Project Compensation Chapter 6- Project Compensation and Design Fees The chapter is an in depthdiscussion about the fees paid to the designer and how it is calculated which is called the billing rate and hour it is calculated in different ways such as fixed-rate method, a value-oriented fee method (Piotrowski 90). In discussion are the advantages and disadvantages of this hourly fee method to the designers. It is important to have a procedure for calculating the designer fees rather than deal with estimates as these can change and be affected by factors such as budget expectations and other overhead expenses. The hourly fee method of billing does not put so much into the experience of the employee which is a downside into motivating employees to have experience to work. It simply focuses on the kind of service provided before pay is issued. A fixed fee account provides a fixed fee for the services being offered and which requires an in depth knowledge of the service being provided. This is only effective for experienced designers who are aware of their services (Piotrowski 100). In a cost plus percentage markup method, the customer is the one who benefits more as they are passed all the discounts from the suppliers leading to low cost of purchase. This however works only on the residential clients whose purchases are relatively smaller. Square foot method is payment by the number of square foots meaning the more the square foots the more the pay. It is effective in commercial industries as it boosts productivity and motivates employees to work even harder. The best method from all the methods above and others is the combination method that combines several of the methods taking into account experience and market among other factors (Piotrowski 105). Chapter 7- Design ContractsAny service provided in the field of design demands a contract with a list of specifications necessary to provide guidance. The contract requires several basic requirements which have to be followed if it is to be considered valid. These elements include an offer, counteroffer and acceptance where the terms of the design are discussed and the price is provided. It is concluded by mutual agreement and a letter to seal the deal and provide physical evidence of the deal (Piotrowski 112). The contract is a perfect way to not only protect the interests of the client but they protect the work of the designer as well from frauds.A statute of frauds is provided which provides guidance on the frauds that can be prosecuted. If the contract document lacks names such as that of the client and address as well as a clear description of the project being undertaken by the designer on behalf of the client, the charges for the whole design project, ownership and publishing rights and signature from all parties, then it is considered to be a fraud and cannot be admissible in a court of law in case of any contract breach (Piotrowski 117). Disputes are bound to arise due to the breach of the terms of the contract or issues in performance of the designer (Piotrowski 150). It is therefore necessary to have a third party to solve the disputes before the situation escalates and need to be taken to court. Work CitedPiotrowski, Christine. Professional Practice for Interior Designers. New Jersey: John Wiley amp. Sons, 2013. Print.
Summary and Critical Analysis Project Compensation and Agreements