The construction industry has always navigated market volatility, but the current tariff environment presents an unusual challenge. It’s not just the price increases that are disrupting projects—it’s the uncertainty itself. As someone who has spent decades in commercial construction, I found myself struggling to give clients clear answers about how tariffs would impact their projects. So, I did what any curious general contractor would do: I asked around.
I reached out to manufacturers, suppliers, and subcontractors across our supply chain to understand what they’re experiencing firsthand. Their responses paint a picture that every owner, developer, broker, and architect should understand as they plan projects in 2025 and beyond.
The Price Impact: Real, But Opaque
Across the responses I received from subcontractors and suppliers, material price increases attributed to tariffs range from 10% to 35%, depending on the material and supplier.
Steel and aluminum have been hit hardest, with manufacturers reporting increases at the upper end of that range.
Electrical materials and components from China have seen more modest impacts in the 10-15% range.
Material handling equipment from China and Korea is experiencing 10-25% increases.
Flooring products—both imported and domestic—are seeing similar impacts with 10-25% increases.
But here’s the fundamental challenge: the calculations are almost entirely opaque. Unlike sales tax, which appears as a clear line item on every material purchase showing the exact rate and amount, tariff charges rarely specify from which country the goods came, when they crossed the border, or which specific components are being taxed. Some manufacturers show separate line items for tariff costs, but these are typically percentage adders or dollar amounts without supporting documentation. Others simply cite vague language like “raw material costs.”
This lack of transparency creates questions about whether increases truly reflect tariff impacts or represent broader margin adjustments. Multiple respondents noted they’ve seen increases starting well ahead of tariff implementations, suggesting suppliers are anticipating costs or using the climate to adjust pricing more broadly. One major material purchaser put it bluntly: while there may be basic calculations to justify increases, much of this feels like opportunistic pricing enabled by macro-economic uncertainty.
Uncertainty and Market Paralysis as the Real Cost
More than one industry professional described a “wait and see” attitude taking hold in the market. One subcontractor observed that tariffs are creating a pause in buying decisions, with customers delaying commitments. This hesitation ripples through the entire construction ecosystem—when owners wait to commit, projects stall.
The inconsistency compounds the problem. Multiple respondents mentioned receiving price increase notifications, then retractions, then new announcements weeks later. One distributor described receiving tariff-related communications “almost daily.” This isn’t a one-time adjustment the market can absorb and move forward—it’s ongoing recalibration that makes planning extraordinarily difficult.
The New Normal in Contracts
The tariff environment has made price qualifiers nearly universal. Language like “Tariff Fee” or “Tariff Cost” clauses now appears in most proposals. General contractors and subcontractors are passing these clauses through to clients, creating a cascade of contingencies from manufacturer to end user.
But enforcement remains problematic. Multiple subcontractors reported that despite clear tariff language in their proposals, some clients are refusing to pay increases on existing contracts. One flooring subcontractor shared a particularly difficult example: they ordered a custom rug from Italy in April 2025, prepaying in full. Eight weeks later, upon delivery, they received an additional invoice for a 25% tariff charge with no advance notice. The general contractor refused to pay, and the subcontractor was forced to absorb the cost, or litigate.
This scenario illustrates the gap between contractual protection and practical enforcement. Many subcontractors are eating costs they explicitly tried to protect against, effectively subsidizing uncertainty rather than passing it through as intended.
Strategic Responses to Tariff Uncertainty Vary
Companies are adopting different strategies to navigate this environment. Some are choosing radical transparency—raising prices when necessary but being direct with customers about tariff impacts. One distributor reported that they discussed adding qualifiers but ultimately decided against it, instead having honest conversations when prices increased. Most customers have understood and haven’t pushed back significantly.
Others are using inventory strategically. Companies with strong cash flow are buying ahead of announced increases, banking material at lower prices to shield customers from future impacts. This requires capital and storage capacity, but it’s proving effective for those who can execute it.
And some are taking a pragmatic view grounded in experience. One material handling company leader noted this isn’t their first experience with significant tariffs and they expect to navigate it successfully again.
