Interior designer Renée Biery is challenging her peers to recognize the value of construction management and turn it into a deliberate revenue stream. At a recent seminar, Biery asked a crowd of designers how many of them are doing construction management, and the vast majority raised their hands.
Biery, founder of deVignier Design, noted that designers are already doing the work, but not billing for it. They review contractor bids, answer job site questions, coordinate trades, and solve problems, all while protecting their design intent.
Construction Management as a Revenue Stream
Biery’s seminar, “Construction Management: Your New Revenue Stream,” aimed to educate designers on how to capitalize on their existing skills. She emphasized that homeowners benefit when designers take on construction management, as they bring a unique understanding of how people live and interact with spaces.
Designers know the intimate details of homeowners’ lives, from their daily routines to their storage needs. This knowledge is essential in creating spaces that meet homeowners’ needs, but designers often downplay the value of their skills.
Biery encouraged designers to charge appropriately for construction management, which can help diversify revenue streams and demonstrate value in a world where AI chatbots can provide instant “interior design” solutions.
In her own firm, Biery said that about 70% of revenue comes from construction management, while 30% comes from “pure decorating projects.” She noted that designers can essentially double their fees by adding construction management to their design services.
Biery advised designers to charge the same hourly rate for construction management as for design and to present a total construction management fee to clients, rather than breaking down hourly rates and estimated hours.
The Importance of Scope of Work
Biery distinguished between construction management and consulting, noting that the former involves owning the process, while the latter is simply answering questions. Construction management involves running preconstruction meetings, clarifying project scope, coordinating trades, and making real-time decisions on-site.
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Biery emphasized the importance of defining a clear scope of work, which should be concrete, focused, and concise. She cautioned against using broad or subjective wording and advised designers to look at contract proposals from architects and general contractors for guidance.
When defining scope of work, Biery recommended using a list of bullet points with “zero adjectives” and avoiding attachments of dollar signs to line items. Instead, designers should price the project in total and use addendums to adjust the scope of work as needed.
By presenting a clear and serious scope of work, designers can demonstrate their value to homeowners and increase their chances of getting paid for their construction management services.
As Biery noted, the key to successful construction management is to make the homeowner understand the value of the designer’s work. There’s your first win.” The importance of a well-defined scope of work cannot be overstated, as it sets the foundation for a successful construction management project.
By focusing on construction management and presenting a clear scope of work, designers can establish themselves as essential partners in the construction process.
Biery cautioned designers to check regulations in their state and the states in which they work to determine the best language to use to describe their construction management work.
Implementing Construction Management
Biery encouraged designers to start small, by offering construction management services to existing clients. This can help designers build their skills and confidence, and can also help to establish a reputation as a reliable and competent construction manager.
