The British Columbia Construction Association (BCCA) has taken a step to help industry professionals manage economic challenges by recently releasing its new “Checklist for Navigating Tariff Uncertainty.” This high-level guide provides trade and general contractors with a practical framework to assess risk, address contract provisions, and take informed action amid evolving tariff policies.
The BCCA notes that tariff uncertainty has an impact on the construction industry. The BCCA’s checklist is designed to equip contractors with strategies to navigate these challenges. It emphasizes that successful management of tariff issues requires proactive communication and a thorough understanding of contractual obligations.
A primary focus of the checklist is communication and cooperation. Contractors are advised to initiate early and open discussions with all key stakeholders—including owners, general contractors, trade contractors, sub-subcontractors, and material suppliers. Such communication fosters a cooperative, solution-oriented environment where potential impacts of tariff changes on pricing and material availability are addressed transparently. This early dialogue can prevent misunderstandings and pave the way for collaborative cost-management strategies.
For mitigation and cost control, the checklist advises stakeholders to engage in early discussions that explore solutions and alternative cost-saving measures. Contractors are encouraged to consider alternative products, materials, or sourcing options that comply with bid documents and contractual obligations. Detailed documentation of all communications regarding tariff-related cost changes is also essential; this not only provides a record of efforts made to mitigate risk but may serve as crucial evidence in disputes over cost fluctuations.
For bidding and new projects, the checklist underscores the importance of thoroughly reviewing procurement and contract documents. Contractors must understand all duty and tariff provisions—especially those contained in flow-down clauses, which pass obligations from the prime contract to subcontractors and suppliers. The guide recommends using the Request for Information process to seek clarifications about tariff costs and emphasizes the need to include explicit duty/tariff provisions in bids using standard CCDC/CCA language. This approach helps ensure that any potential risks are clearly defined and allocated before project commencement.
The checklist also provides guidance for managing current projects. Contractors should carefully read their existing contracts for any applicable duty and tariff clauses, including provisions that may be passed down from the prime contract. Adhering to contractual notice requirements in writing is crucial to ensure that any tariff-related changes are addressed in accordance with agreed-upon terms.
Finally, the checklist addresses long-term considerations. It advises contractors to stay abreast of tariff policy changes, assess potential supply chain risks, and plan for the future by incorporating clear duty and tariff clauses into new contracts. Strengthening relationships with suppliers can also help mitigate the effects of future uncertainties.
The checklist is designated to be a helpful resource in an era of economic turbulence. Beyond this practical tool, the BCCA has expressed deep concern over the tariffs, urging the provincial government to pass prompt payment legislation, guarantee payment certainty, and remove internal trade barriers to protect the construction industry. As the only provincial organization representing all sectors of British Columbia’s construction industry, the BCCA remains committed to ensuring a resilient and productive industry for years to come.
