How Tariffs Are Shaping the Future of Design-Build Construction
The design-build construction industry thrives on efficiency, collaboration, and smart planning—but one thing that's harder to plan for? Tariffs.
As global economic tensions continue to influence trade policies, new and proposed tariffs on key construction materials like steel, aluminum, and lumber are creating ripple effects across our industry. For those of us in the design-build space, where speed and integration are key value drivers, these impacts are impossible to ignore.
Material Costs on the Rise
Tariffs often translate directly into higher costs for imported materials. Steel and aluminum—foundational elements in many commercial projects—have already seen price fluctuations due to trade restrictions. When materials cost more, project budgets tighten, and decision-makers are forced to reconsider scope, scale, or even timelines.
Design Implications
Cost increases don’t just affect the build—they influence the design. Architects and engineers are now working more closely with procurement teams to identify alternative materials, reevaluate specs, and ensure that aesthetic and structural integrity isn’t sacrificed in the name of cost savings.
Supply Chain Uncertainty
Beyond pricing, tariffs contribute to supply chain unpredictability. Delays in material availability can lead to project slowdowns or rescheduling, which is especially disruptive in a design-build environment where sequencing is critical. It’s no longer just about who can offer the best price—it's also about who can deliver reliably.
How Design-Build Firms Can Adapt
Early Procurement Strategies – Getting materials locked in earlier in the process can help avoid future cost increases or shortages.
Flexible Design Thinking – Collaborate across teams to build adaptability into design. Think modular, local sourcing, or alternative materials.
Client Education – Open and honest communication with clients about market volatility helps manage expectations and build trust.
Leverage Local Suppliers – Domestic sourcing is becoming more attractive, not only to sidestep tariffs but to reduce risk and lead times.
Looking Ahead
Tariffs are one more layer of complexity in an already fast-moving industry. But as always, the design-build model has the advantage of agility. When teams are aligned from day one, it’s easier to pivot quickly, control costs, and deliver smarter solutions.
In uncertain times, adaptability is the strongest foundation we can build on.
