Construction Price Escalations: How Not to Be Left Holding the Bag

In March, the federal government imposed a twenty-five percent tariff on imported steel and a ten percent tax on imported aluminum.  The resulting increased costs will likely be passed on to the construction industry.  General contractors typically increase their bid price to account for anticipated cost escalations.  For those projects already under contract, however, the pending increases pose a dire threat to profitability.  And a looming trade war could impact other materials widely used in the industry.  The critical question for those bidding is how to anticipate how far prices will rise and when.

To read the full article in Taft Law, click: Construction Price Escalations: How Not to Be Left Holding the Bag.