Navigating Tariffs in Real Estate Development & Construction Projects
- Peyman A Nejad
- Nov 6
- 2 min read
Protecting Projects, Budgets, and Investments in a Volatile Market
Tariffs and trade restrictions are reshaping the global construction landscape, driving up material costs, extending lead times, and introducing new layers of uncertainty. For developers, investors, and tenants, these dynamics can quickly disrupt even the most carefully planned projects.
In today’s market, where supply chain disruptions and tariff fluctuations have become the norm, understanding how to anticipate and mitigate these risks is not just operationally smart — it’s a strategic necessity.
At PAN Partners, our Project & Development Management Services (PDMS) team works closely with clients to identify challenges early and protect both project timelines and financial outcomes.
1. Avoiding Delays and Protecting Schedules
We partner with design and construction teams to ensure projects remain on track despite volatile market conditions:
Accelerate early specification and procurement of key materials and equipment.
Identify long-lead items in project schedules and recommend alternative specs or sources.
Release long-lead materials early to prevent downstream delays.
Develop phasing strategies that allow construction to continue around delayed items.
Leverage our PDMS relationships to expedite authorities having jurisdiction (AHJ) plan reviews and permit issuance.
2. Mitigating the Impact of Rising and Fluctuating Construction Costs
Our cost-management approach ensures budgets remain resilient to pricing shocks and market swings:
Build realistic budgets that include escalation and potential tariff exposure.
Conduct competitive procurement to optimize pricing and value.
Require trade contractors to hold proposed pricing for defined periods.
Structure contracts to cap late change orders and reduce exposure to cost escalation.
Define force majeure clauses carefully to ensure tariffs are not classified as uncontrollable events.
3. Strategic Project Delivery for Lasting Value
Through an integrated PDMS framework, we help clients make data-driven decisions — from early design and cost modeling to procurement and execution. Our approach combines strategic foresight with hands-on project delivery expertise, ensuring that tariff-related volatility never compromises investment returns or long-term business objectives.
At PAN Partners, we bridge the gap between strategy and execution in real estate development. Our multidisciplinary team brings decades of experience across design, construction, finance, and project delivery, helping clients navigate complex challenges and achieve predictable outcomes — even in unpredictable markets.
Interested in learning how PAN Partners can help protect your next project from cost volatility and schedule risks?
📩 Contact our PDMS team to start a conversation.
PAN is the leading global Management Consulting firm for building realestate developer, design & construction industry and investor alike. Our key strengths lie in structural engineering, cost management, project management oversight, claims consulting, scheduling, dispute resolution, and expert testimony. By applying our deep expertise and industry insights, we work closely with our clients to deliver exceptional and sustainable outcomes throughout the entire lifecycle of their assets.
This information expresses the views of the author as of the date indicated and such views are subject to change without notice. PAN Partners has no duty or obligation to update the information contained herein. This is being made available for informational purposes only and should not be used for any other purpose. And information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of author. © 2025 PAN Partners, LLC
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