NCIDQ Interior Design Professional Exam (IDPX) Practice Exam

When preparing a fee projection for a design project, understanding what should be deducted from the total design fee is crucial for accurate budgeting and financial planning. In this context, overhead costs are a significant expense that is typically deducted from the total design fee. Overhead refers to the ongoing operational expenses necessary to run a design firm, such as rent, utilities, salaries of non-billable staff, and administrative costs.

When calculating a fee projection, the goal is to ensure that the design fee reflects not only the direct costs associated with the project but also the necessary overhead to sustain the firm's operations. By deducting overhead costs from the total design fee, the designer can better assess what portion of the fee is actually contributing to profit and sustainability, as well as ensuring that the remaining amount adequately covers other project-related expenses.

In contrast, consultants' fees and reimbursable expenses are typically passed through to the client and are not deducted from the designer's fee. These costs are usually billed separately or as part of the project expenses covered by the client. Direct personnel expenses, while crucial for understanding labor costs within the project, are also typically factored into the design fee rather than deducted.