The Graphic Design Trade Customs were developed by the International Design by Electronics Association. O’Connor Graphic Design Inc. has added further detail and clarification to these guidelines as they apply to its business and clients.
Trade Customs provide guidance regarding specific areas of responsibility and other particulars which might not be outlined in a commercial agreement. Where a commercial agreement is silent with regard to one or more practices, the Trade Customs areas are used to interpret the understanding of the parties.
It should be clearly understood that the Trade Customs protect both parties in a commercial agreement. It is, therefore, the responsibility and obligation of involved parties to understand their content and meaning.
Clarification of terms:
Client = Customer (you)
Designer = O’Connor Graphic Design Inc., Priscilla O’Connor, Affiliates of O’Connor Graphic Design Inc.
Printer = third party printer/service bureau
1. ESTIMATE
(Defined as:) “A preliminary projection of cost which is not intended to be binding.” Estimates are based upon prevailing wages, the anticipated hours of work and the cost of materials and supplies necessary to produce work in accordance with preliminary copy, style and specifications and are not binding upon the designer unless a firm quotation has been issued.
O’Connor Graphic Design Inc. will provide a price estimate -- in place of a bid -- for any project in the conceptual stage. O’Connor Graphic Design Inc.’s fees are based on an hourly rate. (See Overtime for further design pricing.) Supplies are charged separately.
2. QUOTATION
(Defined as:) “A fixed price for producing a given project.” A quotation is firm unless otherwise specified. Quotations are subject to acceptance within 30 days and are based on the cost of labor and materials on the date of the quote. If changes occur in the cost of materials, labor or other costs prior to acceptance, the right is reserved to change the price quotes. Subsequent projects will be subject to price revision if required. Quotations do not include alterations or applicable sales tax unless otherwise specified.
O’Connor Graphic Design Inc. provides estimates, not quotations, in most cases. This is due to the large possibility that the final project fee may vary from the original estimate, and because an hourly rate is billed, versus a set fee for a project. If requested, O’Connor Graphic Design Inc. will only provide price quotations in writing, and only after a specific project has been sufficiently described. Any pricing given that does not include the wording “quote” or “quotation,” or is not written, will not be considered a binding agreement in terms of pricing.
3. ALTERATIONS
Alteration charges are incurred by a client when a change is made to: approved layout, approved manuscript, mechanicals or disk produced correctly or any new work not within the original specifications.
O’Connor Graphic Design Inc. may charge overtime rates for alterations, and encourages clients to review their proofs fully the first time. Alterations to original order specifications are treated as a new order and require preparation of a new bid.
4. OVERTIME
(Defined as:) “Work performed by the designer in excess of the work schedule of the project.” Overtime may be charged at the designer’s prevailing rates for this service.
Excluding nights, weekends and holidays, O’Connor Graphic Design Inc. charges regular rates up to the estimated number of hours as outlined in the initial proposal. After the estimated number of hours has been reached, O’Connor Graphic Design Inc. will request additional time if necessary, and client will be charged accordingly. O’Connor Graphic Design Inc. will not produce client projects in overtime without announcing to the client the change in price. If the client desires work to be done nights, weekends and holidays, additional overtime may be charged and will be discussed with the client.
5. COPYRIGHT / OWNERSHIP
Creative work such as sketches, illustrations, layouts, designs, icons, logos, etc. produced on paper, computer disks or any other medium, are protected from the moment they are created, under the 1976 Copyright Act. Until the designer transfers ownership rights in writing, all creative work remains the property of the designer. There can be no unauthorized use of the designer’s work. Purchase orders issued after the completion of creative work, claiming the client’s ownership of creative work, are not valid unless agreed upon by both parties.
O’Connor Graphic Design Inc. assumes clients are aware of existing copyright laws, and will make every attempt to inform/educate the client about their application to a specific project. Terms of copyright and ownership will be agreed at the time an order is placed and approval to begin work signed by the client.
6. EXPERIMENTAL WORK
Experimental or preliminary work performed at the client’s request will be charged at current rates and may not be used by the client until the designer has been reimbursed in full for the work performed. All experimental work performed by a designer without authorization of the client is not billable.
O’Connor Graphic Design Inc. will produce variations in layout or other samples only if the customer does not have a specific layout in mind. These additional layouts will be billed accordingly.
