Monica Dozier Quoted in Construction Dive on Tariff Worries Impacting Contracts

Bradley attorney Monica Dozier was quoted in Construction Dive on the steps contractors can take to mitigate various difficulties as the industry braces for a possible wave of material price hikes.

“Force majeure clauses cover unforeseen events that make performance impossible or excessively costly. Some contractors may argue that tariffs meet this threshold, but whether a court or owner will agree is a separate matter,” Dozier said.

“Tariffs are generally considered import taxes,” Dozier explained. “Contractors should pay close attention to contract terms regarding tax responsibility, changes in law and even force majeure events to understand their potential rights and remedies in the event of a change in tariffs.”

Dozier agreed that projects using cost-plus or guaranteed maximum price structures allow for cost adjustments under certain conditions. The Associated General Contractors of America recommends using cost-plus agreements in light of tariff uncertainty.

“Recently, many contractors have started negotiating express change order relief for changes in tariffs in construction contracts,” Dozier noted. “Others have proposed incorporating price escalation rights tied to publicly-available commodities indices, or even open-book cost-plus procurement pricing terms.” 

By contrast, lump-sum contracts, which set a fixed-price agreement for a project, leave contractors more exposed to material price volatility because they offer fewer avenues for cost adjustments, Dozier said.

The full article, “Tariff worries force firms to rethink contracts,” was published by Construction Dive on February 25, 2025.