What This Means for Your Projects
For developers, brokers, and architects planning projects, several practical takeaways emerge:
Build material contingency into your budgets. The 10-35% range reflects increases on material costs, not total contract value, but it’s what suppliers and subcontractors are actually experiencing. Steel-intensive projects face the highest exposure, though virtually no material category is immune. Even domestic products are seeing price increases as suppliers adjust to the new competitive landscape.
Expect tariff clauses in proposals. They’re now standard practice across the industry. The challenge is that without transparent calculations showing country of origin, border crossing dates, and specific taxed components, it’s difficult to verify whether any specific increase is legitimate or opportunistic.
Timing matters more than usual. Market volatility means pricing today may not hold for projects starting in six months. Strategic distributors with well-managed inventory may be able to offer better near-term pricing by buying ahead of announced increases. And be prepared for the reality that even clear contractual language is proving difficult to enforce when market conditions shift.
Recognize the universal uncertainty. The manufacturers don’t have perfect information. The suppliers are getting contradictory signals. Your general contractor is synthesizing incomplete data. This isn’t an excuse for poor planning, but it is the reality of the current environment.
Moving Forward with Clear Eyes
The tariff situation in construction isn’t a crisis, but it’s not business as usual either. The uncertainty is real, the price impacts are material, and the ripple effects touch every project decision. The industry professionals I spoke with aren’t panicking, but they are adapting—adjusting contracts, managing inventory strategically, and communicating openly with their customers.
At KasCon, we’re taking the same approach: acknowledging the complexity, building appropriate protections into our proposals, and having transparent conversations with our clients about what we’re seeing and what it means for their projects. In an uncertain environment, that clarity—even when the news isn’t entirely comfortable—is the most valuable service we can provide.
The construction industry has weathered trade disputes, material shortages, and economic upheaval before. We’ll navigate this too. But doing so successfully requires all of us—owners, designers, contractors, and suppliers—to communicate clearly, plan realistically, and maintain the flexibility to adapt as conditions continue to evolve.
Contact KasCon to learn how we can help you navigate your next project.
/wp-content/uploads/2019/03/kascon_logo.png00Jeff Kassman/wp-content/uploads/2019/03/kascon_logo.pngJeff Kassman2025-10-21 21:55:082025-10-21 22:02:38Navigating Tariff Uncertainty in Construction: What Industry Leaders are Seeing
In an era of economic uncertainty and shifting market dynamics, successful construction projects require strategic consultation from day one. At KasCon, we’ve evolved from traditional contractors into trusted consultants – and we’ve discovered that our greatest value often comes not from what we build, but from the strategic guidance we provide before the first shovel hits the ground.
The New Reality: When the Numbers Don’t Add Up
Construction costs have skyrocketed while rental rates remain stagnant. What used to cost, for example, $70 per square foot now costs $125, but the $30 per square foot rent hasn’t budged. This fundamental shift has created a crisis of project viability that’s forcing property owners to completely rethink their approach.
We’re seeing deals revisited three and four times as owners struggle with projects that simply don’t pencil out. The traditional model of “build it and they will pay” no longer works in today’s economic climate. Projects are going to the shelf, waiting for market conditions to align or for creative solutions to emerge.
From Contractor to General Business Advisor
This market reality has increased the value of what KasCon has always provided our clients – going beyond traditional construction to business advisors helping clients navigate complex financial decisions. When a client needs their project to work at $2 million but our numbers show $2.5 million, we don’t just deliver bad news. We put on our consultant hat and work collaboratively to find alternative solutions.
Real-world example: A medical practice wanted to purchase an $850,000 building that would require $350,000 in renovations for more space than they needed. Rather than simply providing the construction estimate, we advised them to walk away and leveraged our network to connect them with a better opportunity – a new space in a development where they could own a condo unit at a fraction of the total cost.
This comprehensive advisory approach has become essential for project success. As true partners and advisors we’re not just asking “how much will this cost?” but “does this make business sense, and if not, what are the alternatives?”
