What Should an Interior Design Contract Include?
Updated 18 August 2026 · D Woods Villa Interior
A workable interior contract defines scope by specification rather than description, ties payments to completed stages, states a handover date with a delay consequence, and lists warranty terms and exclusions in writing. Most disputes in this industry come from documents missing one of those four.
The fourteen clauses
1. Scope, by specification
Not "modular kitchen as per design" but the actual specification: material grade, hardware brand, finish type, dimensions. If a line can be satisfied by two different products at two different prices, it is not yet a scope.
2. Itemised commercial schedule
Item, specification, quantity, unit, rate, amount. Attached to the contract as an annexure, not referenced loosely.
3. Explicit exclusions list
What is not included, stated plainly. Electrical rework, painting, debris removal, society deposits, plumbing shifts and loft shutters are the usual omissions. A contract without an exclusions list has a scope you cannot verify.
4. Handover date with a delay clause
A date without a consequence is an intention. A reasonable clause names the date and a penalty per week of delay, capped at a percentage of contract value, with carve-outs for force majeure and client-caused delay. Most firms accept this when asked before signing.
5. Stage-linked payment schedule
Payments release against completed stages, not calendar dates. Design approval, material procurement, installation, handover. Date-linked payments can leave you fully paid on a half-finished project.
6. Retention against snagging
Five to ten percent held back until the snag list is closed. This is the single most useful clause in the document and the one most often absent. Once the final payment is released, response times change.
7. Change order procedure
Any variation to be priced and approved in writing before work proceeds. Verbal changes on site are how a ₹7 lakh project becomes a ₹9 lakh project without anyone deciding it should.
8. Warranty terms and exclusions
What is covered, for how long, and what voids it. "Ten year warranty" typically covers manufacturing defects in modular work only, excluding water damage, normal wear and third-party interference. Get the actual terms attached.
9. Material approval process
You approve samples before bulk procurement. Colour, finish and texture vary between batches, and approving from a catalogue image is not the same as approving the material.
10. Site access and working hours
Whose responsibility the society NOC is, what hours apply, and what happens to the timeline if the society restricts access. This prevents an entirely predictable argument.
11. Liability for damage
Who pays for lift damage, water leakage into a neighbouring flat, or damage to common areas. Ordinarily the contractor, but it should be written rather than assumed.
12. Debris removal and site handover condition
Removal at the contractor's cost, following municipal rules, with the flat handed over cleaned. Otherwise this arrives as a final invoice you did not expect.
13. Termination terms
What happens if either side wants to stop. What you owe for work completed, what happens to advances, what happens to materials already procured.
14. Dispute resolution
Jurisdiction and an escalation path. Consumer disputes in India can be filed through the National Consumer Helpline, but a clearly written contract almost always makes that unnecessary.
The two most commonly missing
Retention against snagging. Without it you have no leverage at exactly the moment you need it. Ask for 5 to 10 percent held for 15 days after handover.
Written change orders. Without this, every site conversation becomes a potential invoice. Insist that no variation proceeds without a priced written approval.
What a fair contract looks like from the other side
A contract that protects only you will not be signed, and should not be. Reasonable terms in the contractor's favour include payment within a stated number of days of each milestone, timeline extension where the client delays approvals, storage or idling charges if the site is not available as agreed, and a defined limit on free revisions.
Being fair about this matters. A contractor working under one-sided terms manages risk by cutting elsewhere, and you will not see where.
Frequently asked questions
What should an interior design contract include?
Scope by specification, an itemised commercial schedule, an explicit exclusions list, a handover date with delay clause, stage-linked payments, retention against snagging, a written change order procedure and attached warranty terms.
What is a retention clause and why does it matter?
It holds back 5 to 10 percent of the contract value until the snag list is closed. It is the single most useful clause in the document because it preserves your leverage at the exact point you need it.
Should an interior contract have a penalty for delay?
Yes. A handover date without a consequence is an intention rather than a commitment. A reasonable clause sets a weekly penalty capped at a percentage of contract value, with carve-outs for force majeure and client-caused delay.
How should payments be structured?
Against completed stages rather than calendar dates: design approval, material procurement, installation and handover. Date-linked payments can leave you fully paid on a project that is only half finished.
What terms are fair to the contractor?
Payment within a stated period of each milestone, timeline extension where the client delays approvals, idling charges if the site is unavailable as agreed, and a defined limit on free design revisions.
Our team wrote this. We came out of the large organised brands and now run an independent practice with a production unit in Sector 4, Greater Noida West.
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