Managing tariff risks: CCA’s new bulletin offers essential advice for contractors
The Canadian Construction Association (CCA) has just released a vital new bulletin tackling a growing concern for contractors: how to manage tariff risks on construction projects.
Prepared by the CCA’s General Contractors National Advisory Council, the guide offers an in-depth look at how tariffs and counter-tariffs—especially those linked to U.S. trade policy—are directly impacting project costs, timelines, and contracts across Canada.
If you’re managing active builds or bidding on upcoming work, understanding how tariffs could affect your bottom line is more important than ever.
Key highlights:
- Project costs are rising: The bulletin explains how recent tariffs—especially on steel and aluminum—can cause a three to five per cent increase in overall project costs. With pricing often locked in months in advance, these fluctuations can create real financial strain for contractors.
- Impact on future projects: Trade policies continue to shift, and that uncertainty is making it harder to predict costs or lock in timelines. The bulletin discusses riskier tender/bid requests, extensions to closing dates, and the importance of force majeure and change in law clauses in contracts.
- Impact on existing projects: For ongoing projects, the imposition of new tariffs can result in unexpected cost increases and delays. The bulletin emphasizes the need for contractors to review contracts and manage material price increases and schedule impacts.
- Risk mitigation strategies: The bulletin offers practical strategies to mitigate tariff risks, such as providing flexibility in bid submissions, locking in prices with subcontractors, and diversifying supply chains.
The construction landscape is shifting fast—and contractors who understand tariff risks will be better positioned to protect their projects and profits. Whether you’re pricing a new job or reviewing active contracts, this guide offers concrete steps to help navigate the challenges ahead.
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Preparing your business for potential tariffs: What you need to know