As the multifamily market rebounds (hopefully) in 2025, potential new tariffs on materials like steel, lumber, and appliances are raising concerns for developers and contractors alike. Many clients question how to address price escalation risks arising from tariffs in their standard fixed price (FP) and guaranteed maximum price (GMP) contracts, including under changes-in-law clauses, allowances, the contingency account, and other contract mechanisms. For a deeper dive into these strategies and practical examples, my recent article for the Daily Journal of Commerce offers insights to help you navigate these complex issues.
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Key contract clauses to address tariff risks
Collaborative strategies for risk-sharing and early procurement
Practical examples of tariff management in recent projects