The U.S. construction industry is bracing for another round of price volatility as the federal government recently announced steep tariff hikes on steel and aluminum imports. Duties on Chinese steel and aluminum are set to double, increasing from 25% to 50%, and other global trade restrictions could further impact supply chains.
For general contractors, subcontractors, developers and suppliers, these tariff changes introduce significant financial risk, particularly for projects with fixed-price contracts that do not account for cost increases. With steel and aluminum among the most widely used materials in construction, these new tariffs could cause budget overruns, delays and legal disputes.
“The construction industry operates on tight margins, and sudden cost increases like these can throw entire projects into financial uncertainty,” said Josh Levy, CEO and co-founder of Document Crunch. “If contractors don’t know what’s in their contracts, they could end up eating the cost of these tariffs—sometimes in the millions of dollars.”
Industry leaders and risk managers are now faced with a pressing question: How can firms protect themselves from sudden tariff-driven cost increases?
To help contractors assess and mitigate risk, AI-powered document intelligence and compliance platform Document Crunch, in partnership with the Nemetschek Group, has launched a free Tariff Risk Assessment Tool. The tool is designed to help construction firms quickly analyze their contracts for exposure to tariff-related cost fluctuations, providing instant clarity on financial and legal obligations.
Why Tariffs Create Contract Risks for Construction Firms
The construction industry is no stranger to material cost fluctuations, but tariffs present a unique challenge. Unlike market-driven supply chain price shifts, tariffs are imposed suddenly due to geopolitical policies and trade disputes—often without warning.
For construction professionals, this creates three major risks:
- Locked-in Pricing with No Adjustments: Many projects are bound by contracts signed months or years in advance—and these agreements often lack clauses that allow for price renegotiations due to tariffs.
- Unclear Cost Responsibility: When tariffs increase costs, who absorbs the financial burden? The contractor, supplier or client? Without clear contract language, firms risk unexpected cost overruns.
- Legal and Financial Uncertainty: Many contractors don’t have the time or resources to manually review contracts to determine if they contain price adjustment clauses or force majeure provisions that may provide relief.
“One of the biggest problems we see is that many contractors assume they have protection in their contracts when, in reality, they don’t,” Levy said. “Without the right clauses in place, you could be stuck footing the bill for something completely outside of your control.”
This lack of clarity is especially problematic for small- and mid-sized contractors who cannot afford expensive legal reviews but still need to protect themselves from financial losses.
How the Document Crunch Tariff Risk Assessment Tool Works
Recognizing the immediate need for risk assessment, Document Crunch has launched a free, AI-powered Tariff Risk Assessment Tool that provides contractors with instant visibility into their contractual exposure.
Using AI-driven document analysis, the tool scans contracts for key risk indicators, such as:
- Price Adjustment Clauses: Identifies language that allows cost-sharing for material price changes.
- Force Majeure and Supply Chain Disruptions: Highlights clauses that protect against delays due to tariffs.
- Change in Law Provisions: Determines whether new tariffs qualify as a reimbursable project cost.
- Notice Requirements: Ensures contractors meet deadline and format obligations for reporting cost changes.
“Contractors don’t have weeks to dig through contracts—our AI can analyze them in minutes and flag exactly where you may have risk exposure,” Levy said.
By automating this process, Document Crunch eliminates the need for time-consuming manual contract reviews, enabling firms to proactively address financial risks before they escalate.
Who Can Use It?
- Available for free to general contractors, subcontractors, material suppliers and developers.
- Users can assess up to 10 contracts—a limit designed to cover most active projects a user is managing today.
How to Access It:
- Sign up via the Document Crunch website.
- Upload contracts for automated AI-powered analysis.
- Receive instant insights on tariff-related risks.
Why AI-Powered Document Intelligence Is Critical for the AEC Industry
Beyond tariffs, document intelligence is becoming an essential risk management tool for construction firms. As the industry faces increasingly complex regulatory environments, AI-powered platforms like Document Crunch help firms proactively manage risks, reduce disputes and protect profit margins.
“We’re seeing more firms adopt AI for contract management and general compliance across all project documents, not just for tariffs but for all kinds of project risks,” Levy said. “The days of manually combing through project documents are over; technology can help construction firms stay ahead of financial threats.”
Here’s why more construction firms are turning to AI-driven contract analysis:
- Faster Risk Assessment: AI scans complex documents in minutes instead of days or weeks, accelerating project approvals and financial planning.
- More Informed Decision-Making: Contractors get clear, actionable insights, eliminating guesswork in contract negotiations.
- Stronger Financial Protection: By identifying cost exposure early, firms can renegotiate terms or adjust pricing strategies before cost increases impact profitability.
- Scalability: Large firms managing dozens of contracts across multiple projects can automate compliance and risk checks, reducing administrative burdens.
Don’t Let Tariffs Put Your Projects at Risk
The construction industry is at a critical moment—and firms cannot afford to wait. Tariff increases are already driving up costs, and without contract protections, companies may be forced to absorb unexpected expenses that cut into margins.
The good news: The Document Crunch Tariff Risk Assessment Tool is free to use—and provides immediate clarity on financial exposure.
“We built this tool because we believe contractors deserve to know where they stand,” Levy said. “With tariffs hitting the industry hard, this is about more than just business—it’s about doing the right thing to help the industry navigate uncertainty. This is a true moment in time and we want to help the industry sustain itself through this time.”
