Update Your Construction Contracts: Changes for 2025

President Donald Trump has been in office for only a few weeks now and he is already bringing a ton of changes. Within days, he signed numerous executive orders, and many of them will affect the construction industry. These new laws will affect labor, prices, materials, and permits.

Builders will have a lot on their plates in 2025 and beyond. They will face issues as they attempt to follow the law and try to apply the updates to individual contracts and grants. Here are some issues to watch out for.

 Tariffs

Perhaps the biggest issue for contractors in 2025 will be potential tariffs and how they will increase prices for construction projects. President Trump is looking to impose a 10% tariff on China and 25% tariffs on Mexico and Canada. Even though many construction materials are produced domestically, their underlying components are often constructed overseas. There is concern that the cost of materials could skyrocket again.

 Labor

Labor is another issue that contractors could face as President Trump signs executive orders to crack down on immigration. The Pentagon recently sent 1,500 troops to the United States-Mexico border. With approximately 20% of construction workers lacking permanent legal status here in the United States, construction projects could be delayed.

However, keep in mind that a labor shortage created by immigration is a basis for a delay claim. Make sure this is addressed up front in the contract so you’re not to blame. This would be a risk that goes to the owner.

Fraud, Waste, and Abuse

President Trump has a new Department of Government Efficiency, so he’s become focused on looking for fraud in federal programs. While this doesn’t affect most small-scale residential contractors, civil builders should be prepared for increased scrutiny. Trump and his team will likely have more oversight on federal projects. There is an increased focus on reduction of fraud, waste and abuse, so you can bet that Trump will be looking at integrity and accountability.

In fact, Trump’s “Unleashing American Energy” order directs federal agencies to stop disbursing certain funds from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. While Trump’s focus is on reducing waste, many agencies have questions about the orders. Since the executive actions will affect the legal rights of federal contractors, you can bet that there will be some legal challenges in the coming months.

 Learn More About Construction Contracts 

General contractors need to ensure they have valid contracts that accurately show the costs and other details involved. There have been a lot of changes lately, so these contracts need to follow the law.

Orlando construction & development contract lawyer B.F. Godfrey from Godfrey Legal can help you get your project planned and in the ground. Construction contracts can be tricky, but we can help clarify the duties, responsibilities, and obligations of each party. Schedule a consultation today by calling (407) 890-0023 or filling out the online form.

Source:

constructiondive.com/news/trump-impact-construction-contracts/738395/