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OTTAWA — With the announcement of a proposed 25 per cent tariff on all imports from Canada and Mexico by U.S. president-elect Donald Trump set to take effect today , the Canadian Construction Association is outlining some tips for businesses so they can ready themselves for the potential impacts.Review your contract. Check if your contract includes provisions for price adjustments due to changes in taxes and customs duties, such as paragraph 10.1 inContracts without duty provisions.
“CCA encourages owners to fairly consider requests for price adjustments if contractors are facing unforeseen cost increases due to tariffs,” the notice reads.Raise the issue early: If the contract for a potential project lacks duty provisions, formally bring this to the owner’s attention. Include duty provisions: Encourage the owner to include duty provisions or address this uncertainty in the bid documents. Look to GC 10.1 of CCDC 2 for standard, industry-accepted wording.Cost recovery due to delays: If a project experiences changes, delays or suspensions that postpone material purchases and result in escalated costs, contractors might be able to recover these additional expenses, depending on the contract and situation.
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