requirements around general contracting — and if you are in a very strict state and are acting as a GC without a GC license, you could be opening yourself up to liability for any issues on the job site.
So, FAMILIARIZE YOURSELF WITH THE LAWS IN YOUR STATE AND DO NOT ACT AS A GENERAL CONTRACTOR UNLESS YOU ARE LICENSED AND HAVE PROPER INSURANCE.
Now that we have cleared that up, if you are an interior designer and NOT a general contractor, you are likely NOT managing subcontractors and you certainly should never be managing a GC’s subs (the GC chose them and contracted with them, NOT YOU, and those subs are operating under the GC’s license and supervision).
So, just as YOU, the interior designer, would be liable if your design assistant specified the wrong sofa arm for a client project, your contractor would be liable if one of their subs installed flooring or windows incorrectly. (Again - you’re not making the GC buy a new sofa because the wrong arm style was specified for the living room they are building…just as the GC should not make you cover the cost of a new window if their installer broke it when installing or installed it upside down).
That being said:
Your interior design clients should have separate and direct contracts with all outside contractors. It is not for the interior designer to hire licensed contractors—your client should do that.
So again, KNOW YOUR STATE’S LAWS AROUND GENERAL CONTRACTING.
PS: I am not an attorney, and this is not legal advice.
Then, in YOUR contract with your interior design client, include a term that clearly states that you, the designer, are not a general contractor and are not responsible for hiring contractors, overseeing their work, or fixing their mistakes.
In fact, it is absolutely within your right as a business owner to decline projects with contractors who have a history of screwing up and not taking ownership. As your business matures, you’ll get to know which contractors will do the right (or wrong!) thing. You can save yourself future headaches by declining projects that involve those contractors or simply ONLY scope the furnishing part of the project, not any construction finishes.
Then, once the project is started, the interior designer’s responsibility is to make sure their specification books are i) approved by the client) and ii) very detailed with clear instructions and images for installation, so there is ZERO room for contractor/subcontractor errors.
These specs should include the interior designer’s contact information so that if there are questions, the contractor can reach out and settle them before any work begins. If the instructions are clear and the contractor has a line of communication, there should be no issue.
The contractor’s job is to make your mutual client’s vision a reality. If they are hiring subcontractors to complete the job, it is the contractor’s responsibility (as the company hired by the client) to ensure those subs follow the same process and know and understand the specs exactly as submitted by the interior designer. The contractor chooses AND gets paid to manage their subs—designers don't, so don’t get involved in that relationship and incur unnecessary expenses for your clients.
If something does go wrong during construction, the interior designer can advocate for and arm the client with knowledge in the form of what is industry standard for quality workmanship, and by showing submitted and approved specs. Usually, if there’s a problem, it's either:
a) because the contractor didn't have proper design install instructions from the designer or
b) they messed up and need to cover it,
So, making sure the provided specs are clear and concise is the key to preventing these mistakes (and if they do happen, the contractor is liable).
For more tips on working with general contractors, check out these additional resources:
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