The Relationship-Driven Market
Today’s construction market is completely relationship-driven. Success depends not just on competitive pricing, but on trust, experience, and the ability to provide comprehensive guidance beyond traditional construction.
owners need a general contractor who understand:
Market dynamics affecting project feasibility
Alternative approaches when Plan A doesn’t work
The broader business implications of construction decisions
How to navigate complex lease and purchase negotiations and property evaluations
Financial structuring options that optimize project outcomes
The KasCon Advantage
What sets KasCon apart in this challenging environment is our comprehensive approach that goes far beyond traditional contracting. We serve as:
Strategic construction consultants who can help evaluate deal feasibility before you commit capital
Market connectors who leverage our network to introduce you to the right professionals for your specific needs
Business advisors focused on your project’s overall success, not just our construction contract
Experienced guides who can spot potential issues before they become expensive problems
Lease and Purchase advisors who identify construction-related pitfalls in lease and purchase agreements
Conclusion
The construction industry is evolving rapidly, and so is the role of construction professionals. Today’s successful projects require contractors who understand that building expertise is just the foundation. Real value comes from strategic thinking, market knowledge, relationship networks, and the experience to guide clients toward decisions that make both construction and business sense.
At KasCon, we’ve embraced our role as advisors and consultants – we’re not just building structures, we’re building successful outcomes for our clients. In a market where the difference between profit and loss often comes down to early-stage decision making, having the right general contractor can make all the difference.
Ready to discuss your next project? Contact KasCon to learn how our consulting approach can help ensure your project’s success from concept to completion.
/wp-content/uploads/2019/03/kascon_logo.png00Jeff Kassman/wp-content/uploads/2019/03/kascon_logo.pngJeff Kassman2025-07-14 15:41:192025-10-21 21:55:03Why Construction in Today’s Market Demands a Strategic Advisor, Not Just a Builder
Uncertainty has become the only certainty in construction pricing. The traditional methods of estimating and budgeting are proving inadequate in a market where prices can fluctuate dramatically between concept and completion. This new reality demands a fundamental shift toward greater transparency and precision in how projects are priced from the earliest stages of development.
The Escalating Impact of Construction Costs
As construction prices continue to increase, the eventual cost occupies an increasingly significant role in the viability of every project and development opportunity. Making a proper analysis of costs early in the process has become critical to avoid wasting resources or proceeding with incorrect assumptions. Today’s construction environment presents unprecedented challenges for accurate pricing:
The vast range of construction material choices and options available
Market volatility driven by inflation and anticipated tariffs
Labor constraints and supply chain disruptions
Regulatory changes continuously alter compliance requirements and costs
The Hidden Components That Drive Costs
Beyond the visible elements of any construction project lie numerous systems that significantly impact the total price but are frequently overlooked during conceptual planning:
Ceiling systems, open ceilings, acoustical considerations, decorative lighting
Mechanical and electrical systems
Building automation
Security and access control
Fire protection
Site development requirements
Especially for concept pricing, when full drawings haven’t yet been developed, these “hidden” components need thorough research and consideration. They can dramatically impact the total project cost.
The Industry’s Pricing Dilemma
The construction industry faces a fundamental dilemma in pricing approaches. Many general contracting firms provide artificially low initial estimates to win bids or use a simple cost/square foot to create an estimate, creating a perception of value that rarely materializes. When the true costs inevitably emerge later in the project, clients face difficult decisions: scale back their vision, find additional funding, or abandon the project entirely.
Any contractor can take conceptual information and provide a price that is either so inflated the deal has no chance of succeeding, or low-ball a price that moves things forward but inevitably generates conflicts when reality sets in. Neither approach serves the long-term interests of projects nor instills trust in stakeholders.
Developing Accurate Conceptual Pricing: A Better Approach
So how is it possible to develop accurate, well-qualified conceptual pricing that will hold up over time and remain within an appropriate range of the final construction cost?
The answer lies in deploying experienced professionals to analyze all issues and develop estimates that have real value towards informing budgets long before documentation is complete. This approach includes:
Thoroughly investigating and analyzing existing conditions
Taking time to understand the client’s intent, including practicality, aesthetic, and functional requirements
Engaging trusted subcontractors who can conceptualize the likely end-product and provide realistic current trade pricing
Developing plans and narratives that communicate assumptions so designs can be checked against these guidelines as they develop—the only reliable way to keep a project on budget
Considering costs outside of construction that need to be addressed in the total project budget
Collaborating effectively with design teams to ensure what is drawn aligns with what was priced
The KasCon Approach: Transparency as a Core Value
At KasCon, we’ve built our estimating practices around the principle of transparency. Our process includes:
1. Collaborative Planning: Working closely with clients to define assumptions and create solid pricing that informs decision-making.
