What are reimbursable expenses incurred to complete a project but not included in the design contract called?

The correct designation for reimbursable expenses incurred to complete a project but not included in the design contract is termed disbursements. Disbursements refer to costs that a designer might incur while executing the project, such as travel expenses, printing fees, or costs for materials necessary for the project that are not covered under the contractual agreement.

Disbursements are typically billed to the client as additional costs that arise during the project execution but fall outside of the predetermined scope of the design fees. This allows for transparency and reimbursement for the designer for necessary expenditures that ensure the successful completion of the project.

In contrast, overhead costs generally refer to ongoing business expenses that are not directly tied to a specific project, such as utilities or salaries. Direct costs are expenses directly attributable to the project, like labor and materials included in the design contract, while fixed expenses consist of regular payments that don't change with the level of services provided, such as rent. Understanding the distinction between these categories is crucial for accurate financial management in interior design projects.