THE PARTICIPANTS
Liza and Marc Brooks. She is a model/actress; he is an entrepreneur, and they have a baby. They hired a design firm to furnish their Chicago loft.
Todd Haley, Todd Haley Design Associates Inc., Chicago, in business eight years, trained under designers Larry Deutsch and Daniel DuBay.
Laurie and Paul Kentor. She is a registered nurse and he is a physician. They have used several designers for their various North Shore homes.
Arlene Semel, Arlene Semel & Associates, Chicago, has been in business for 30 years.
C. Jaye Berger is a lawyer based in New York whose firm has specialized in building construction, real estate and litigation for 24 years.
Many designer-client relationships produce business partnerships as well as lifelong friendships. But not all. Sometimes, expectations and personalities don’t mesh. Designers become frustrated about clients who take forever to make choices or buy behind their backs after being shown resources. Homeowners complain about seeing only the most expensive items or being gouged through inflated bills.
Steps can be taken to avoid soured relationships, impasses and litigation. We sought advice from two designers, a couple who enlisted professionals for the first time, another owner who has worked with many designers, and a lawyer who represents owners and design professionals. Here are their comments.
Why is there the potential for conflict between designers and homeowners, and what can be done to lessen it?
TODD HALEY: Clients are writing large checks and it’s often months before they see anything completed. At other times, they don’t hear from their designer. Many designers aren’t as service-oriented as they should be. This is a service business. You have to call regularly, give updates, educate clients. I tell them every quality workroom now is backlogged because of the economy. What helps is for me to explain the process and walk through the steps. Most of what I order is custom, which takes longer.
ARLENE SEMEL: I think people’s expectations are not clear on both sides. In an initial interview, clients need to be asked their expectations of the designer and process; conversely, the designer needs to explain what they expect to provide and clarify what that project requires. We try hard at the beginning to ask the right questions: Have you done this before? Do you want us to do the entire house? We explain our services, the process, what remodeling may be done and how that process differs from buying furnishings. We try to explain how much time they should give. This is a collaboration. If they say, “Here’s the money, have a house ready for me,” that’s fine, if we’re clear. That hardly happens.
C. JAYE BERGER: You’re dealing with people’s most precious sanctum, their home, so even the wealthiest can be rendered mush.
LIZA BROOKS: I guess problems occur because any time you buy a service you’re getting something that’s not tangible. Also, sometimes you pay on an hourly basis, but you’re not around so you go on the designer’s word. We didn’t have problems. We chose a designer recommended by a friend whose style was nice and with whom we could communicate.
MARC BROOKS: I agree. You have to define a set of rules that you want to play by. We weren’t familiar with how things worked. I did not understand the fee structure–our designers’ charge for hourly rates for every time he worked for us plus a charge of wholesale plus 20 percent for everything he purchased.
LAURIE KENTOR: A lot of designers view themselves as artists and they envision something. But then the homeowners add their input and alter the creation of the designer. A lot of designers get frustrated. It’s like trying to design by committee.
What warranties, if any, are realistic?
HALEY: Any warranty that the manufacturer has assigned. This is not like buying a car or refrigerator. It comes down to reputation. If pillow seams open a year down the road, my workroom will repair them for no cost because I work with them a lot. Sometimes I might have to absorb costs or repair something and not make a profit. In most cases I wouldn’t let it break a relationship, but you sometimes draw the line. If children nosedive off a lacquered coffee table and mar it, that’s abuse. If I fixed things like that, I’d go broke.
SEMEL: We try hard in our conversations to cover such issues as fragility and what they need to do to protect things such as fiber-sealing a fabric in advance, which may cost more. When people make choices they need to understand potential pluses and minuses and how to live with them. We try to use resources that are responsible about their products and people known for quality. Problems sometimes arise when a client brings in a resource we’re not familiar with, so we may ask for a sample and check references. But I don’t want to stand up for a product when I don’t know the person.
BERGER: There aren’t warranties per se. It depends what you’ve negotiated and put in your contract.
LIZA BROOKS: I felt I could pick up the phone and call our designers if we had a problem, which I did with a coffee table which had some warping that we didn’t see at first. The company that made it is going to replace it.
MARC BROOKS: We were probably unusual in that we were happy with 99 percent. I’d say be sure you like everything you select and check references.
KENTOR: Owners expect that the product is what they ordered and in pristine condition.
Is a contract necessary and what should be in it?
HALEY: Yes, you need a contract. Mine is six pages, which outlines both parties’ responsibilities. It covers how I work, what I expect, the interview process. I don’t charge for the initial interview, but once I’m retained the meter starts running and I take a $10,000 retainer, half applied toward initial time/commissions and the remainder toward the final bill. I charge by the hour for my time and if I buy anything I charge a commission. I recently changed my contract to include this shopping time. Most clients are decisive, but for some you spend a month shopping for one fabric. I take them to the (Merchandise) Mart to hear likes and dislikes. I do a plan with furnishings and get samples, down to pillow trims. After approvals, I price everything. A lot of clients work on one or two rooms at a time. I give monthly statements detailing purchases and tell when we’ve exhausted the budget. There’s an arbitration clause.
