Tariffs and immigration enforcement are at the forefront of the federal government’s agenda in today’s world, and both can have a substantial impact on a construction contractor’s cost and time to perform its work. However, with proper planning and contract negotiations, contractors can eliminate, or at least, minimize the risk of delays and cost increases driven by tariffs and immigration enforcement efforts. Potential impacts caused by tariffs and immigration enforcement should be evaluated during pricing, contract negotiations, and throughout the construction project. Current contracts should be reviewed to assess contractors’ rights to change orders and time extensions, and drafting and negotiating of new contracts should include planning for price increases resulting from the impact of tariffs and immigration enforcement.

This article discusses ways that contractors can proactively address impacts and reduce the risk of costly disputes related to steel and aluminum tariffs, labor shortages, supply chain disruptions, force majeure events, supplier and subcontractor changes and renegotiations, communication and notice management, and timing and delay impact management.

Reprinted courtesy of Tiffany A. Harrod, Peckar & Abramson, P.C. and Joshua M. Pruett, Peckar & Abramson, P.C.

Ms. Harrod may be contacted at tharrod@pecklaw.com
Mr. Pruett may be contacted at jpruett@pecklaw.com