What method of payment for interior design services poses the least financial risk to the...

A fixed design fee provides a predetermined amount agreed upon upfront, ensuring the designer is paid regardless of project duration or unforeseen variables, minimizing financial risk. A time-based fee (A) depends on hours worked, risking non-payment if hours exceed client expectations. A value-based fee (C) ties payment to perceived project value, which is subjective and uncertain. A retail sales-based fee (D) relies on product sales, exposing the designer to market fluctuations. The fixed fee’s predictability makes it the safest option for the designer.

Verified Answer from Official Source:B - fixed design fee

"A fixed design fee poses the least financial risk to the designer, as it establishes a set payment amount independent of time or project variables." (NCIDQ IDPX Study Guide, Section 5: Professional Practice)

Explanation from Official Source:The NCIDQ emphasizes that fixed fees provide financial stability, protecting designers from scope creep or client disputes over hours or outcomes.

Objectives:

Evaluate payment methods for design services (IDPX Objective 5.1).