Interior design fee structures can seem daunting and complex. But they don’t have to be! In this article, we will outline the different types of interior design fee structures, and provide tips on how to calculate interior design project estimates. We’ll also provide a project cost estimation template to help get you started. So let’s get started!
Elements of an Interior Design Fee Structure
There are several different types of fees that can be included in an interior design fee structure. Here is a brief overview of each:
Hourly Rate: This is the most common type of fee charged by interior designers. An hourly rate allows you to charge for your time, and can be adjusted based on the scope of work.
Design Fees: Design fees are for the development of the design concept and plans. This can include things like space planning, furniture selection, and finishes.
Management Fees: Designers charge management fees for the coordination and management of a project. This can include project administration, site visits, and communication with contractors.
Procurement Fees: Procurement fees are charged for the purchase of materials and furnishings. This can include sourcing, ordering, and shipping.
Retainer: A retainer is a fee paid in advance to secure your services. Retainers are typically a percentage of the total project cost, and are paid in installments throughout the course of the project.
Reimbursable Fees: Reimbursable fees are expenses that are incurred on behalf of the client. This can include things like travel, shipping, and postage.
Late Fees: Late fees are charged for payments that are not received on time. Late fees are typically a percentage of the outstanding balance, and are assessed at the end of the project.
How to Calculate Interior Design Fees
There are several different methods that can be used to calculate interior design fees. The most common methods are flat fee, by the square foot, percentage of project costs, and hourly rate.
Flat Fee: A flat fee is a set price for the entire project. Flat fees can be based on the scope of work, or can be a lump sum payment.
By the Square Foot: This method is typically used for larger projects, such as new construction or major renovations. The fee is calculated based on the square footage of the project.
Percentage of Project Costs: This method is typically used for projects with a large budget. The fee is a percentage of the total project cost, and can be adjusted based on the scope of work.
Hourly Rate: This method is typically used for smaller projects, or for services that are not billable by the square foot. The hourly rate can be adjusted based on the scope of work.
Combination Method: This method is a combination of two or more of the above methods. The most common combination is flat fee + hourly rate.
Interior Design Fee Structure Template
Below is a template that you can use to create your own interior design fee structure.
Hourly Rate: __________
Design Fees: __________
Management Fees: __________
Procurement Fees: __________
Reimbursable Fees: __________
Late Fees: __________
Flat Fee: __________
By the Square Foot: __________
Percentage of Project Costs: __________
Hourly Rate: __________
Combination Method: __________
Download Our Interior Design Fee Structure Template
Here are 2 examples of interior design fee structures and the total costs:
The interior design fee structure doesn’t have to be complicated. By using a combination of the methods outlined above, you can create a fee structure that works for you and your clients. And, by using a template, you can make the process even easier.