7. CONDITION OF COPY
If original copy, disk or manuscript, furnished by the client to the designer differs from that which has been originally described and consequently quoted, the original quotation shall be amended or a new quotation will be issued.
O’Connor Graphic Design Inc. prefers not to prepare a quote in writing without reviewing all original materials to be included in the project. An estimate may be prepared, but clients should understand that poor condition of originals may require additional time for image/file cleanup, re-creation, or the purchase or new materials.
8. PRODUCTION SCHEDULES
Production schedules will be established and adhered to by client and designer, providing that neither shall incur any liability or penalty for delays due to state of war, riot, civil disorder, fire, labor trouble, strikes, accidents, energy failure, equipment breakdown, delays of suppliers or carriers, action of government or civil authority and acts of God or other causes beyond the control of client or designer. Where production schedules are not adhered to by the client, final delivery date(s) will be subject to re-negotiation.
O’Connor Graphic Design Inc. will give time estimates with project estimates and bids, and completion times for specific projects when the client signs an approval to begin work. Changes in client deadlines may incur overtime charges and preparation of a new bid. O’Connor Graphic Design Inc. claims computer crashes as “equipment breakdown”, and will not incur any liability do to these possible circumstances, should they arise.
9. CLIENT’S PROPERTY
The designer will make reasonable efforts to protect property belonging to the client while such property is in the designer’s possession; however, since computer disks and data are subject to damage, such property will not necessarily be insured. The designer will not be liable for loss. Therefore, no property of extraordinary value should be left in the possession of the designer.
O’Connor Graphic Design Inc. clients are encouraged to retain their original artwork, and provide O’Connor Graphic Design Inc. with a high quality copy or digital/scan copy of the artwork on disk. Should O’Connor Graphic Design Inc. need to utilize original artwork by the client (for scanning or color matching purposes) it will be returned as soon as possible.
10. OUTRIGHT PURCHASE vs. REPRODUCTION RIGHTS
These terms should be established at the time of purchase. “Outright purchase” gives the buyer physical possession of the artwork, disk, or negatives, while “reproduction rights” and related copyright interests require the return of the original to the artist. Outright purchase does not give to the buyer commercial or private reproduction rights or any other copyright interests unless so stipulated in the purchase agreement. The matter of first reproduction rights with subsequent reproduction rights subject to additional compensation should be clearly understood at the time of purchase.
O’Connor Graphic Design Inc. prices reproduction rights separately from document and graphic creation. Clients should state their intention for future use of the design work at the time of placing an order, or a separate bill will be added after the projects final approval for purchase of the future rights. Any documents, layouts or graphics created by O’Connor Graphic Design Inc. without reproduction rights spelled out in the initial order will remain under the ownership of O’Connor Graphic Design Inc. until new rights purchases are made by the client.
11. RE-USE AND EXTENDED USE OF ARTWORK, DISKS OR NEGATIVES
Artwork, disks or negatives purchased for a specific use cannot be re-used or adapted for other purposes than originally planned without additional compensation to the artist. If this possibility exists at the time of purchase, it should be so stated and the price adjusted accordingly. If re-use or adaptation occurs after purchase and the client has not acquired the copyright, the client should negotiate reasonable additional compensation with the designer. Whenever adaptation requires the services of a designer, and the designer has performed to the client’s satisfaction, the designer should be given the opportunity to revise the designer’s own work.
O’Connor Graphic Design Inc. encourages clients to retain camera-ready [prints] or digital copies [disk] of their completed orders, since O’Connor Graphic Design Inc. does not offer document archiving services and cannot be responsible for loss of data. However, client possession of digital/paper copies of documents does not automatically grant the rights for revision or re-use. Unless All Rights were purchased from O’Connor Graphic Design Inc. during the initial order, the client must purchase additional reprinting rights from O’Connor Graphic Design Inc., or submit a new order for further design work/revisions.
12. MARK-UPS
Any services or goods such as typography, printing, photography, etc., or materials used specifically for the completion of a given project will be billed to the client with an appropriate mark-up. This mark-up is a handling fee only and unless otherwise agreed, does not include any professional or management fees.
