As of April 2, 2025, the new round of tariff announcements has taken effect—and the impact on our industry is immediate. Material prices are climbing, shipping delays are extending timelines, and overall uncertainty is rippling through the construction sector. Whether you’re a general contractor, subcontractor, or small construction business owner, it’s critical to take proactive steps over the next three months to protect both your business and your peace of mind.
Here are 10 practical ways to navigate the turbulent months ahead, keep your operations resilient, and care for yourself in the process:
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1. Review All Contracts Immediately
Make sure your contracts account for pricing fluctuations. If you haven’t already, add escalation clauses to protect against material cost surges due to tariffs. This ensures you won’t be stuck absorbing price hikes that weren’t part of the original budget.
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2. Lock in Pricing and Secure Materials Early
If possible, purchase materials now before additional tariffs raise prices further. Build relationships with local suppliers and negotiate bulk deals to avoid the uncertainty of international shipping and tariff surcharges.
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3. Communicate Clearly With Clients
Your clients may not understand the ripple effects of tariffs. Be transparent about how these changes can impact costs and timelines. A well-informed client is more likely to be patient and understanding, especially if you’ve built trust early in the process.
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4. Get Your Insurance in Order
Protect What You’ve Built With BGES Group – The Construction Insurance Experts
As uncertainty looms, your business insurance becomes more important than ever. BGES Group specializes in construction insurance for contractors throughout the Tri-State area (New York, New Jersey, and Connecticut). Whether you’re a solo operator or managing a crew of 50, we tailor coverage to your specific needs — from general liability and workers’ comp to commercial auto and umbrella policies.
Why Contractors Choose BGES Group:
• Fast, friendly service that understands the construction world
• Competitive pricing with top-rated carriers
• Real-world experience — we know what keeps you up at night
Call Gary Wallach today at 914-806-5853 or email bgesgroup@gmail.com. Let’s protect your business before the next big surprise hits.
Because one mishap without the right insurance can be more costly than any tariff.
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5. Diversify Your Supplier Base
If you’ve been relying on one or two major suppliers (especially overseas), now’s the time to diversify. Look for regional sources or even recycled and repurposed materials to buffer against long lead times and price volatility.
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6. Tighten Your Project Scheduling
Time is money—and delays can cost even more in today’s environment. Tighten your scheduling systems to avoid gaps between subcontractors, wasted time on-site, or idle equipment. Use project management software to streamline communication and coordination.
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7. Reassess Your Budget Projections
Inflation, tariffs, and increased fuel costs all combine to blow up your original numbers. Review your budgets and adjust profit margins, contingency funds, and bids accordingly. It’s better to revise now than to find yourself short on funds mid-project.
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8. Take Care of Your Crew
Rising stress levels aren’t just hitting owners—they’re affecting your workers, too. Make sure your team is supported with open communication, safe working conditions, and clear expectations. A steady crew is your greatest asset in uncertain times.
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9. Take Care of You
Running a construction business is always stressful, and the added pressure from tariffs can push you to the brink. Don’t burn out. Make time to unplug, delegate when you can, and lean on your network—whether that’s your business peers or your family. Your mental health is as vital as your financial health.
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10. Get Strategic With Technology
Use the next three months to modernize your business wherever possible. Drone inspections, estimating software, accounting platforms, and AI tools like SEONA AI (which I personally use) can help you work smarter, not harder. I get 3 to 5 calls a day using SEONA AI — imagine what it could do for you!
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Final Thoughts: It’s Not About Panic — It’s About Preparation
Tariffs may slow the industry down, but with the right tools, support, and insurance coverage, your business can weather this storm and come out stronger. Think of the next three months as a challenge—and an opportunity—to fine-tune your operation, safeguard your finances, and build your resilience.
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About BGES Group
BGES Group is a trusted construction insurance specialist serving contractors in New York, New Jersey, and Connecticut. We’re here to give you peace of mind with tailored policies, expert advice, and the kind of responsive service you’d expect from someone who actually knows the construction world.
Contact Gary Wallach today:
Phone: 914-806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com
From general contractors to specialty trades, BGES Group has your back.
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Stay safe, stay sharp, and stay covered.
Your future self will thank you.