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FF&E procurement is a critical phase in delivering a successful interior design project. It involves sourcing, pricing, and managing the delivery and installation of furniture, fixtures, and equipment (FF&E items) to meet the design specification and project timeline. For interior designers, this stage is both creative and operational, blending aesthetic judgement with logistical planning. Nevertheless, structuring procurement fees remains a sensitive issue and one best approached from a strategic and informed angle.
Designers are increasingly expected to justify their costs, align with the overall project budget, and ensure full transparency when procuring. This often leads to the discussion about whether or not the designer is procuring as agent or as principal. With the right approach, this process becomes an opportunity to build trust, demonstrate professionalism, and negotiate fair compensation. A clearly defined procurement process also reduces risk, improves vendor relationships, and enhances the quality of the design experience for all stakeholders.
FF&E projects are rarely straightforward. They involve multiple suppliers, product specifications, detailed budgeting, and precise scheduling. Designers need to juggle supplier/vendor lead times, track purchase orders, coordinate delivery and installation, and ensure that each space is furnished to the client’s expectations and the agreed aesthetic. This makes the procurement process for FF&E both commercially sensitive and operationally demanding.
Clients commissioning FF&E projects - particularly those at the luxury end of the spectrum - demand visibility over each item’s pricing, sourcing, and delivery schedule. As designers often act as agents of the client in this procurement process, financial transparency is essential. A well-documented process for FF&E ensures accountability, aids cost control, and meets client expectations, while demonstrating that the client is receiving all of the trade discounts to which they are entitled.
Transparent pricing and procurement structure also help avoid disputes, support VAT recoverability, and demonstrate the quality of your design service. Clients want to understand what they’re paying for, and how each decision adds value to their space. For high-net-worth individuals, developers, and commercial clients, transparency is now expected to be a built-in function, not optional nice-to-have.
Aligning your fee structure with the project objectives helps ensure mutual satisfaction and enables designers to generate potentially significant revenues. The procurement involves sourcing the right products, keeping an eye on vendor lead times, and securing cost savings where possible - this involves wearing a number of different hats. Agreeing on a fair remuneration model motivates the designer to deliver quality and value, while also allowing the client to feel that budgets are being respected.
Equally, a well-negotiated structure permits the designer to deliver FF&E within the agreed cost range, while earning a fair margin for their time, sourcing expertise, and project management. It ensures that incentives are aligned and avoids the chance of awkward conversations mid-project.
When timelines are tight, and the scope of work includes sourcing, installation, and detailed specification management, clients must have confidence in your ability to track and deliver. Financial clarity builds that trust. It also supports auditability and provides a structured way to address any issues that arise.
Clear documentation and structured payments help designers establish themselves as trustworthy professionals who understand the commercial requirements of project delivery. For large or complex FF&E procurement processes, this professionalism is a differentiator.
Structuring procurement fees isn’t just about getting paid - it’s about designing a process that supports transparency, operational control, and budget alignment. The following models are widely used across FF&E procurement projects and work best when underpinned by a secure third-party procurement account.
Here, the designer agrees a fixed percentage fee based on the cost of each FF&E item procured. Supplier invoices are paid directly by us through the FF&E Procurement Account; a matching percentage is moved into the designer’s balance, ready for them to invoice us for reimbursement.
Example:
This model is straightforward, scalable, and ensures that your fee is directly linked to your sourcing work. It is particularly useful where the project includes a wide range of items from different vendors and requires strong cost tracking. Sometimes, however, clients consider there to be a tension between your obligation to get them the best possible price (as their agent), and the fact that you get paid more if the overall cost is higher - those conversations will often lead to one of the following options being adopted.
In this structure, the procurement fee is set in advance based on the estimated budget. As items are procured and ordered, the designer receives proportional payments to the agreed fixed procurement fee. This allows clients to control total cost exposure while ensuring the designer is compensated progressively.
This model helps manage expectations on both sides and can be ideal when working with large commercial spaces, hospitality FF&E projects, or clients who prefer fixed budgets. It provides cost certainty and frees designers to focus on delivering value across the full specification.
While clients get cost-certainty, however, in the event that they decide to reduce the FF&E procurement budget they will end up paying a greater overall percentage than they would have done on a percentage-based fee.
This is similar to the percentage-based model, but with a maximum limit on total procurement fees. Once the cap is reached, further payments to suppliers continue, but the designer does not receive additional procurement compensation. This protects the project budget while recognising the scope of work - it also means that clients can upgrade their selections and choices during the project without increasing the cost of the procurement fee.