2. Detailed Breakdowns: Providing comprehensive, line-item breakdowns of all costs so clients see exactly where their money is going.
3. Uncovering Hidden Costs: Researching and accounting for the less obvious components that significantly impact total project costs.
4. Visual Uncertainty Communication: We’ve developed a unique color-coding system that clearly indicates the level of certainty for each line item in our estimates (example on right). Green items represent fixed, highly reliable costs; yellow indicates moderate variability; and red highlights components with significant potential for change due to external factors. This visual approach allows stakeholders to immediately understand which aspects of the estimate carry more risk, facilitating better decision-making.
5. Component-Level Specificity: Rather than relying on broad allowances or industry averages, we create detailed component breakdowns even at the conceptual stage.
For example, our lighting estimates don’t simply apply a per-square-foot allowance.
Instead, we create preliminary lighting layouts based on the intended use and space requirements, then count actual fixture quantities to provide far more accurate pricing (example on left).
We believe that most clients want transparency and accuracy upfront and follow through when it comes time to contract for the work—no surprises and no wasted time chasing unrealistic figures.
The Bottom Line
The most successful projects begin with accurate, transparent pricing that builds trust among all stakeholders. When considering your next construction project, prioritize partners who value transparency, accuracy, and collaborative problem-solving. The initial price tag may appear higher, but the outcome will likely result in a more successful, more cost-effective project.
/wp-content/uploads/2019/03/kascon_logo.png00Jeff Kassman/wp-content/uploads/2019/03/kascon_logo.pngJeff Kassman2025-04-07 15:56:592025-04-08 15:03:30Accurate Construction Budgets Are Make-or-Break for Project Viability in Today’s Market
Navigating Tariff Uncertainty in Construction: What Industry Leaders are Seeing
The construction industry has always navigated market volatility, but the current tariff environment presents an unusual challenge. It’s not just the price increases that are disrupting projects—it’s the uncertainty itself. As someone who has spent decades in commercial construction, I found myself struggling to give clients clear answers about how tariffs would impact their projects. So, I did what any curious general contractor would do: I asked around.
I reached out to manufacturers, suppliers, and subcontractors across our supply chain to understand what they’re experiencing firsthand. Their responses paint a picture that every owner, developer, broker, and architect should understand as they plan projects in 2025 and beyond.
The Price Impact: Real, But Opaque
Across the responses I received from subcontractors and suppliers, material price increases attributed to tariffs range from 10% to 35%, depending on the material and supplier.
But here’s the fundamental challenge: the calculations are almost entirely opaque. Unlike sales tax, which appears as a clear line item on every material purchase showing the exact rate and amount, tariff charges rarely specify from which country the goods came, when they crossed the border, or which specific components are being taxed. Some manufacturers show separate line items for tariff costs, but these are typically percentage adders or dollar amounts without supporting documentation. Others simply cite vague language like “raw material costs.”
This lack of transparency creates questions about whether increases truly reflect tariff impacts or represent broader margin adjustments. Multiple respondents noted they’ve seen increases starting well ahead of tariff implementations, suggesting suppliers are anticipating costs or using the climate to adjust pricing more broadly. One major material purchaser put it bluntly: while there may be basic calculations to justify increases, much of this feels like opportunistic pricing enabled by macro-economic uncertainty.
Uncertainty and Market Paralysis as the Real Cost
More than one industry professional described a “wait and see” attitude taking hold in the market. One subcontractor observed that tariffs are creating a pause in buying decisions, with customers delaying commitments. This hesitation ripples through the entire construction ecosystem—when owners wait to commit, projects stall.
The inconsistency compounds the problem. Multiple respondents mentioned receiving price increase notifications, then retractions, then new announcements weeks later. One distributor described receiving tariff-related communications “almost daily.” This isn’t a one-time adjustment the market can absorb and move forward—it’s ongoing recalibration that makes planning extraordinarily difficult.
The New Normal in Contracts
The tariff environment has made price qualifiers nearly universal. Language like “Tariff Fee” or “Tariff Cost” clauses now appears in most proposals. General contractors and subcontractors are passing these clauses through to clients, creating a cascade of contingencies from manufacturer to end user.
