As discussed at a recent Practice Resource Committee (PRC) meeting, there are anecdotal reports of planned projects being put on hold, and of projects already underway seeking to immediately purchase materials and equipment given uncertainty with tariffs and related impacts between Canada and the United States. This increase in immediate demand may lead to price increases even before tariffs are implemented.
Members, with the assistance of legal counsel, should review both the construction contracts they are administering and their own services contracts to become familiar with how unpredictable price increases and delays in the supply chain are dealt with. It may be appropriate to discuss these issues with clients and contractors to minimize surprises and disruptions to projects.
Procedures developed in response to supply chain issues that arose because of the COVID-19 pandemic may need to be adapted to deal with the impact of tariffs. There may also be requests for substitutions. Practices may want to review the following resources:
This article originally appeared in an issue of Practice Advisory—a newsletter developed by the OAA’s Practice Advisory Services team, which offers numerous resources for both members and the public.
The OAA does not provide legal, insurance, or accounting advice. Readers are advised to consult their own legal, accounting, or insurance representatives to obtain suitable professional advice in those regards.