Note: This article appeared in its original form as "Preparing for Possible Impacts of Tariffs on Projects," in the March 2025 edition of the Practice Advisory newsletter and continues to be updated with new information.
As discussed at a 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.
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 calls for substitutions and other related change requests.
For further background knowledge and consideration, practices may want to review the following resources, which include third-party articles that may not necessarily reflect the opinions of the OAA or its governing Council. (Note: This list may be updated as the situation changes and updated information becomes available.)
Resources for Practices: Professional Services Contracts and Contract Administration
OAA practice resources
- OAA Standard Extra Services Contract Change Forms.
Third-party articles (shared for information purposes and may not necessarily reflect the views of the OAA)
- “Dealing with Substitutions,” by Pro-Demnity Insurance Company, December 31, 2016;
- “Navigating the Trade War: Nine Risk Management Strategies for Architects,” by Leslie Parker (Pro-Demnity Insurance Company), April 3, 2025;
- “The Implications of Trump Tariffs to Consultants,” by Annik Forristal (McMillan LLP), March 2025;
- “Preparing your Business for Potential Tariffs: What You Need to Know,” by Canadian Construction Association, January 2025;
- “Navigating Impacts of Tariffs on the Canadian Construction Industry,” by Erin Peters, Daniel A. Boan and Rebecca Torrance (Borden Ladner Gervais LLP published on Lexology), March 6, 2025;
- “Tariffs and Your CCDC Construction Contracts: Key Clauses to Review Now,” by Edward (Ted) G. Betts and Aaron Hunter (Gowling WLG published on Lexology), March 11, 2025;
- “U.S. Tariffs and CCDC 5B Contracts,” by Ontario General Contractors Association, March 13, 2025;
- “From Clause to Cost: Tariffs Risk in Canadian Construction Contracts,” by Michael Swartz, Kathleen Gregus, and Ethan Levy (WeirFoulds LLP), March 4, 2025; and
- “RAIC Statement on U.S. Tariffs and Their Impact on Canadian Architectural Industry,” by the Royal Architectural Institute of Canada, March 7, 2025.
Members may also want to subscribe to Lexology for updates from various Canadian construction law firms and be kept informed of legal and regulatory developments regarding the impacts of tariffs on the Canadian construction industry.
An earlier version of 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.