Earlier this month, new tariffs on aluminum and steel imports went into effect, adding fresh uncertainty to an already volatile construction market. With further duties on construction-related machinery under consideration, developers and institutions alike are asking: What does this mean for my project budget?

The reality is that these changes are already having an impact.

Tariffs are just one more challenge facing an industry grappling with high material prices, labor shortages, and elevated interest rates. For organizations planning major capital investments—such as hospitals, universities, museums, and government facilities—this is a time for careful budgeting, strategic planning, and expert cost guidance.

At Becker & Frondorf, our cost estimators are working proactively with clients to address the cost implications of tariffs and keep projects financially on track. Our team is continuously monitoring the evolving tariff landscape and updating clients as new information and impacts emerge.

Photo(s) © Anthony Cracha

Tariffs: What They Mean for Project Budgets

Mike Zaidel, Partner at Becker & Frondorf and a seasoned cost estimator with over 30 years of experience, is closely monitoring how these tariffs are reshaping construction costs.

“We’re increasing our estimates by 3% to 5% to reflect the new tariffs,” Mike explains. “That’s in addition to the typical annual escalation of about 5%. Add in higher borrowing costs, and a new building today could be 10% more expensive than it would have been last year.”

This added financial pressure is especially critical in sectors with complex construction requirements and long timelines—like higher education and healthcare—where inaccurate forecasting can disrupt entire capital programs.

Mike has been a vocal expert on the subject, frequently advising clients and project stakeholders on how to adapt to shifting market forces. Earlier this year, he was featured in The Philadelphia Inquirer discussing the impact of proposed tariffs and federal policy changes on construction pricing and capital planning.

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How Our Estimators Help Clients Stay Ahead

At Becker & Frondorf, we don’t just deliver cost estimates—we help our clients make informed decisions. Our estimators are actively working with clients and design teams to minimize the impact of tariffs through smart, responsive estimating practices, including:

• Escalation Modeling: We integrate both standard inflation and current tariff-related adjustments into every estimate, giving clients a more realistic sense of future construction costs.
  

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• Market Intelligence: We leverage industry databases, historical benchmarking, and decades of hands-on experience to assess current market conditions and pricing trends. This data-driven approach allows us to provide accurate, timely insights into material costs and availability—helping clients make informed decisions in a rapidly changing environment.

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  Design Flexibility: We work alongside architects and engineers to identify alternative materials and systems that can help mitigate the impact of tariff-sensitive products without compromising design intent.

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• Tailored Estimates: Rather than a one-size-fits-all approach, we work closely with each client to develop custom estimates in formats that align with their specific goals, standards, and reporting needs. This results in greater clarity, higher satisfaction, and a deeper understanding of how tariff-related and market-driven costs may impact their projects.

Worried About How Tariffs Might Affect Your Project? Let’s Talk.

If you’re concerned about how tariffs or shifting market conditions could impact your construction project, now is the time to re-evaluate your budget assumptions. Whether you’re in the early planning stages or reassessing a past estimate, our experienced cost estimators can help you navigate uncertainty with clarity and confidence.

Becker & Frondorf helps clients across a variety sectors—including higher education, healthcare, and government—to deliver customized, format-friendly estimates that align with your standards and improve understanding of cost impacts. Our goal is to help you stay on budget, stay informed, and stay ahead.

📧 Contact Mike Zaidel, Partner at Becker & Frondorf, at mzaidel@beckerfrondorf.com or at 267-671-2420 to understand how tariffs and other market forces could affect your next project.

Mike and our cost estimating team of seasoned professionals are ready to help you plan with precision.