b'BENCHMARKScontinue, causing contractors toearly contractor involvement may beshould immediately begin strategizing seek termination. When determininguseful for assessing and addressingto ensure they are not unexpectedly the options for terminating atariff risks.bearing any unforeseen cost increases contract, consider whether there areCONCLUSION resulting from the ongoing trade war. unilateral optionswhether it be for convenience, due to insolvencyFundamentally, the recent tariff-Note: This article is of a general nature or as a result of an extended forceand trade-related challenges haveonly and is not exhaustive of all possible majeure, if applicable. Contractorsintroduced significant uncertainty tolegal rights or remedies. In addition, laws should carefully review the impactthe Canadian construction industry.may change over time and should be that each termination scenario has onMuch like five years ago during theinterpreted only in the context of particular contract compensation, as they oftenearly stages of the COVID-19 pandemic,circumstances such that these materials differ depending on the type projects are likely to experience a periodare not intended to be relied upon or taken of termination.of intense review to ensure they meetas legal advice or opinion. Readers should 9.Good faith: Under Canadian law,the new market realities. If they have notconsult a legal professional for specificthere is a duty for parties to act indone so already, construction companiesadvice in any particular situation.good faith. Further, it takes a great deal of hard work and effort to develop long-term relationships in the construction industry. Therefore, ensure that you consider both your ongoing business relationships and your duty to act in good faith before reacting to tariffs.While the entirety of the contract should always be reviewed, these are some of the key clauses that can impact tariff-related risks and potential claims.FUTURE CONTRACTS: CONSIDER RISKS ASSOCIATED WITH TARIFFSIn addition to considering all of the contractual risks above, there are several big-picture considerations that contractors can take when reviewing future projects and contracts.1.Understand project risks:Contractors are increasingly asked to understand and quantify the tariff risks/vulnerabilities in their work and work together with owners to manage these risks. A clear understanding of the projects supply chain is critical.2.Be mindful of tariff-relatedprocurement requirements: Some owners using formal procurement processes are considering, or have already introduced, tariff-related elements into their procurement evaluations and contracts. Contractors responding to these procurements should ensure they are responsive to these elements.3.Project delivery model approaches:Align on project delivery approaches that appropriately manage/assign tariff-related risk to the project. The contract can be utilized as a tool to encourage collaboration. A collaborative delivery model and Issue 2 | Summer Edition | 2025 BUILD MANITOBA 23'