Consignment Art Management for Galleries

Consignment — where an artwork's ownership stays with the artist or another owner while the gallery holds it for sale — is one of the art market's most common working models. But when poorly managed, it becomes a source of ambiguity and disputes.

The importance of a written agreement

Every consigned piece should have a written agreement covering commission rate, duration, insurance responsibility, and return conditions. Verbal agreements can lead to problems that are hard to resolve once a relationship sours.

Who's responsible?

If the piece is damaged while at the gallery, who's liable — the gallery, the owner, or an insurer? This needs to be clear before the agreement is signed.

A tracking system is essential

Consigned works need to be tracked separately from owned inventory, but within the same system — who sent the piece, when the consignment period ends, and how much is owed to whom upon sale all need to be clear.

Timely payment

Delayed payment to an artist or owner after a consigned piece sells is one of the most damaging things for a gallery's reputation. Systematic financial tracking prevents these delays.