But enforcement remains problematic. Multiple subcontractors reported that despite clear tariff language in their proposals, some clients are refusing to pay increases on existing contracts. One flooring subcontractor shared a particularly difficult example: they ordered a custom rug from Italy in April 2025, prepaying in full. Eight weeks later, upon delivery, they received an additional invoice for a 25% tariff charge with no advance notice. The general contractor refused to pay, and the subcontractor was forced to absorb the cost, or litigate.
This scenario illustrates the gap between contractual protection and practical enforcement. Many subcontractors are eating costs they explicitly tried to protect against, effectively subsidizing uncertainty rather than passing it through as intended.
Strategic Responses to Tariff Uncertainty Vary
Companies are adopting different strategies to navigate this environment. Some are choosing radical transparency—raising prices when necessary but being direct with customers about tariff impacts. One distributor reported that they discussed adding qualifiers but ultimately decided against it, instead having honest conversations when prices increased. Most customers have understood and haven’t pushed back significantly.
Others are using inventory strategically. Companies with strong cash flow are buying ahead of announced increases, banking material at lower prices to shield customers from future impacts. This requires capital and storage capacity, but it’s proving effective for those who can execute it.
And some are taking a pragmatic view grounded in experience. One material handling company leader noted this isn’t their first experience with significant tariffs and they expect to navigate it successfully again.
What This Means for Your Projects
For developers, brokers, and architects planning projects, several practical takeaways emerge:
Moving Forward with Clear Eyes
The tariff situation in construction isn’t a crisis, but it’s not business as usual either. The uncertainty is real, the price impacts are material, and the ripple effects touch every project decision. The industry professionals I spoke with aren’t panicking, but they are adapting—adjusting contracts, managing inventory strategically, and communicating openly with their customers.
At KasCon, we’re taking the same approach: acknowledging the complexity, building appropriate protections into our proposals, and having transparent conversations with our clients about what we’re seeing and what it means for their projects. In an uncertain environment, that clarity—even when the news isn’t entirely comfortable—is the most valuable service we can provide.
The construction industry has weathered trade disputes, material shortages, and economic upheaval before. We’ll navigate this too. But doing so successfully requires all of us—owners, designers, contractors, and suppliers—to communicate clearly, plan realistically, and maintain the flexibility to adapt as conditions continue to evolve.
Contact KasCon to learn how we can help you navigate your next project.
Why Construction in Today’s Market Demands a Strategic Advisor, Not Just a Builder
In an era of economic uncertainty and shifting market dynamics, successful construction projects require strategic consultation from day one. At KasCon, we’ve evolved from traditional contractors into trusted consultants – and we’ve discovered that our greatest value often comes not from what we build, but from the strategic guidance we provide before the first shovel hits the ground.
The New Reality: When the Numbers Don’t Add Up
Construction costs have skyrocketed while rental rates remain stagnant. What used to cost, for example, $70 per square foot now costs $125, but the $30 per square foot rent hasn’t budged. This fundamental shift has created a crisis of project viability that’s forcing property owners to completely rethink their approach.
We’re seeing deals revisited three and four times as owners struggle with projects that simply don’t pencil out. The traditional model of “build it and they will pay” no longer works in today’s economic climate. Projects are going to the shelf, waiting for market conditions to align or for creative solutions to emerge.
From Contractor to General Business Advisor
This market reality has increased the value of what KasCon has always provided our clients – going beyond traditional construction to business advisors helping clients navigate complex financial decisions. When a client needs their project to work at $2 million but our numbers show $2.5 million, we don’t just deliver bad news. We put on our consultant hat and work collaboratively to find alternative solutions.
Real-world example: A medical practice wanted to purchase an $850,000 building that would require $350,000 in renovations for more space than they needed. Rather than simply providing the construction estimate, we advised them to walk away and leveraged our network to connect them with a better opportunity – a new space in a development where they could own a condo unit at a fraction of the total cost.
This comprehensive advisory approach has become essential for project success. As true partners and advisors we’re not just asking “how much will this cost?” but “does this make business sense, and if not, what are the alternatives?”