SEMEL: Our contract lays out our services, how we are compensated. We don’t charge for an initial interview but if we proceed we take a retainer and credit it at the end. To the best of our ability, the contract makes provisions for any oddity that may evolve. Most of our clients have a lawyer look over the contract.
BERGER: Those who don’t work with contracts are lucky people who haven’t yet had problems. The contract should be appropriate to the work. There’s no magic number of pages. You want to eliminate ambiguities and be sure both sides are clear on expectations. A client wants to know if a designer will do one layout or two and if they don’t like it will it be redone without paying more? They want to know about hourly charges. If I were counseling a decorator, I might suggest putting in a maximum for shopping time, and if the homeowner hasn’t bought anything, they’ll be charged for the time. Some designers charge a fee and make it nonrefundable to factor in time. I suggest owners show the contract to an attorney but not to a pit bull. You want someone who understands the industry and won’t scare away the decorator, who’s your ally.
LIZA BROOKS: In our case, our designer told us what to expect.
MARC BROOKS: We did our homework. I’d tell others to define your objectives and timetable.
KENTOR: I can’t remember that we’ve had one but it’s a good idea. We certainly had verbal agreements and everything was discussed about fees before we began the process.
What should each side expect in terms of the time they give this process?
HALEY: I shop the Mart for fabrics and like to have most furniture custom made so clients don’t see their things elsewhere. I’m willing to do anything they want, down to towels and linens. I’m also happy if they buy on their own. Most are considerate and tell me.
SEMEL: We try to provide for each client’s needs because they’re not the same. We usually give them more choices at the beginning of a relationship since we’re learning about them.
BERGER: You can’t put a number of hours on this, but owners must remember the purpose is usually to find things to buy. Designers lose patience. A big issue is clients who buy on their own and things a designer specified.
LIZA BROOKS: We went to the Mart once with our designers and looked at a lot so they could see what we liked. They also brought us photographs and fabrics. The arrangement worked well, though sometimes we questioned choices. The one thing that was bad was that initially I felt pressed to make decisions; I need time. My husband is more decisive. I thought I knew what I wanted but changed my mind. I worried that if I hated something, what recourse would I have? None. When I understood this is a chance you take, I was OK. I gave up the idea this was my project; it’s a collaboration.
MARC BROOKS: I thought we had enough time and saw enough samples, sometimes two or three per room. It wasn’t “Here’s the choice and that’s it.” Often, we didn’t come to agreement right away and that was great. I think designers tend to be pretty strong. Often we had in our minds how we wanted rooms to look but they brought us another opinion. It wasn’t bickering, but,”Wow! We never thought of that.”
KENTOR: The first designer we used charged a flat rate or retail for the furniture and the difference was his profit. The second one charged an hourly rate, which probably was fairer, but the bills seemed to mount. The important thing is to feel you’re charged fairly and for the right number of hours, which we did.
Do designers need to be able to choose all work staff?
HALEY: Owners can find sources, but I like to interview the person to discuss the level of quality expected and be sure I’m comfortable and that they can execute work we want. I prefer my resources because they also offer loyalty; if there’s a problem, I can go back and get service.
SEMEL: I’m happy to work with their suggestions as long as it’s time-efficient and productive and they don’t abuse our time and expectations. But part of our job is to bring good resources to the client they might not know about. All sides should be flexible.
BERGER: I have control-freak designer clients who want to be totally responsible and choose all laborers, but they have to follow through. I normally don’t think it’s a good idea because of liability issues. Another reason is some worry the designers get kickbacks from their sources. You can always get independent bids.
LIZA BROOKS: We had a collaboration. Since our home was new we had a contractor we had worked with. We did light fixtures. We had another designer do a stair railing. They pitched that work to someone they knew but it was more expensive.
MARC BROOKS: I wanted the flexibility of working with others, but I understand they want to control the process.
KENTOR: Both times the designers made recommendations but they never pushed unless I asked. If I needed something special, such as an antique bronze piece to become a lamp, we let the designer guide us.
What options do clients have if they don’t like choices?
HALEY: They have a veto at the presentation stage. With walls, a painter does samples which they can live with to see how light affects it. Of course, there are cases where things don’t work out and I end up owning pieces. I wouldn’t lose a job over some pillows. Communication is key, which is why it makes me nervous when someone says, “Do what you want.” I suggest they live with anything they don’t like to see if it grows on them.
SEMEL: They need to be honest. We can always look at other options. Each of our projects consists of a team: myself, a project manager, an associate and the client.
BERGER: You never have an obligation to buy anything, but if you don’t like anything they show, you may not have a good match.
LIZA BROOKS: I was newly pregnant when we started so I had to let go of a lot. At the same time, the designers understood our taste and gave us input. I wanted all white couches and one designer suggested we rethink that because of our dog and baby. It wasn’t easy; white couches had been my dream. Our couches are silvery-gray and I don’t miss the white since they used white elsewhere.
