Aipedia: Interior designers

AI-drafted design contracts and proposals: what must be in them

Aipedia, by the Apex broking team · Last reviewed 2026-10-27

AI can draft a proposal or terms of appointment quickly, but the result often misses items the BIID Code requires and may contain terms that are unfair to consumer clients. Gaps in the agreement are what turn small disagreements into claims.

Part of: AI in Interior designers

In short

Interior designers may use AI to write proposals, fee letters and terms of business. BIID Code clause 3(a) requires a written agreement before any professional work, and 3(b) lists what it must cover, including scope, fees, expenses, IP ownership and design rights (3(b)(vi)), insurance (3(b)(vii)), complaints, BIID membership and written variations (3(b)(xi)). Clause 3(c) requires reasonable steps to ensure the agreement is legally accurate and, for consumers, not unfair. AI drafts can borrow foreign law, overreach on limitation clauses, or omit IP and insurance terms. Check every draft against 3(b) and take legal advice on your standard terms.

How designers use AI for proposals and terms

Writing a tailored proposal for every enquiry takes time. AI tools can turn a briefing summary into a scope of services, draft a fee proposal, and generate terms of business from a short prompt. They can also compare a client's own terms with yours. The drafts read fluently, which makes gaps and errors easy to miss.

What the BIID Code requires

The BIID Code of Conduct (1 April 2026) sets out the written agreement in detail. Under clause 3(a), you must have a written agreement with the client before accepting or undertaking professional work. Under 3(b), it must cover, where relevant:

the contracting parties, other project parties and their responsibilities (i);
a detailed scope and description of services, with limitations and timescale (ii) to (iii);
your fee or how it is calculated, and any expenses (iv) to (v);
design rights and IP ownership (vi);
confirmation of adequate and appropriate insurance (vii);
suspension and termination (viii), a complaints procedure (ix), and a statement that you are a BIID member (x);
a provision for later variations, agreed in writing in advance (xi).

Clause 3(c) requires reasonable steps to ensure the agreement is legally accurate and cannot be considered unfair where clients are consumers. See the BIID Code and AI guide.

Common gaps in AI drafts

Wrong legal system: clauses drawn from US or other law, or references to statutes that do not apply in the UK.
Missing IP terms: no clause on who owns designs, or a blanket assignment of rights that may not exist; see who owns AI-generated designs.
No insurance clause: 3(b)(vii) is easily left out.
Unfair limitation clauses: sweeping exclusions that consumer law is unlikely to allow.
Vague scope: generic descriptions that do not match what you actually agreed to do.
No variation mechanism: nothing on how changes and extra fees are agreed.

What can go wrong

Illustrative scenario. A designer uses an AI tool to produce terms for a whole-house refurbishment for a private client. The terms limit the designer's liability to the fee and exclude all liability for supplier delays, but say nothing about design rights, insurance or how variations are agreed. When the project overruns, the client disputes additional fees, argues the limitation clause is unfair to a consumer, and claims the cost of a delayed move. Without a variations clause, the designer struggles to show the extra work was agreed.

Commercial clients and their terms

Commercial clients often send their own appointment, sometimes with indemnities, warranties of originality, high insurance requirements or fitness-for-purpose obligations. AI tools can summarise these quickly, but may miss how one clause changes another. Liability you accept by contract beyond the normal duty of reasonable skill and care may not be covered by PI. The AI contract clauses, indemnities and insurance guide explains what to watch for.

How PI usually responds

PI usually covers liability for breach of professional duty. It often does not cover liability you would not have had without a specific contractual promise, such as an uncapped indemnity or a guarantee of outcome, though wordings vary. A missing clause is not itself a claim, but it can make a dispute more likely and harder to defend. See does PI cover AI and IP claims and AI budgets and cost estimates for related fee disputes.

Practical controls

Check every AI draft against BIID 3(b) (i) to (xi).
Have your standard terms reviewed by a solicitor, then use AI only to fill in project details.
Keep consumer and business terms separate.
Add a clause on how AI tools are used and on IP ownership.
Ask your broker before accepting indemnities or unusual insurance requirements.
Do not start work until the agreement is signed.

How Apex helps: Apex arranges PI for interior designers. A broker can review client contract insurance requirements against your policy and flag terms your PI may not cover. See PI insurance for interior designers.

Sources

Frequently asked

Can I use AI to write my interior design terms and conditions?

You can use it as a starting point, but check the result against BIID clause 3(b) and have it reviewed for UK law. AI drafts can omit required items or include terms unfair to consumer clients.

What must a BIID member's client agreement include?

Clause 3(b) lists parties and responsibilities, scope, services and timescale, fees and expenses, IP and design rights, insurance, suspension and termination, complaints, BIID membership and a written variations provision.

Will PI cover liability I accepted in a client's contract?

Not always. PI usually covers liability for negligence. Wider contractual liabilities, such as uncapped indemnities or guarantees, may be excluded, so check with your broker before signing.

Check your PI covers how you use AI

Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.