The Relationship-Driven Market
Today’s construction market is completely relationship-driven. Success depends not just on competitive pricing, but on trust, experience, and the ability to provide comprehensive guidance beyond traditional construction.
owners need a general contractor who understand:
The KasCon Advantage
What sets KasCon apart in this challenging environment is our comprehensive approach that goes far beyond traditional contracting. We serve as:
Conclusion
The construction industry is evolving rapidly, and so is the role of construction professionals. Today’s successful projects require contractors who understand that building expertise is just the foundation. Real value comes from strategic thinking, market knowledge, relationship networks, and the experience to guide clients toward decisions that make both construction and business sense.
At KasCon, we’ve embraced our role as advisors and consultants – we’re not just building structures, we’re building successful outcomes for our clients. In a market where the difference between profit and loss often comes down to early-stage decision making, having the right general contractor can make all the difference.
Ready to discuss your next project? Contact KasCon to learn how our consulting approach can help ensure your project’s success from concept to completion.
Accurate Construction Budgets Are Make-or-Break for Project Viability in Today’s Market
Uncertainty has become the only certainty in construction pricing. The traditional methods of estimating and budgeting are proving inadequate in a market where prices can fluctuate dramatically between concept and completion. This new reality demands a fundamental shift toward greater transparency and precision in how projects are priced from the earliest stages of development.
The Escalating Impact of Construction Costs
As construction prices continue to increase, the eventual cost occupies an increasingly significant role in the viability of every project and development opportunity. Making a proper analysis of costs early in the process has become critical to avoid wasting resources or proceeding with incorrect assumptions. Today’s construction environment presents unprecedented challenges for accurate pricing:
The Hidden Components That Drive Costs
Beyond the visible elements of any construction project lie numerous systems that significantly impact the total price but are frequently overlooked during conceptual planning:
Especially for concept pricing, when full drawings haven’t yet been developed, these “hidden” components need thorough research and consideration. They can dramatically impact the total project cost.
The Industry’s Pricing Dilemma
The construction industry faces a fundamental dilemma in pricing approaches. Many general contracting firms provide artificially low initial estimates to win bids or use a simple cost/square foot to create an estimate, creating a perception of value that rarely materializes. When the true costs inevitably emerge later in the project, clients face difficult decisions: scale back their vision, find additional funding, or abandon the project entirely.
Any contractor can take conceptual information and provide a price that is either so inflated the deal has no chance of succeeding, or low-ball a price that moves things forward but inevitably generates conflicts when reality sets in. Neither approach serves the long-term interests of projects nor instills trust in stakeholders.
Developing Accurate Conceptual Pricing: A Better Approach
So how is it possible to develop accurate, well-qualified conceptual pricing that will hold up over time and remain within an appropriate range of the final construction cost?
The answer lies in deploying experienced professionals to analyze all issues and develop estimates that have real value towards informing budgets long before documentation is complete. This approach includes:
The KasCon Approach: Transparency as a Core Value
At KasCon, we’ve built our estimating practices around the principle of transparency. Our process includes:
1. Collaborative Planning: Working closely with clients to define assumptions and create solid pricing that informs decision-making.
2. Detailed Breakdowns: Providing comprehensive, line-item breakdowns of all costs so clients see exactly where their money is going.
3. Uncovering Hidden Costs: Researching and accounting for the less obvious components that significantly impact total project costs.
4. Visual Uncertainty Communication: We’ve developed a unique color-coding system that clearly indicates the level of certainty for each line item in our estimates (example on right). Green items represent fixed, highly reliable costs; yellow indicates moderate variability; and red highlights components with significant potential for change due to external factors. This visual approach allows stakeholders to immediately understand which aspects of the estimate carry more risk, facilitating better decision-making.
5. Component-Level Specificity: Rather than relying on broad allowances or industry averages, we create detailed component breakdowns even at the conceptual stage.
For example, our lighting estimates don’t simply apply a per-square-foot allowance.
We believe that most clients want transparency and accuracy upfront and follow through when it comes time to contract for the work—no surprises and no wasted time chasing unrealistic figures.
The Bottom Line
The most successful projects begin with accurate, transparent pricing that builds trust among all stakeholders. When considering your next construction project, prioritize partners who value transparency, accuracy, and collaborative problem-solving. The initial price tag may appear higher, but the outcome will likely result in a more successful, more cost-effective project.