Will Tariffs Trigger Construction Disputes?

6 Factors Potentially Affecting Commercial Construction In The U.S.

PHILADELPHIA, PA, UNITED STATES, September 23, 2025 /EINPresswire.com/ -- Tariffs have been in the news, as the U.S. administration expands their heightened use as a tool to adjust the trade imbalance and to stimulate manufacturing within the United States. Yet, achieving those goals may take some time.

Currently, a number of key construction materials are primarily manufactured in other countries, ones likely to be places where tariffs will be added or increased. Some of the most commonly utilized building materials affected include:
- steel
- aluminum
- cement
- lumber and lumber products
- and equipment.
With tariffs added to the prices of those items and others, how will that action affect the U.S. commercial construction industry?

James Gallagher, Principal at Resolution Management Consultants, a leading construction management and dispute resolution firm, said, “In 2025 there are a number of factors, in addition to tariffs, affecting the commercial construction supply chain and costs. Influences such as inflation, politics, war, higher interest rates and others have the potential to increase costs and cause delays. Looking at the U.S. construction market as a whole, it may be difficult to separate those issues from the effects of tariffs alone, in order to understand their true impact on the U.S. construction market.”

Gallagher observes that when all things are factored in, the net effect of tariffs alone may not have as dramatic an affect as some are predicting. Gallagher is predicting that tariffs effect can be as little as 1-2%, but that amount is expected to be on top of the 4-6% price increase already predicted this year based on those other factors. The point is, construction pricing and supply will be affected and it will be prudent to protect one’s exposure as best as possible.

Gallagher outlines 6 areas where he believes that this short-term tariff environment might negatively impact agreements and expectations, leading to disputes and litigation, including:
1) Lack of supply availability as offshore manufacturers temporarily shut
down or limit production, due to their fear of instability in the markets.
2) Slow delivery or no delivery, affecting completion timetables.
3) Re-stocking slowness leading to missed deadlines.
4) Rising costs of materials, causing construction budget overruns.
5) “Upstream” issues, such as access to parts, components or ingredients
can hinder end-stream manufacturing delivery timing.
6) Uncertainty in the markets, due to fear of additional pauses, slowdowns
or stops, leading to further delays and interruptions.
Although the effects might be temporary, they can be disruptive enough to trigger disputes and litigation. For those new projects still in the planning stages, the tariff environment can also delay them, temporarily creating missed timetables and higher costs.

Gallagher advises, “Construction companies need to protect themselves by being proactive in the process…and transparent with all participants.” Above all, he recommends strengthening lines of communication among owners, construction partners, subs and suppliers in order to help eliminate surprises.

Gallagher offers some tips on preparing for the effects:
- Review all contract details. For example would your Force Majeure
clause cover outside influences such as new tariffs?
- Address with all parties what happens to existing contracts if costs
go up due to tariffs, prior to its happening.
- Review expected equipment and material purchases - perhaps it will be
worthwhile to purchase sooner than later and even adjust owner payment
scheduling.
- Double check with suppliers to make sure your supply is available
according to your expected timetable.
- Review contracts to prepare material substitution definitions
and requirements.
- meet with subs to see where they might be exposed.

Said Gallagher, “In the long run, having more supply produced in North America will likely make the supply chain more controllable. But in the short-term, it will be valuable to be proactive and transparent on projects in order to minimize opportunities for disputes.”
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About Resolution Management Consultants, Inc.
Resolution Management Consultants, Inc. (RMC) is a nationally recognized consulting firm headquartered in Marlton, NJ. There are two sides to the business: the construction planning and management aspect − helping clients build more successful projects − and the litigation aspect − should matters go to court, providing analysis and testimony as expert witnesses. Founded in 1993 by veterans in the construction, contracting and engineering professions, RMC has assisted numerous private owners, public agencies and contractors in either achieving project goals or resolving cost and time disputes between the contracting parties.
Website: resmgt.com
LinkedIn: /company/ResolutionMgt
Twitter: @ResolutionMgt
Facebook: @ResolutionMgt

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Leo Levinson
GroupLevinson Public Relations
+1 215-545-4600
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