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ARTICLE · 06 MARCH 2025

From Clause To Cost: Tariffs Risk In Canadian Construction Contracts

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In the current state of uncertainty surrounding the impact of tariffs imposed and threatened to be imposed by American and Canadian governments...

CanadaInternational Law
Michael Swartz
Michael Swartz
Kathleen Gregus
Kathleen Gregus
Ethan Levy
Ethan Levy
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In the current state of uncertainty surrounding the impact of tariffs imposed and threatened to be imposed by American and Canadian governments it is imperative that industry members consider the mechanisms, or lack thereof, for adjustment in contractors' compensation contained in various standard form contracts used frequently throughout Canada on construction projects ranging significantly in size, complexity and sector.

Understanding the entitlement of contractors to an increase in compensation under commonly used standard form construction contracts is complicated by the fact that in most cases, these contracts do not refer expressly to the concept of tariffs. Various standard form contracts do however refer to the concept of "taxes" and "duties".

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