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Professional Design Services Agreement

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PROFESSIONAL DESIGN SERVICES AGREEMENT

This Professional Design Services Agreement (the "Agreement") is made and entered into as of Effective Date: by and between Designer Name: with principal place of business at and Client Name: with principal place of business at . Designer and Client each a "Party" and collectively the "Parties".

RECITALS

WHEREAS, Designer is engaged in the business of providing design and creative services, including but not limited to visual design, branding, user interface, and related deliverables; and

WHEREAS, Client desires to retain Designer to perform certain design services described herein and Designer is willing to perform such services on the terms and subject to the conditions of this Agreement; and

WHEREAS, the Parties intend that such services, deliverables, payment, intellectual property ownership, confidentiality and allocation of risk be governed by this Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows:

1. SERVICES

1.1 Scope. Designer shall provide the services and produce the deliverables described in the Scope of Services attached to or set forth in this Agreement. The Scope of Services shall include specific tasks, milestones and acceptance criteria.

2. COMPENSATION AND PAYMENT

2.1 Fees. Client shall pay Designer fees as set forth below and in any attached fee schedule. All fees are exclusive of taxes which shall be paid by Client.

2.2 Expenses. Client shall reimburse Designer for reasonable pre-approved out-of-pocket expenses incurred in connection with performance, including third-party production costs. Reimbursement requires submission of receipts.

3. CHANGES; CHANGE ORDERS

3.1 Any change in the scope of services, deliverables, schedule or fees shall be made only by written change order signed by both Parties. Designer shall not be obligated to commence work on any requested change until the Parties have agreed in writing on any adjustments to fees and schedule.

4. TERM AND TERMINATION

4.1 Term. The term of this Agreement shall commence on Effective Date and continue until completion of the Services or earlier termination as provided herein.

4.2 Termination for Convenience. Either Party may terminate this Agreement for convenience upon written notice to the other Party provided at least days' prior notice. Client shall pay Designer for all Services performed and expenses incurred through the effective date of termination.

5. DELIVERABLES AND ACCEPTANCE

5.1 Deliverables. Designer will deliver the deliverables described in the Scope of Services. Deliverables are mutually agreed upon formats and specifications.

5.2 If Client does not provide written notice of rejection within the Acceptance Period specifying material deficiencies, the Deliverable will be deemed accepted. Designer shall correct any material deficiencies discovered within the Acceptance Period at Designer's expense.

6. INTELLECTUAL PROPERTY

6.1 Ownership of Deliverables. Subject to full payment of all fees due and payable hereunder, Designer assigns to Client all right, title and interest in the final Deliverables created pursuant to this Agreement and delivered to Client, excluding Designer's pre-existing materials and third-party materials.

6.2 Pre-existing and Third-Party Materials. Designer retains ownership of pre-existing materials, tools, concepts and know-how used or developed in connection with the Services. Designer grants Client a perpetual, non-exclusive license to use Designer's pre-existing materials to the extent incorporated in the Deliverables. Client shall secure any necessary rights for third-party materials and reimburse Designer for licenses if required.

7. CONFIDENTIALITY

7.1 Definition. "Confidential Information" means non-public information disclosed by one Party to the other relating to business, products, services, financial information, trade secrets or other proprietary information.

7.2 Obligations. Each Party shall: (a) use Confidential Information solely to perform its obligations under this Agreement; (b) restrict disclosure to employees, contractors and advisors who need to know and who are bound by confidentiality obligations no less protective than those herein; and (c) exercise at least reasonable care to protect Confidential Information.

8. REPRESENTATIONS AND WARRANTIES; DISCLAIMERS

8.1 Designer represents and warrants that Designer will perform Services in a professional and workmanlike manner consistent with industry standards. Designer does not warrant that Deliverables will be error-free or that Client's use of Deliverables will achieve Client's intended results.

8.2 EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, DESIGNER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

9. INDEMNIFICATION

9.1 Designer shall indemnify, defend and hold harmless Client from and against any third-party claim arising out of a claim that the Deliverables, as delivered and used by Client hereunder, infringe any United States patent, copyright or other proprietary right, provided that Client gives Designer prompt written notice, cooperates in the defense and permits Designer to control the defense and settlement of such claim. Designer's obligations do not extend to infringements arising from Client modifications, Client-provided materials, or combinations with third-party products.

