DEVELOPING A PROPOSAL FOR DESIGN SERVICES

Many master plans involve the construction of steps, walls, decks, fences, arbors, and so forth. But, there is a difference between the two. Scope of Work The proposal should identify specific tasks the designer intends to complete. A retainer fee is common practice in design professions. Detailed construction drawings are typically not part of the “Proposal for Design Services” unless both the designer and clients agreed beforehand that it was something to be included. However, when both the designer and the clients sign a proposal, then the proposal becomes a legal contract. At this time, the designer should ask for feedback from the clients about the different design ideas. If they decide to go ahead with the project, then the designer should formalize the dis­cussion by preparing and sending the clients a “Proposal for Design Services” within a few days of their meeting so the clients can study the specifics. A re­lated document is the contract. Also, the proposal should indicate the number of copies of each drawing that will be given to the clients. After the designer and clients have discussed the topics presented thus far, the clients should be asked if they are interested in entering into a contract for design services. If the clients are in agreement with the proposal, they can sign it and return a copy to the designer. Other firms prefer to prepare more personal proposals taking into consideration the first meeting’s discussions. On a typical project, the clients should be given copies of the preliminary designs and the master plan. A proposal is a document that simply outlines the specific services that are to be rendered for a particular sum of money. They may or may not be able to make a decision at the end of the first meeting. At the third meeting, the designer pres­ents the master plan to the clients. In order to prepare a master plan, typical tasks involve completing the site measurements, base map, site analysis, design program, preliminary design alterna­tives, and final master plan. With regard to setting completion dates for the various phases of the de­sign project, the designer may prefer to pinpoint completion dates by telling the clients the exact date when work will be completed. There are some companies that collect the full design fee after completion of all the specified work. The partial completion fee is the amount of money paid at the presentation of the preliminary plans. Often, clients feel more assured about an agreement if everything is spelled out in writing. Some firms have standard forms for “Proposals for Design Services” with spaces for filling in the times, dates, costs, stipulations, and signatures. Furthermore, the designer may be wast­ing time if the clients decide not to enter into the contract. However, this is not always a good practice. Upon receiving the signed contract, the designer can then begin the work. There may be times when unforeseen circumstances arise, causing work to be delayed. The final payment is made at the presentation of the master plan. If the clients accept the proposal, they can sign it to establish their acceptance. Fee and Payment Schedule The “Proposal for Design Services” should outline the fees for design services. The second meeting usually takes place when the designer has completed the preliminary plan(s). Contract Acceptance Our discussion so far has concentrated on the proposal. Because these situations are not predictable, identifying exact dates is not a recommended practice. Some homeowners assume that a master plan will contain all the in­formation necessary to actually install and construct the entire design. It is recommended that the total fee for design services be separated into (1) a retainer fee, (2) a partial completion fee, and (3) a final comple­tion fee. Frequently, most of the design time is spent in this phase, and there­fore it may show a substantial dollar amount. This amount may vary from 40 percent to 60 percent of the total design fee. Regardless of which payment system is used, be specific about how much needs to be paid when. The construction of these structures requires additional drawings in order to provide the contractor with necessary information to build them. The first meeting is the one already discussed in this chapter. Approximate due dates will usually suffice. It is rec­ommended that the offer made in the proposal be open for acceptance for a limited amount of time, such as 30 days. It is similar to “earnest money” that a person pays to re­serve a specific item for later purchase. Typically, there are three meetings with the clients. Time Schedule The proposal should identify when (1) work on the design will begin, (2) the preliminary plans will be completed, and (3) the master plan will be completed. It is also recommended that the designer identify those things that are not part of the contract.