HALEY: If you stop clicking, it’s best to call and explain. Give the designer an opportunity to rectify the situation. It annoys me when I suggest things and some clients have to get six opinions from girlfriends and Mom. Be secure in your professional relationships.
SEMEL: These relationships are no different from those with any professional. Be forthright about what’s not working. It’s hard when a client doesn’t say, “That’s too expensive,” but later complains. We need to talk about money openly. We can be creative with all sorts of budgets, if we talk.
BERGER: There should be a termination clause in the agreement for each side with a set number of days’ notice. But everything has to be paid on outstanding orders.
KENTOR: We changed designers when we moved to our current house. We were older and had a clearer idea of what we wanted. But we also needed a referee since our tastes differed so much. Wonderful as the first designer was, I wanted someone who allowed more input.
There’s no set rule concerning fee structures. What works best?
HALEY: In the end, I think it’s a wash. If anyone loses, I think it’s the designer who usually spends a disproportionate amount of time for the fees. I’m reluctant to work with a fixed-fee budget because I spend so much time. Sometimes, it’s hard because clients tear out a picture and want me to do that room for $25,000 when it includes a $50,000 antique.
SEMEL: A lot of homeowners don’t understand what they get for our charges. We oversee ordering, measure rooms and furniture, inspect finished furniture and fabrics, warehouse things if necessary, oversee installations. We have an entire office with a library of important catalogs; some designers work from their bedrooms, so their costs are different.
BERGER: There are variations but certain things are roughly the same. Most charge a percentage of wholesale or retail for purchases. What’s different is if hourly time is charged for shopping and whether they require a retainer.
LIZA BROOKS: Our designer presented to us the way they worked and we didn’t question it. We got our money’s worth and stuck to our budget. In some cases, we didn’t want to spend so one of our designers said, “Do such and such here and pull back there.”
MARC BROOKS: I think it’s important to stay on top of the hours. Toward the tail end, we started minimizing selections because we had spent enough money for the job.
How can owners avoid cost overruns?
SEMEL: If we set a budget and select appropriately, there won’t be overruns. But, if they decide they need two more chairs, they have to increase their budget or cut back.
BERGER: People develop amnesia. “Can’t we just do this and that?” not realizing that knocking down a wall is expensive. Or, they say, “I don’t care, go ahead.” Then, they see the bill and decide it wasn’t OK. Couples need to be careful and not give different directions.
MARC BROOKS: There were some things we couldn’t pass up, but overall we were on target. It’s an expensive process.
KENTOR: With our first designer, I think we gave a ballpark figure and probably went over a little. This time, we’ve never really looked at a budget but looked at things and said yes or no.
How does everyone know when a home is done?
HALEY: That’s individual. Some think it’s never done, and it’s wonderful to keep going back to let it evolve. It’s fun to move things around. Both sides know when to take a breather because of a budget or to settle in.
SEMEL: It’s easier for us because we do an installation over the course of a week or so-clean, put down carpeting, install window treatments, bring in furniture. Some clients let us go through their accessories or we bring new ones for approval. Some want us to buy bedding, dishes and towels. Some like to live in their homes and see if they want more.
KENTOR: Our home is definitely not done; we’re getting ready to redo the kitchen. We’re also magpies and rotate things through. But it’s almost done.
What if either side isn’t happy at the end?
HALEY: The only times I’ve not been happy is when I’ve given in to clients. I did one client’s home and she insisted on her drapery person and the room needed curtains that looked like ballgowns with lining and interlining. She disagreed, and the curtains look skimpy. I try to dig in my heels when important.
SEMEL: We work hard for that not to happen. We typically spend so much time talking that it doesn’t.
BERGER: It depends what they’re unhappy with. If something specific is wrong, you need to determine who’s responsible. Most designers bend over backwards. Instead of rushing to hire a lawyer, try to resolve things.
LIZA BROOKS: I think there are always options. We talked about an ottoman. The designer wanted a splash of bright green in the fabric; I’m anti-green. I spoke up by making a joke of it and then let it go. When it arrived, I didn’t know if I liked it, but with the dark floors it looks more silvery. I’ve come to like it because it fits the space. In years to come, I might change the fabric or move it.
Finally, the best thing learned from a client or designer?
HALEY: Each allows me to mature and hone my style. I always try to leave my imprint, but align it with their point of view.
SEMEL: We look forward to repeat clients who do different homes, clients who expand their choices. We’re teachers.
LIZA BROOKS: I knew this but our designers helped me keep sight of it: Don’t be afraid to put things away and be minimal. There’s something beautiful about a bare wall and empty space. You walk into our loft and are taken aback.
MARC BROOKS: To pick things for a very long time.
KENTOR: Our first designer told us, “Never walk in and say, ‘What lovely wallpaper.’ Nothing should knock you over the head, but it should meld together for a stunning effect.”