9.2 Client shall indemnify, defend and hold harmless Designer from and against claims arising from Client-provided content, materials or Client's use of the Deliverables.

10. LIMITATION OF LIABILITY

10.1 EXCEPT FOR A PARTY'S INDEMNIFICATION OBLIGATIONS OR A PARTY'S BREACH OF CONFIDENTIALITY OR WILLFUL MISCONDUCT, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT EXCEED THE TOTAL AMOUNT OF FEES PAID BY CLIENT TO DESIGNER UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

10.2 IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOSS OF PROFITS, LOSS OF BUSINESS, OR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

11. INDEPENDENT CONTRACTOR

Designer is an independent contractor. Nothing in this Agreement creates an employment, partnership, agency or joint venture relationship between the Parties. Designer is solely responsible for payment of all taxes and withholdings relating to compensation under this Agreement.

12. INSURANCE

Designer shall maintain commercial general liability insurance and professional liability/errors & omissions insurance in commercially reasonable amounts. Upon request, Designer will provide certificates of insurance evidencing coverage.

13. NOTICES

All notices, consents and other communications required or permitted hereunder shall be in writing and delivered to the addresses below by hand, nationally recognized overnight courier, or certified mail, return receipt requested, or by email with confirmation of receipt where provided.

14. AMENDMENT; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by the Parties. No failure or delay by a Party to exercise any right shall operate as a waiver of that right.

15. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

16. ENTIRE AGREEMENT

This Agreement, including any attachments, exhibits and Schedules, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, negotiations and communications, whether written or oral.

17. SEVERABILITY

If any provision of this Agreement is determined to be invalid or unenforceable, such provision shall be reformed only to the extent necessary to make it enforceable, and the remaining provisions shall continue in full force and effect.

18. COUNTERPARTS; ELECTRONIC EXECUTION

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures delivered by electronic means shall be binding.

Designer:

By:

Date:

Client:

By:

Date:

Enter text✕

What a Professional Design Services Agreement Covers

A Professional Design Services Agreement is a contract that defines the relationship between a designer (architect, engineer, graphic or product designer) and a client for specified design work. It establishes scope of work, deliverables, schedules, fees, intellectual property ownership, acceptance criteria, change-order procedures, insurance and liability limits. The agreement also allocates responsibilities for permits, third-party approvals, and subcontractors, and it sets terms for termination and dispute resolution so both parties understand expectations and remedies if performance or payment issues arise.

Why a Clear Agreement Matters for Design Projects

A well-drafted Professional Design Services Agreement reduces disputes, clarifies deliverables, and protects intellectual property and payment rights. It sets measurable acceptance criteria, defines change-order procedures, and limits liability, making project execution and invoicing more predictable for both parties.

Why a Clear Agreement Matters for Design Projects

Who Typically Uses This Agreement

Use the agreement to set project expectations early, reduce scope disputes, and create enforceable payment and IP remedies without repeated negotiation.

  • Independent designers and small studios who need clear payment and IP terms for freelance engagements.
  • Architecture and engineering firms contracting with owners or builders on defined projects.
  • Developers, product teams, and marketing departments commissioning creative or technical design work.

Core Components to Include in the Agreement

A complete Professional Design Services Agreement organizes obligations and protections into discrete sections so parties can find rights and remedies quickly during the project lifecycle.

Scope of Work

Precisely list tasks, deliverables, technical specifications, and exclusions so the expected outcomes are measurable and defensible.

Schedule

Define milestones, delivery dates, and testing or review periods, plus remedies for missed deadlines and expedited delivery options.

Compensation

Specify fees, billing schedule, reimbursement of expenses, retainers, late-payment interest, and invoicing procedures for clarity and enforcement.

Change Orders

Establish a formal written change-order process that captures scope changes, schedule impact, and fee adjustments before work continues.

Intellectual Property

State whether copyrights, deliverable ownership, or licenses transfer on payment, and note any retained rights for portfolios or reuse.

Termination and Liability

Include termination triggers, notice requirements, final accounting, warranty disclaimers, limitation of liability, and indemnity terms.

Step-by-Step: Completing and Executing the Agreement

Follow a clear sequence to draft, review, approve and execute the agreement to avoid rework and delays.

