Interior Design Procurement Risks

Interior Design Procurement Risks

Procurement—meaning the process of finding, selecting, and purchasing goods or services for a project—is a big part of the interior design process, but for many designers it’s an area filled with hidden legal risks.

Recent Google searches like “Does Australian Consumer Law apply to interior designers?” or “Can I be liable for a supplier’s mistake in my project?” show that this topic is confusing and increasingly important for creatives across Australia.

Even if you’re not drafting contracts every day, understanding how procurement works—and how the law can affect you—means avoiding nasty surprises and keeping your business safe.

Why Is Procurement Legally Risky?

Many designers see procurement as a practical add-on to their creative work.

The assumption is often that if you simply help a client order a sofa or recommend a supplier, you’re in the clear. Unfortunately, the Australian Consumer Law (ACL) treats recommending, sourcing, and supplying products as activities that attract consumer guarantees, statutory obligations and potential liability—even if you never handled the item yourself.​

Surprisingly, interior designers may be classified as a “supplier” under the Australian Consumer Law (ACL) simply by sourcing products or passing on supplier information to a client—even if they don’t physically handle the item. In some circumstances, designers can even be regarded as a “manufacturer” if they are closely involved in selecting, modifying, or branding products for a project.

This classification carries significant legal responsibilities: if a product arrives damaged, is delayed, doesn’t meet promised standards, or fails to perform its intended function, the designer may be responsible for addressing these issues.

For example, designers could be required to offer refunds, replacements, or compensation for faulty or misrepresented products—even where the original fault lies with an external supplier.

Now, here is the thing: It doesn’t matter whether the issue started with a third party; if the designer facilitated the purchase or offered advice, they can quickly become the main point of contact for consumer complaints and claims.

That’s why understanding your potential obligations as a supplier or manufacturer—and ensuring contracts and client communications are watertight—is so important in protecting your business and reputation.

Summary

So, if you recommend, source, or supply products, Australian Consumer Law may:

1. Treat you as a supplier, even if you used a trade account for convenience.
2. Hold you responsible for the consumer guarantees attached to products—meaning you could be on the hook for refunds, replacements or repairs.
3. Expect you to manage delivery risks, safety standards, and compliance—sometimes even if problems were outside your control.

Real-World Problems You Can Face

A client contacts you about a sofa you ordered, claiming it stains easily despite supplier assurances.

Lighting from an overseas brand arrives late; you ordered it on your client’s behalf, so you could be liable for compensation.

A designer goes out of pocket after a marble tabletop arrives cracked and the supplier refuses to refund.

These problems often arise from unclear contracts, informal approvals, or assumptions that suppliers will automatically take responsibility.​

What Designers Are Responsible For Legally

Here’s what Australian designers need to know:

1. If you’re named on a product order, you may be considered the legal supplier. This applies even if you’re just helping a client.
2. You must comply with consumer guarantees under the ACL, which means products need to be fit for purpose, match their description, and be safe.​
3. If a product is faulty, delayed, not as described or unsafe, you could be held responsible for fixing the issue—even if the supplier made the mistake.

Unexpected Events and where does this leave you?

To protect yourself:

1. Always have clear, written contracts with both clients and suppliers.
2. Specify who is responsible for what—including purchases, returns, and refunds.
3. Document approvals properly and avoid quick, informal agreements via text or email.​
4. Where possible, arrange for the client to contract directly with the supplier, and charge a procurement fee for your time.​
5. Think carefully before using your trade account, as this often makes you the “supplier”.

Why Not Knowing This Stuff Can Be Risky

When you’re looking at supplier terms, it’s worth thinking about how things like refunds, delays, damages and warranties are sorted out. Pay attention to who is actually responsible for delivery and installation, and watch for policies around cancellations or things that can’t be predicted. If there are clauses that could make you responsible for a problem you can’t control, take note—that’s worth a chat.

As for your own approach to procurement, it helps to be clear from the start about who’s doing what—who’s placing the order, who signs off, and who foots the bill.

Sometimes it makes sense to act as your client’s agent instead of being seen as the actual supplier. You want to avoid getting stuck in the middle of disputes, and make sure your own paperwork spells out exactly what you are—and aren’t—taking responsibility for.

Not sure where to start?

At Sharon Givoni Consulting, this is what we help with every day. DesignWise Legal is powered by our team. We’re here to make the legal side of design just that little bit easier—so you can stay focused on what you do best.

FAQs

1. Can I be held responsible for supplier mistakes?
Yes. If Australian Consumer Law treats the interior designer as the supplier, you may need to provide refunds or repairs.

2. Does using my trade account carry risks?
It can. Ordering in your own name could mean that you’re legally the supplier.

3. What happens if the product is faulty or delayed?
You may need to fix the issue, offer a refund, or compensate your client.

4. Does consumer law apply to interior designers?
Yes—both your design services may be regulated under consumer law.​

5. How can I avoid these risks?
Use clear contracts and document approvals – always best to use a lawyer.

How DesignWise Legal (Powered by Sharon Givoni Consulting) Can Help

1. Draft and review procurement-safe contracts for your design business.
2. Advise on ACL obligations, supplier terms, and risk-management strategies.
3. Help manage disputes with suppliers or clients before they escalate.

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Please note the above article is general in nature and does not constitute legal advice.

Please email us info@iplegal.com.au if you need legal advice about your brand or another legal matter in this area generally.