Caps can be useful when managing large FF&E budgets where the client wishes to limit procurement fees to a defined percentage or flat amount, especially in projects with long timelines or phased installations. Care should be taken by designers, however, to ensure that the scope of the cap is clear - it may, for example, mean that any upgraded specifications won't increase the procurement fee, but that if there are additional items, additional vendors or additional works required by the designer, those would sit outside the cap and be chargeable as extras.
This is a more dynamic model, often adopted by very experienced parties, where the designer and client agree a final procurement cost for an agreed scope (the equivalent of a 'design and build' budget for construction works. This counts as a maximum cost to the client, but if the designer sources items below this agreed pricing, they retain the difference as their fee. It rewards sourcing efficiency and allows the designer to leverage vendor relationships to secure savings, whilst simultaneously offering cost certainty to the client.
Example:
This model is often favoured where designers have strong vendor networks and can achieve significant cost savings and the design has been evolved far enough that the client is comfortable with the quantity, quality and specifications of the agreed procurement items. It encourages creative sourcing and incentivises designers to find the best products at the best prices.
Particularly in high-value scenarios, clients can question the justification for an interior designer charging a significant percentage (often 20-30%) of the value of the items being procured as their fee. Generally, these tensions are created if the designer has not been effective in communicating the benefits to the client of having items procured on their behalf. We give a brief run-down here of some of the headlines:
Designers are responsible for planning the procurement schedule in line with the project timeline, sourcing appropriate items that meet the design specification and budget, negotiating terms with multiple vendors, placing accurate orders, monitoring lead times, managing supplier communications, processing payments, consolidating shipments, and arranging delivery to site. Each of these steps demands meticulous attention to detail and imposes a considerable administrative burden, which a properly structured procurement fee is intended to reflect.
Beyond logistics, designers also carry the commercial and reputational risk for ensuring that each item arrives as specified. They must verify that product finishes, dimensions, and performance meet the agreed specification; that materials match approved samples; and that substitutions or supplier errors are identified and resolved swiftly. If the wrong item is ordered or delivered late, it is often the designer who is held accountable. Procurement fees help offset these risks and ensure designers are fairly compensated for carrying responsibility over items they neither manufacture nor directly control.
Clients should be able to see precisely how funds are allocated across items, suppliers, and fees, with no ambiguity as to what the designer is being paid for. This clarity strengthens trust, helps avoid misunderstandings, and aligns with expectations of professional accountability - particularly on high-value projects where financial scrutiny is high. There is a cost to delivering this, from managing the documents and payments to drafting and updating reports on an ongoing basis.
Third-party procurement accounts provide a full audit trail of every transaction, supplier payment and fee disbursement. This ensures that all activity can be traced back to source documentation, with clear reconciliation against the project budget and procurement schedule. Auditability not only protects both client and designer but also supports VAT compliance, reporting obligations, and smooth resolution of any queries long after the project has completed.
For the interior designer to hold client funds is inappropriate for all but the smallest of FF&E projects. A managed procurement account provides neutrality, clarity, and reduces the designer’s exposure. It ensures funds are allocated to the right suppliers and disbursed according to pre-agreed terms. In many cases, it will avoid the need for the interior designer to become regulated to carry out payment services, and will avoid the challenges of opening and maintaining client accounts with their bankers.
Using an independent structure also reassures clients that their funds are protected and being used solely for their project. This enhances the overall relationship and helps avoid future issues.
With agreed procurement terms, payments are released automatically to suppliers and designers. Every transaction is recorded, matched to a specific order, and reconciled against the overall procurement budget.
This supports timely delivery of goods and services, improves vendor relationships, and reduces administrative overhead. Designers can focus on managing specification, product quality, and schedule rather than chasing payments.
Using a dedicated account allows the designer to manage supplier orders, delivery schedules, and project timelines while staying within the client’s agreed terms. It removes the need for repeated approvals and supports orderly project execution.
Where installation schedules are critical, such as in hospitality or residential projects, having an efficient and pre-approved process saves time and reduces the risk of delay.
Clients investing in high-quality furnishings and fixtures expect a premium service. A third-party procurement process reflects the care and competence of your design studio.
It also provides a clear commercial boundary between the designer and the client's funds, which is particularly important in multi-phase projects or those involving significant bespoke items and specialist sourcing.
dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services.
All of our GBP escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
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