  • 01
    Draft: Populate parties, scope, fees, and schedule before sharing for review.
  • 02
    Review: Circulate to legal and finance for changes and risk acceptance.
  • 03
    Negotiate: Resolve change orders, IP terms, and liability caps in writing.
  • 04
    Execute: Have authorized signatories sign and date the final agreement.

Digital Workflow Settings to Configure

Configure your online workflow so document routing, authentication, and notifications match the project and compliance needs.

Field Configuration
Signer Order Sequential or parallel routing based on approval flow
Authentication Email link, SMS code, or stronger methods for high-risk projects
Notifications Enable reminders and delivery receipts for signers
Template Save a reusable template with conditional fields for common clauses

Typical Routing and Acceptance Flow

An efficient eSignature process reduces turnaround time and ensures auditability from upload through final delivery.

  • Upload Document: Sender uploads the executed agreement draft to the platform.
  • Place Fields: Add signature, date, and initial fields plus conditional acceptance checkboxes.
  • Invite Signers: Send email or SMS invites with explicit signer roles and order.
  • Complete & Archive: Signed copies and audit trails are generated and stored securely.

Technical and Integration Considerations for eSigning

Ensure your chosen provider supports required compliance frameworks and preserves signed originals for the retention period specified in the agreement.

  • Formats: Support for PDF and DOCX uploads
  • Integrations: Connect with CRM or project systems like NetSuite
  • Audit Trail: Capture IP, timestamp, and action log

Common Dates and Payment Deadlines to Track

Document and calendar the agreement's key dates to reduce disputes and maintain compliance with payment and retention obligations.

Effective Date:

Date when obligations and warranties commence.

Milestone Due Dates:

Specific delivery dates tied to payments or approvals.

Invoice Due Date:

Net 30, Net 15, or other agreed payment window.

Acceptance Period:

Time allowed for client review and formal acceptance.

Warranty Period:

Duration for corrective work after final delivery.

Project Milestones from Proposal to Closeout

Use this milestone sequence to align contract events with invoicing and deliverable acceptance.

01

Proposal Acceptance

Client signs proposal and pays any initial retainer.

02

Design Deliverables

Designer submits deliverables per agreed milestones.

03

Review & Revisions

Client review period and revision rounds take place.

04

Final Acceptance

Client issues acceptance and final payment is processed.

Common Preparation Mistakes to Avoid

  • Vague scope descriptions that cause disputes about what is included and what counts as extra work.
  • Missing acceptance criteria or deliverable formats, which delay final approval and payment.
  • No change-order clause or informal verbal changes leading to unpaid work and contested fees.
  • Incorrect signatory names or unsigned pages that create enforceability questions during disputes.

Risks and Consequences of an Incorrect Agreement

Payment Disputes: Delayed or withheld payments
Scope Liability: Unexpected additional costs
IP Ambiguity: Loss of ownership or licensing rights
Breach Damages: Contract damages and legal fees
Regulatory Exposure: Noncompliance with professional licensing rules
Enforceability: Invalid signatures or missing authority

Security and Compliance Considerations for Digital Execution

Encryption In Transit: TLS 1.2/1.3
Encryption At Rest: AES-256
Certifications: SOC 2 Type II, ISO 27001
HIPAA Support: BAA available where required
eSignature Law: ESIGN and UETA compliant
Audit Trail: Tamper-evident logs retained

eSignature Pricing and Feature Snapshot

Vendor pricing and core feature availability vary; the table below shows typical starting price and common feature support across major providers.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Real-World Examples of Digital Execution for Design Work

These examples show how organizations used online signing to streamline approvals and collections without in-person meetings.

Optica Ventures — COO

Optica standardized templates and remote signing to reduce client turnaround.

  • The interface was simple for internal and external users.
  • Brian Fitzgibbons observed that ease of use improved client responsiveness and reduced administrative overhead for recurring design contracts.

Martin Properties — Founder

A property-focused design firm replaced paper approvals with mobile signing for site-related work.

  • Field staff signed onsite via mobile devices to capture approvals.
  • Tim Martin reported processing and executing documents online with full compliance and faster return cycles across projects.

Frequently Asked Questions and Troubleshooting

Answers address common legal and technical concerns when preparing, executing, and storing Professional Design Services Agreements.


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