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Tariffs Create Uncertainty and Cost Surge
- The Trump tariffs created massive uncertainty, spooking investors and disrupting supply chains.
- Construction costs and material availability became unpredictable, complicating development projects.
Building Costs Are Wildly Unpredictable
- Construction inputs like steel and lumber have spiked due to tariffs, making bids and pricing nearly guesswork.
- Projects without fixed guaranteed maximum price contracts face big cost overruns and timing risks.
Manage Project Timing and Costs Closely
- Developers must consider the risk of longer timelines driving up interest and carry costs.
- Securing fixed-price contracts and inventory inventory buffers can help shield against supply chain shocks.