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ABW Consulting

Are You Ready for August 1st? Construction Leaders Can’t Afford to Ignore the New Tariff Rules

  • Writer: Amber Brannigan
    Amber Brannigan
  • Jul 18
  • 2 min read

Starting August 1st, new reciprocal tariffs take effect across multiple countries and while the headlines focus on trade relationships, the actual pressure will hit job sites.


Tariff rates are based on ship date: If your materials ship after July 31st, even if they were ordered months ago, they’ll be subject to the new tariff rates. And if your contracts don’t spell out how to handle those cost increases, that’s a risk you’ll feel in your budget, your approvals, and your bottom line.


This isn’t a future issue. It’s happening in two weeks.


At ABW Consulting, we’ve spent the past several months working directly with contractors, construction managers, and public agencies navigating this challenge. We’ve been sharing practical guidance on LinkedIn all week, from what contractors can do right now to how owners and municipalities can better protect public dollars. Now we’re bringing it all together here.


What Owners, Municipalities, and CMs Should Be Doing Right Now

Even if your project is already awarded and material is on order, it’s not too late to reduce your exposure.

Here’s what to act on now:

  1. Review shipment schedules for awarded projects. Materials arriving after August 1st could trigger increased costs. Cross-check dates and verify with vendors.

  2. Request shipping and surcharge documentation now. Ask suppliers to confirm HTS codes, delivery dates, and tariff line items. You’ll need this documentation if costs increase.

  3. Clarify what qualifies as a tariff-related change order. Require HTS codes, supplier invoices with line-item tariffs, and written justification. The clearer your process, the fewer the disputes.

  4. Update internal workflows. Make sure project managers and accounting teams know how to identify surcharge claims and what supporting documentation to expect.

  5. Add safeguards even to in-progress projects. Contracts can be amended. Workflow expectations can be clarified. Teams can still align before invoices start to pile up.

  6. Rethink the low-bid default. A low number with no plan for escalation is not a responsible bid. Ask how material volatility is being managed,

    upfront.

  7. Prepare for more volatility. These tariffs are just one round. More are expected, especially during election season. Resilient systems now = fewer surprises later.


What ABW Consulting Offers

We don’t just talk compliance. We design tools and workflows that make it stick.

At ABW Consulting, we’ve developed AI agents and automation-ready systems that:

  • Track HTS codes across vendors and materials

  • Verify supplier documentation including invoices and certificates of origin

  • Flag unsupported change orders before they derail your budget

  • Standardize review and escalation processes so every cost increase has a paper trail

  • Clarify contract language mid-project to reduce future ambiguity


These aren’t theoretical tools. They’ve been field-tested alongside contractors, engineers, and public owners across infrastructure and vertical construction projects.


Final Thought

If you’re not tracking HTS codes, surcharge language, or delivery timing today, your project could already be behind. And if you are tracking it but your team is overwhelmed there’s no reason to go it alone.


📬 Reach out. Let’s talk about how our systems can help you keep your next project compliant, defensible, and moving forward.


🔗 Follow us on LinkedIn at ABW Consulting or visit abwconsulting.ai for more resources and practical insights.


 
 
 

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