Interior Design Agreement (Hong Kong)

An Interior Design Agreement in Hong Kong records the terms the parties accept and the commitments each makes to the other.

Hong Kong's Buildings Ordinance (Cap. 123) is the central regulatory framework governing all building works in the SAR. Interior design works that involve structural changes, additions and alterations (A&A works), or modifications to fire safety systems or building services require prior approval from the Buildings Department (BD) and must be supervised by an Authorised Person (AP) — a registered architect, structural engineer, or surveyor registered under Cap. 123. Interior designers who are not APs cannot independently submit building plans to the Buildings Department. The Minor Works Control System under the Buildings (Minor Works) Regulation (Cap. 123B) provides a simplified process for prescribed minor works — such as internal lightweight partitions, new openings in non-structural walls, and window replacement — that can be certified by registered minor works contractors without full BD approval.

Owners' Corporations (OC) and Deeds of Mutual Covenant (DMC) are critical factors in Hong Kong residential renovation projects. Most private residential buildings in Hong Kong are governed by a DMC — a constitutional document registered at the Land Registry that defines the rights and obligations of all owners and occupiers. The DMC typically specifies restrictions on renovation works, including prohibited structural alterations, noise and working hours limits (generally weekdays 7am–7pm or as stipulated by the OC), and requirements for prior approval by the OC's building manager before works commence. Interior design firms must be familiar with the DMC restrictions applicable to each project and advise clients accordingly.

The Copyright Ordinance (Cap. 528) vests copyright in interior design works — including concept drawings, space plans, material specifications, 3D visualisations, and furniture specifications — in the author (the ID firm or designer) as the first owner, unless a written assignment to the client is executed. In standard Hong Kong ID practice, the ID firm retains copyright in its design documents and grants the client a limited licence to use the designs for the specific project. If the client requires full copyright ownership, this must be expressly documented as a written assignment signed by the ID firm under Cap. 528.

The Hong Kong Institute of Interior Designers (HKIID) is the principal professional body for interior designers in Hong Kong, establishing professional standards and a Code of Professional Conduct. HKIID membership is a common credential signal in Hong Kong's ID industry. No GST or VAT applies to interior design services in Hong Kong — a significant advantage compared to Singapore (9% GST) and the UK (20% VAT).

An Interior Design Agreement in Hong Kong is needed whenever a property owner, tenant, or business engages an interior designer or ID firm to provide design services, whether for a full design-and-build project or a limited consultation engagement.

Residential renovation of a new flat: when a Hong Kong homeowner purchases a new or second-hand flat and engages an ID firm for full renovation, the agreement must address the OC's renovation permit requirements, DMC restrictions on working hours and prohibited works, Buildings Department approval for any A&A works under section 14 of the Buildings Ordinance (Cap. 123), and the full scope of design and fit-out services. The renovation permit application to the OC building manager is typically handled by the ID firm or the main contractor.

Commercial office fit-out: companies leasing new office premises in Hong Kong — whether in Grade A commercial buildings in Central, Wan Chai, or Kowloon — engage interior design firms to create workplace environments aligned with their brand identity and functional requirements. The lease will typically specify landlord fitting-out guidelines, including structure loading limits, HVAC capacity, permitted M&E modifications, and a fitting-out period before rent commencement. An ID agreement must address these landlord constraints and the timeline imposed by the lease.

Retail and F&B design: retail and food and beverage operators opening new outlets in Hong Kong shopping malls engage interior designers subject to stringent landlord fitting-out guidelines from mall management. F&B outlet design must also comply with kitchen layout requirements under the Food Business Regulations (Cap. 132X) administered by the Food and Environmental Hygiene Department (FEHD), and fire safety requirements under the Fire Services Ordinance (Cap. 95).

Hotel and hospitality design: large-scale hotel renovation and new hotel design projects in Hong Kong involve complex regulatory requirements including Buildings Department approval, Fire Services Department consultation, and compliance with the Hotel and Guesthouse Accommodation Ordinance (Cap. 349).

Limited scope design services: even for limited-scope engagements — such as a space planning consultation, mood board development, or furniture specification for a single room — a written ID agreement protects both parties on copyright ownership, fee payment, and liability for advice given.

A well-drafted Interior Design Agreement for Hong Kong should include the following key elements to be legally effective and commercially complete.

Project description and scope: the property address (with lot number and building name), the areas to be designed (rooms, floors, or zones), the design style brief, the overall budget range, and the project timeline including the target completion date. The scope of services should clearly distinguish between design services, project management, contractor coordination, and FF&E procurement — as each carries different fee structures and liability exposure.

Design process and approval milestones: a structured design process with defined stages — concept design, schematic design, design development, construction documentation, and site supervision — with client approval gates at each stage. The number of revision rounds included within the fee, and the basis for charging additional fees for out-of-scope revisions, must be specified to prevent disputes.

Regulatory compliance obligations: the agreement should allocate responsibility between the ID firm and the client for obtaining all required regulatory approvals — OC renovation permit, Buildings Department approval for A&A works under the Buildings Ordinance (Cap. 123), Fire Services Department consultation, and FEHD approval for F&B fitouts. The agreement should confirm the ID firm's obligation to design works that comply with all applicable regulations.

Copyright and intellectual property: copyright ownership provisions under the Copyright Ordinance (Cap. 528) must be explicit — whether the ID firm retains all copyright and grants the client a project-specific licence, or whether copyright is assigned to the client on full payment of fees. The ID firm's right to photograph the completed project for its portfolio, publications, and awards submissions should be addressed.

FF&E procurement model: the agreement must specify whether FF&E is procured by the ID firm as agent (using client funds, with a procurement fee of typically 10–20%), as principal (with a resale markup), or as advisor only. No GST or VAT applies to FF&E procurement in Hong Kong — a significant advantage over other markets. The Sale of Goods Ordinance (Cap. 26) implies quality warranties into any sale of goods by the ID firm.

Fee and payment schedule in HKD: a detailed schedule of professional fees payable at specified milestones — typically a deposit on engagement (10–20% of total fee), further instalments at concept approval, design development completion, construction commencement, and project completion. Late payment interest provisions should be included.

Defects liability period: for construction works coordinated by the ID firm, a defects liability period (typically 6 to 12 months from practical completion) during which the ID firm is obliged to rectify defective works at no additional cost to the client.

Dispute resolution: staged dispute resolution — direct negotiation, Consumer Council of Hong Kong mediation or HKIAC mediation, then HKIAC arbitration or District Court proceedings. The Security of Payment Ordinance (Cap. 596) provides a fast-track adjudication mechanism for payment disputes in construction and related service contracts, under section 5 of Cap. 596, which is a useful remedy for ID firms pursuing unpaid fees. Section 14 of the Buildings Ordinance (Cap. 123) governs approval for A&A works. Section 7B of the Copyright Ordinance (Cap. 528) addresses moral rights in design works. Section 9 of the Sale of Goods Ordinance (Cap. 26) implies merchantability conditions into FF&E procurement contracts. Free ID agreement templates are available at forms-legal.com. Related documents include the HK Service Agreement, HK Renovation Agreement, and HK Non-Disclosure Agreement.