O’Connor Graphic Design Inc. defines mark-ups as “extra charges added to an initial price quote/estimate,” and will try to avoid these price additions whenever possible. Some projects will require the purchase of additional materials not already in its graphic/software library or capability, such as: specific typestyles/fonts, stock photography or clip art purchased from a digital service, additional software purchases, or software/technical training. These materials will be included in original price quotes whenever possible, but will be added to a final bill later, as mark-ups, as the client’s need arises and their approval is likewise given.
13. SPECULATION
Graphic designs should not be asked for on speculation by a client. Design contests are considered speculation, except for educational or philanthropic purposes.
O’Connor Graphic Design Inc. will not perform any “preliminary” or “sample” design work free of charge. All unused design work will be preceeded by a contract, and considered “conceptual” work, even if client does not utilize the designs.
14. TERMS
By requesting work either verbally, in writing, or by purchase order, the client agrees to the designer’s terms of payment and applicable late charges on unpaid balances. Payment shall be in conformance with the quotation or invoice unless otherwise specified in writing. Disputes over the invoices must be made by the client in writing within a period of five (5) days after the client’s receipt of the invoice. Failure to make a claim within the stated period shall constitute acceptance and an admission that the client agrees with the invoice submitted. If only a portion of the invoice is in dispute, it is the client’s responsibility to pay that portion within the terms of the invoice.
O’Connor Graphic Design Inc. prices document/graphic creation at an hourly rate, rounded up to 15-minute intervals. Consultation, research and coordination with third party printers/services are also priced at an hourly rate. Prints, films and proofs are priced additionally. Disks, fonts and typestyles, stock photography or other software/supplies are priced additionally. Training is priced additionally. Mailing, faxing and phone calls are priced additionally.
15. LIABILITY
The designer is only liable for the correction of the designer’s errors made during the production process. The ultimate proofing prior to the printing is always the client’s responsibility unless the designer accepts this responsibility in written agreement. In any instance, the designer will not be liable for more than the design and mechanical costs of a job in dispute.
O’Connor Graphic Design Inc. will not deliver camera-ready art or layout/digital files or disks to the client, or deliver a layout to a third party printer, until the client has proofed the job and signed a Final Approval. Once the Final Approval has been signed, the client is responsible for the entire document layout/graphic, including any errors in punctuation, spelling, grammar, dates, numbers, and other content. O’Connor Graphic Design Inc. is not liable for any delays, missed deadlines or other conflicts if a client fails to sign the Final Approval.
16. INDEMNIFICATION
The client shall indemnify and hold harmless the designer from any and all losses, costs, expenses, and damages (including court costs and reasonable attorney fees) on account of any and all manner of claims, demands, actions, and proceedings that may be instituted against the designer on grounds alleging that the designer unknowingly violated any copyright or any proprietary right of another. Any materials such as photographs, photostats, transparencies, drawings, paintings, maps, diagrams, etc. furnished by the client to the designer should not infringe on the copyright or proprietary right of any third party. The designer is indemnified against any liability due to the client’s failure to obtain correct usage rights and those materials. Any false statements knowingly or unknowingly given to the designer, by the client, to be used as factual information to promote a product or service shall remain the client’s sole responsibility for substantiation and all other purposes.
O’Connor Graphic Design Inc. will not make use of any copyrighted, registered trademark, professionally photographed, or professionally designed materials without express permission from the copyright or trademark holder. O’Connor Graphic Design Inc. prefers to use all original elements in its design work.
17. PRINT MANAGEMENT/PRESS INSPECTIONS
If a designer performs a press inspection for a client, the client’s responsibility for proofing remains in effect. If the client has signed a printer’s blueline, the designer is not responsible for any errors reflected in the approved blueline. If the designer approves color on a press proof or any other color proof, the designer is only responsible for approving color acceptable by industry standards. The printer is responsible for ensuring that the subsequent press run matches the color within acceptable standards of the proof approved by the designer.
O’Connor Graphic Design Inc. is primarily a design service, and will only provide service bureau-type coordination between client and third party printer/publisher if the project requires direct contact with the third party. The additional time and prints will be billed accordingly. Again, O’Connor Graphic Design Inc. will not deliver camera-ready art or disks/files to a client or printer until the client has signed a Final Approval. Any changes made to a layout file at a third party printer are not the responsibility of O’Connor Graphic Design Inc., and the client shall pay any accrued charges.
Graphic Design Trade Customs
Standards of practice for the design industry and how it relates to you