In light of recent Executive Orders issued by President Trump concerning tariffs, countries around the world—including the United States—have been forced to reassess existing trade and contractual frameworks. The construction industry in particular faces heightened uncertainty due to the risk of disruption of project timelines and budgets.
In an article for Nossaman’s California Water Views – 2025 Outlook, we examine how construction contracts should proactively address tariff-related risks, especially through the careful drafting of force majeure provisions and cost escalation clauses. By clearly defining the treatment of tariffs in contracts and Requests for Proposal, all stakeholders—from owners to contractors—can better allocate risk, minimize disputes and ensure smoother project execution in an unpredictable economic climate.
