Bathroom Renovation Design Fee
Last summer, we were referred to Binns for a bathroom renovation. We initially met with a designer in our home. We felt confident that he understood our budget for this endeavour. He assured us that he could design a bathroom that could fit within our budget. After a number of meetings, we felt confident that the designer understood and agreed that our design needs could be met within our budget. So, we paid a ‘Design Fee’ (retainer) of $2,500.00, based on ‘birds-eye’ concept designs and his verbal quote.
Over the next month, we met with him a number of times to make design decisions with us always asking about costs to stay within the budget. The following month, we met with him and discussed the quote, but we were very surprised to find that we were looking at a quote of $55,000 to $60,000. He informed us that because of choices we made in materials, fixtures, etc. that costs had escalated, which we could not understand as we had been so mindful of keeping costs down (despite considering a more expensive fixture line). We then made significant adjustments to some of the designs we had previously chosen. We left disappointed that things were changing.
In October, the designer presented the final quote to us. What we received was a one-page ‘Project Quotation’ which was almost $7,000.00 over budget (even after taking off a custom wardrobe). Moreover, another quote, which included pricing for alternate fixtures, turned out to be almost $10,000.00 over budget. We were not impressed, stating that we could not understand why the quotes were so far above budget (even considering the alternate fixtures).
We were quite frustrated. We explained that regardless of a change in the fixtures, the costs for this project had continued to escalate, and it appeared that little consideration on the designer's part was given to our budget. We stated that we were concerned that he had misled us about the projected costs for this project. We also stated that we would have expected him to offer us suggestions and design ideas that would keep us within out budget. He said that he would not be doing his job if he didn’t present us with all the options. We disagreed. We informed him that we had decisions to make and that we would be in touch. Not surprisingly, we did not hear from him again.
Although we appreciated the time the designer spent with us, we felt that the final quotes did not reflect the price or design aspects we had discussed at our first meeting. The designer had told us that he could complete our renovations within our budget. In reality, had we known that the designer was going to present a quote to us approximately $20,000. over budget, we would not have paid the design fee. The biggest frustration of all is that the designer has denied telling us that he could complete the renovation for $40,000.00 at our first meeting. He stated that “sometimes clients hear what they want to hear” and they think things are said. This was incredibly insulting to us as there was another person in the room who heard what he said when we first met to discuss the project.
Our frustration lay on various levels. First, we do not understand how a company can give an estimate that is obviously so far from a final quote and consider this to be an acceptable way to conduct business. Furthermore, the high cost of the design fee certainly puts pressure on clients to continue with the process, despite having reservations as it is difficult to walk away from $2,500.00, which we ultimately did. To walk away was a painful experience, and we felt that the true lack of transparency of the process and being told that we were mistaken about the costs by being told that “sometimes clients hear what they want to hear” was unprofessional on the designer’s part. That was the breaking point for us! We did not appreciate being accused of being untruthful and him denying what he did, in fact, say.
As per our request, one of the owners did contact us. However, after a lengthy conversation, he was not 'satisfied' that our recount of the events was accurate. He sided with the designer (a relative of his), the designer's version of the events, and he believed that they had done their job for the design fee. When asked about why his company did not provide more comprehensive quotes to clients before they pay the design fee, he stated that they chose not to do so because of the time involved in preparing a quote that might not lead to a purchase. He also made no effort to seek any sort of reconciliation (we requested at least half of the $2,500.00 back).
We informed him that this type of customer service needed to be shared with other potential clients – to warn them of Binns’ business practices. He said that he had no problem with that, as long as it was the truth, which it is!
- Approximate cost of services:
- $40,000.00
- What could this company do to improve their services?
- True transparency ensures that clients and designers have a mutual understanding of the expectations from each other in regards to design fees and verbal estimates/quotes. We felt that we were misinformed. We believed that we signed the agreement with an understanding from the designer about how much this would cost. Had we known the true cost, we would not have considered signing. We believe that Binns has an obligation to clients to provide them with a comprehensive quote before asking them to pay a
- Any advice to offer fellow homeowners facing a similar project?
- Please consider carefully before signing with this company. There are many other reputable companies out there who will provide you with a comprehensive quote without requiring you to pay a
- Company Response
Binns regrets that this client was not fully satisfied with our initial services, and appreciates the time they have taken to inform us of their experience.
This experience, along with every client’s experience begins with an initial in-home consultation where various concepts and rough costing are discussed to determine the client’s desires. The clients are later presented with some initial concepts in respect to the discussions in their home.
After reviewing the potential range of costs, the pros and cons of each concept, the clients will decide which concept to pursue. Some will involve minimal construction and some may undertake some major changes. Given both options, some clients will choose the more elaborate option even after being informed it may exceed their initial budget. Some will choose to pursue the more cost effective route if it best suits there needs. Ultimately, the client is given the best options for the space and is able to choose the option they feel best suits their needs and budget constraints.
Clients are then given an option to proceed with a design fee which will be credited towards their renovation. Otherwise, the design fee will pay for the time and efforts of a designer who normally provides over 10 hours of consultation, and for the design staff who prepare various plans and perspective drawings, as well as various administrative costs. The process includes various quotes and design revisions. These are undertaken to help the client fulfill their wishes as close to their budget as possible, while still providing an exceptional arrangement of goods and services. This case was no exception.
We wish we were able to offer everything this client had requested for the budget they had anticipated. We regret if there were any miscommunications throughout our relationship, as it is in our best interests to communicate design and budget details with every client.
We still welcome the opportunity to discuss further options with this client to achieve a renovation within their budget. Again, we regret that this client was not able to experience the full array of professional services and products that we provide after purchase, as we are confident that they would have had a better experience.