You have found your preferred designers, and approach them to set up your project team, hoping that this is the beginning of a long term relationship where each can learn to respect other members of the team, to work collaboratively to produce design solutions that will both win awards and increase your profitability. To your surprise the designers do not fall on you with open arms, but start to ask questions about your brand, your last project and how they are to be paid. Of course you have already chosen the architect, and have been disappointed by the fact that they have never done an hotel before, but they are good architects who have won awards for their other projects, so that’s all right then. However the second fee for the interior designers wasn’t in the budget so some hard negotiating will be called for. Then you discover that you can arrange things in different ways, unlike the architects who have convinced you that they are not allowed to vary from the fees guidelines laid down by their professional body.

Curiously it seems that some designers expect to be paid on the same basis as the architects – that is with a professional fee paid in stages that relate to the progress of the job. They expect to be paid by you directly, but this does make them a part of your project team and makes them answerable to you. It also gives you the chance to build a relationship with them for the long term benefit of your company.

As an alternative you find there is a process called novation, which enables the designer’s fee to be hidden within the builders budget – handy if you don’t want someone to realise you have not budgeted for an interior designer. With novation the contractor pays the designer and includes their fees in his bills. The drawback is that he expects a mark-up on the fee for his administration, and the designer feels that their responsibility is to the builder not the client directly. Hmm, lots of potential problems there then – especially when the builder wants to use a cheaper moulding to save money, or tile rather than marble. Maybe it is better for the designer to be a part of your team rather than the builders?

There is another way, you discover. The designer will undertake all the supply. You don’t pay a professional design fee, but the designer takes a commission on everything that goes into the hotel. In some countries this is a standard way of working and commission rates of 40% or 50% are not unusual. Sometimes the design service is a part of a manufacturing outfit and can guarantee delivery periods and quality because everything is ‘in house’. There are draw backs sometimes when something you like cannot be supplied through this arrangement, or only comes at a price you know from experience you can better elsewhere. Of course some designers on a professional fee will also undertake the supply in union with your house team – for an additional defined fee.

Either of these routes can provide a good design service, and leave you with your team and hotel intact at the end of the process. What is not so comfortable is when you discover that the designer you are using who quoted a low low fee is also taking a commission payment from each supplier and contractor. The potentials for conflicts of interest are clear.

Keep in your mind that you are looking to build a creative team to advance your brand. Think of your longer term goals, and ask what relationship you want with your designers. Choose your team accordingly. But do it with your eyes and mind open, knowing the look you want as a part of your brand implementation.

Think brand recognition and consistency in design style and solution. Think evolution not revolution.

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