This discussion addresses the peculiar situation of Filipinos living overseas intending to engage an interior designer in the Philippines for the renovation or repair of their condominium units. Parties should be on the lookout for key factors that define their limited engagement, possible abuse of trust, and delays to achieve project completion.
The market
Filipino immigrants and overseas contract workers comprise a sizable market for real estate development. The current number of condominium buildings under construction in the National Capital Region, the cities of Southern Philippines (Cebu, Davao & Iloilo), and North of Metro Manila (Bulacan & Pampanga) are on an upward trajectory.
Condominiums are purchased as investments with the goal of generating income via leasing or resale upon the appreciation of their market value. Owner-occupied units indicate a purchasers’ preference to use rather that sublet.
Design after purchase
Completed condominium units are usually ready for occupancy upon completion of the equity payment and approval of the loan application or payment of the full price. But at turn-over, a condo unit is not yet fully designed and ready for occupancy. Unless indicated in the contract of sale (or contract to sell), the unit is usually delivered empty. Apart from the basic amenities, there are no beds, furniture, or appliances. Walls may need color enhancement. The idea is to move into a unit that is comparable to the glossy promotional material or live in a space according to the buyer’s taste. Owners seek the help of interior designers to embellish, decorate, and make their condominium units more palatable to their senses.
A regulated activity
It is important for condominium owners intending to engage a professional interior designer to know the right and obligations of all the parties to the transaction. Interior design in the Philippines is a regulated activity. It is covered by Republic Act No. 10350 also known by its short title as the Philippine Interior Design Act of 2012.
As a regulated activity, it means that the practice interior design is not open to anyone. Among others, a person purporting to make plans, specify, select, and organize surface finishes or suggest a variety of choices for furniture, furnishings and fixtures may be said to be engaged in interior design. Under the Scope of the Professional Practice of Interior Design:
The practice of interior design encompasses the act of planning designing, specifying, supervising and providing general administration and responsible direction to the functional, orderly and aesthetic arrangement and enhancement of interior spaces.
Any person engaged in this activity is required by law to be registered with the Professional Regulation Commission (PRC), the government body tasked to ensure that membership in the interior design profession is limited to technically competent individuals who also passed the stringent character test.
The law seeks to protect condominium owners intending to suit, enhance and meet the intended functionality, movement, or character of their unit. Like any other legal protection, the benefits that the law offers have to be claimed. Property owners must be conscious of the need to have a written contract and be aware of its contents. Owners living offshore, OFWs and foreign investors alike, generally deal online. They must have some assurance that they are speaking to an accredited interior designer with a current registration to practice the profession.
Common issues
Complaints abound from disgruntled and frustrated property owners who feel either conned or betrayed by interior designers. On the other hand, interior designers who are meticulous in every detail to satisfy a demanding customer still reap unwelcome feedbacks. Situations like these are not uncommon but can be avoided.
An understanding of the basics of written contract and the context under which the contract must be read and understood may reduce the risk of uncertainty and prevent breeding hostility.
First stop: Establishing identity
Property owners should begin to look at the basics of a written contract in dealing with interior designers. The starting point would be to ascertain the identity and qualification of the other person. This could be done by requesting, at the first meeting of the parties, the production of an acceptable evidence of identity and proof of current registration. A condominium owner should be certain of the qualifications and eligibility of a person to practice interior design. On the other end, a registered interior designer should be confident of his or her ability to practice the profession.
Contents of a written contract
Contractual terms must be fair and predictable. Parties are better off starting at a position of transparency, fair bargaining, and reasonable expectations. Standard contractual content could include:
- A representation that the interior designer is registered and legally allowed to practice the profession;
- The location and description of the condominium unit;
- The beginning and end date of the project;
- Price estimate of the service and materials;
- A schedule of furnishings, fixtures, and appliances;
- Progress report and schedule of payments;
- Notice to parties in cases of possible delay in the completion date;
- Remedies of parties should there be a breach of the terms;
- Dispute settlement mechanisms avoiding as much as possible the submission of a disagreement or conflict to lengthy court processes.
Preparing a quote
A quotation of work must be differentiated from a contract. Quotes commonly originate from interior designers. To save time from repeated inquiries and lengthy discussions, interior designers should have a standard quote for a standard work. It is important to communicate to a potential customer what a budgeted amount could achieve.
A quote is not a contract but merely an indication of willingness to enter a contract if the price stated aligns with the proposed work. Add-ons (such as prime costs and provisional sums) could be further negotiated if the parties so wish. Once this process is done and dusted, a formal written contract should follow.
Dealing with variations
Variations are to be avoided. Not that the parties are precluded from altering their arrangements and introducing new ideas to develop the property, but they are encouraged not to veer too far from the original agreement. During the execution of the work, parties should focus more on the progress of the project.
In this context, a written agreement is not governed solely by standard contract law but viewed under the law applicable to a regulated profession. A fair and transparent contract promotes trust between legitimate interior designers and condominium unit owners. The interior design profession must be consciously sustained being an activity that is highly valued by the members of the community and a key driver of property development.
Steps to take
For condominium owners intending to renovate their unit, legal advice must be sought before proceeding with the project. The money expended is difficult to recoup if the project goes south. For practitioners of interior design, a contract must be properly drawn to protect the integrity of their practice. A written agreement is the law that governs the conduct of the parties until project completion.
DISCLAIMER: This article should not be taken as a legal advice and not to be relied on as the basis of any action or decision. The views and opinions expressed here do not reflect the views and opinions of the organization to which the author belongs. Readers should seek the services of a legal professional before making any action or decision on any matter discussed in this article.
