Join us for an engaging conversation with construction attorneys and architects about how to safeguard your projects, firm and clients against economic challenges.  We’ll delve into standard contract clauses, common law protections, contract negotiations and project controls in a volatile environment.  Our panel will offer diverse prospectives on the challenges and solutions in these areas.  Tune in to discover best practices for navigating in today’s economically challenging built environments.

Summary:

Tariffs are taxes levied on goods imported into the U.S., usually paid by the importer at the port of entry. These tariffs increase the costs of imported materials, such as those used in construction, potentially leading to higher project expenses. Standard construction contracts typically hold contractors responsible for any tax changes, including tariffs, without compensation for increased costs. Relief for tariffs is rarely included in force majeure or commercial impracticability clauses, and while some federal contracts might allow for equitable adjustments under certain conditions, this is not a certainty. Those in the role of Project and Contract Management should consider negotiating specific contract clauses to manage tariff-related risks effectively.

Learning Objectives:

• Understand how tariffs function as taxes on imported goods and their impact on construction costs.
• Identify the standard contract obligations regarding taxes and tariffs for contractors.
• Recognize the limitations of common contract clauses, such as force majeure, in providing relief for tariffs.
• Explore potential strategies to mitigate tariff impacts through contract negotiation.
• Recognize the importance of consulting experienced legal counsel when addressing tariff-related risk and contract disputes.