PROFESSIONAL PRACTICE

Question 1

In legal terms, what is negligence?

Answer 1

This legal term describes the failure to use due care to avoid harming another person or another person’s property.

Question 2

What are the three obligations of the interior designer during the bidding phase of a project?

Answer 2

During this phase of a project, the designer assists the owner (client) in preparing the documents and forms of agreement by:

• filing the necessary forms for governmental approvals
• obtaining proposals
• evaluating the contractors’ proposals

Question 3

What four tasks does the interior designer normally perform during the schematic design phase of a project?

Answer 3

The designer:

• prepares diagrams and drawings showing the general functional relationships required by the project
• develops preliminary space plans
• prepares design concepts, including colors, finishes, and furniture
• prepares a preliminary statement of probable project costs

Question 4

What are some of the advantages of a partnership as a business organization?

Answer 4

Advantages of this type of organization include the following:

• It is easy to form
• The work is spread among several owners
• The different and unique skills of several owners can be used
• Employees can be hired as necessary

Question 5

What does general liability insurance cover?

Answer 5

This type of insurance covers a range of items, including property damage, personal injury caused by the designer or employees, and other liabilities if contractors or subcontractors do not have their own insurance.

Question 6

What is a limited liability company?

Answer 6

This is a type of business that combines the advantages of a corporation with those of a partnership.

Question 7

What is the chargeable ratio (or utilization rate) of a business?

Answer 7

For a business, this is the percentage of time or money spent on direct labor divided by the total time or money spent on direct and indirect labor in addition to vacation, holiday, and sick leave.

Question 8

What is indirect labor?

Answer 8

This is all labor NOT charged to a project or to a revenue-producing account.

Question 9

In a designer’s contract, what purpose does an indemnification clause serve?

Answer 9

This type of clause attempts to hold harmless both the owner and interior designer for any damages, claims, or losses resulting from the performance of others with whom the interior designer has no contractual relationship.

Question 10

In regard to interior design, what is agency?

Answer 10

This is a legal term for a relationship in which the interior designer acts on behalf of the client in dealings with a contractor or vendor.

Question 11

What are the six primary phases of design services, as outlined by the AIA Standard Form of Agreement for Interior Design Services?

Answer 11

This document outlines the following primary phases of design services:

• programming
• schematic design
• design development
• contract documents
• bidding and negotiation
• contract administration

Question 12

What is direct personnel expense?

Answer 12

This is the expense of employee salaries plus the cost of mandatory and discretionary expenses and benefits.

Question 13

What is a contract?

Answer 13

This is an agreement between two parties in which one party makes an offer to receive something in return for services and the other party accepts the offer.

Question 14

What are five ways an interior designer can charge for services?

Answer 14

An interior designer can do this by means of:

• a fixed fee
• an hourly rate
• a percentage of the project cost
• a rate per area (square footage) planned or designed
• reselling wholesale furniture purchases at retail prices

Question 15

What are seven common additional services, outside the scope of standard services, that may be provided by the interior designer?

Answer 15

These services include:

• investigating existing conditions or facilities
• making detailed inventories of materials or furniture
• assisting with graphics or signage
• assisting with the procurement of art
• receiving and accepting furniture on behalf of the client
• making as-built drawings
• participating in selection interviews with prospective contractors

Question 16

What is considered to be the project cost?

Answer 16

This is the total cost to the owner of all components of a project, including construction, furniture, equipment, the contractor’s overhead and profit, and the costs of managing or supervising construction.

Question 17

What kinds of expenses are NOT included in the project cost?

Answer 17

These include the designer’s professional fees, consultants’ fees, financing cost, and other costs that are the responsibility of the owner.

Question 18

What is a purchase order, and why is it used?

Answer 18

This form gives the receiving party all the necessary information to supply goods or services and authorizes the purchase of the items listed on the form.

Question 19

What type of license would an interior designer need in order to buy furniture at wholesale and sell it at retail?

Answer 19

An interior designer would need a sales tax license (or resale license) to do this.

Question 20

When a project is complete, who takes ownership of the contract documents?

Answer 20

At the end of a job, the interior designer retains the rights of ownership to these.

Question 21

What is a sole proprietorship?

Answer 21

This is a type of business that is owned by an individual who is personally liable for all debts of the company.

Question 22

What type of insurance should an interior designer have to protect against fire an theft?

Answer 22

Property insurance covers these situations.

Question 23

Who is responsible for determining the accuracy and completeness of dimensions, details, and quantities on shop drawings?

Answer 23

The contractor is responsible for these items on shop drawings.

Question 24

Who is responsible for providing any laboratory tests, inspections, and reports required by the contract documents?

Answer 24

When these procedures are required by the contract documents, the owner must provide them.