As uncertainty in relation to the applicability and scope of
tariffs continues, we look at considerations when negotiating
construction contracts or managing the impact of tariffs on project
delivery under existing contracts.
Supply Chains
As we noted in our briefing, US Tariffs: Next Steps for Irish Companies, as
an initial step, companies should comprehensively review their
supply chains to identify potential alternatives and minimise
reliance upon affected resources.
Contractual Mechanisms
While it is important to review your contract in its entirety,
some mechanisms are more likely to be relevant.
Change In Law
The risk of cost impacts arising from change in law (within the
meaning of the contract) after a specified date typically sits with
the employer. Whether imposition of tariffs by the EU, USA, or
another non-EU country comes within scope of the clause will depend
on how the clause is drafted. In the FIDIC standard form, for
example, a change