As I was pondering topics for this article, a colleague suggested I address Letters of Agreement (LOA) and the rights that designers have to protect themselves. I was immediately struck by one of the most fundamental prerogatives that a designer has; the right not to do business with a potential client. Understandably, even successful designers are inclined to accept as many projects as possible, never quite sure when the next will come in or if the workload will continue (economics, natural disasters, divorce, to name just a few realistic concerns). This position of need directly influences one’s ability to fully negotiate for the best deal possible.

I believe that we come from a culture of a win/lose mentality wherein one person gains more from a negotiation and another person gains less. There are other alternatives including win/win and no deal at all. Truthfully, if more people thought win/win and were willing to do a "no deal", then I think that there would be much better communication. Why is this?

In order to think win/win, it is necessary to fully listen to another person's needs and intentions before explaining our expectations. And, if both parties enter into a negotiation with the understanding that both sides must feel satisfied or that no deal will be struck, it is highly probable that everyone will come to the bargaining table openly and honestly.

When applying this to a design transaction, it is easy to oversimplify the situation and say that a client wants a well designed space and that the designer wants cash in exchange. Many other elements come into play including personal goals, outside influences, budget, timing, and perceptions, to name a few. What is important to one person may not be to another. Does this seem obvious? Perhaps. But in the review of hundreds of agreements every year, I see the same verbiage over and over and realize that professionals are trying to make the same rules apply to every client, including how they charge for services and product. A truly effective letter of agreement needs to be the culmination of many conversations and only after a deep understanding of what a clients needs. Then, and only then, can it be tailored to their specific expectations and can both the designer and client be satisfied.

If you want to discuss this further or have your own contract reviewed, please call me directly at 646.541.7624.

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