By MIKE YAZBEC

In today’s construction landscape, tariff prices are more than mere economic variables.

They are critical factors that can determine a project’s budget, schedule and feasibility. The volatility of global trade policies highlights the importance of establishing strategic partnerships early on for project success. Selecting a construction partner with expertise is essential.

Why Early Partnership Matters

Engaging a construction partner early in your project offers significant benefits across all market sectors – including education, healthcare, senior care, retail, commercial and industrial. Early involvement enables construction teams to provide insights on items affected by tariff costs, such as constructability, scheduling, cost modeling and design coordination, resulting in a more streamlined and cost-effective process from the outset.

S. M. Wilson, like many successful firms, cultivates a culture of teamwork and accountability by aligning project outcomes with team-wide incentives. This approach fosters innovation and a shared commitment to the client’s objectives.

Repeat business often arises from consistently positive client experiences.

Our high percentage of repeat business is a direct result of the experience we offer our clients. We create a customized plan for each project regardless of its size and scope, which allows us to plan for current market conditions.

Every client is assigned a dedicated client advocate, offering concierge services unique to your needs and delivering proactive services throughout your project journey.

Rising Material Costs and the Need for Early Cost Certainty

Increased tariffs on essential construction materials – such as structural steel, aluminum and electrical components – cause significant cost volatility. This unpredictability can disrupt budgets and timelines.

The uncertainty surrounding tariffs creates a major challenge for long-term budgeting and planning. When owners involve us early, we can proactively identify risk areas, protect the budget before the drawings are even complete and create a plan of action.

Construction managers provide immediate value during the early design phase by aligning budgets with current market realities, identifying materials impacted by tariffs and offering viable alternatives – insights that cannot wait until bid day.

Strategic Procurement: Design/Build Enables Faster Smarter Decisions

Tariffs not only increase costs but also extend lead times and limit availability. The design-build model, which integrates the construction manager and design team from the beginning, allows projects to pivot quickly and secure long-lead items before tariffs rise.

This agility is only achievable through early teamwork, where the construction manager’s procurement strategy directly influences the design and delivery schedule from the beginning.

We are well-versed in the design/build delivery method, having executed numerous projects with this approach. By integrating with the design team early and overseeing the design process, we can enhance delivery, reduce risks and promote project success. Proficiency in strategic procurement enables the team to acquire long-lead items and respond promptly to market fluctuations, ensuring your project remains on schedule.

Constructability and Value Engineering: Smarter Not Just Cheaper

Early involvement means we can conduct constructability reviews that bridge the gap between design intent and field execution. Team members identify opportunities to simplify systems, prefabricate assemblies or substitute locally sourced, tariff-free materials – delivering savings in both time and cost without sacrificing quality or aesthetics.

Another key advantage of early involvement is the ability to conduct constructability reviews, evaluations connecting design intent with field execution.

Constructability isn’t just about saving dollars. It’s about saving months, according to Steve Meeks, our VP of special projects, estimating and preconstruction projects estimating at S. M. Wilson. This is only possible with early discussions with the client and preparation from the very beginning.

In today’s tariff-driven economy, value engineering has undergone significant evolution. It is no longer about eliminating features; it is about making informed decisions that preserve quality and function while avoiding cost pitfalls.

At our firm, value engineering has evolved into target value delivery,  a team effort that focuses on making informed decisions to preserve your project’s vision while designing to a designated budget to avoid making cuts to meet the budget. Team members work closely with owners and architects to discover innovative ways to deliver results even as global pricing shifts.

Meeks says it’s a team effort between the construction manager, architect and owner to find smarter ways to deliver the same results even when materials or systems are under pressure from global pricing shifts.

By leveraging this partnership, early owners can make strategic adjustments that respect the project’s original vision.

Mitigating Supply Chain Disruptions

Tariffs often create ripple effects throughout the global supply chain, resulting in delays and necessitating logistical adjustments. A construction manager involved in the design process can anticipate these disruptions and propose alternatives or even sequence the project to navigate critical path bottlenecks.

Without a CM monitoring the procurement landscape daily, you risk designing something that you can’t build – or that can’t be built on time.

Even without higher tariff costs, a disruption in the supply chain – or the potential for one – can lead to elevated prices. Manufacturers often try to build up material stock but may need to transfer increased costs to clients to manage larger inventories and storage.

S. M. Wilson advises clients to start planning early to lock in lower prices. When prices begin to increase, it takes considerably longer for them to drop again. In many cases, they may never return to their previous level, according to Mike Mangiore, our CFO. Many clients cannot afford to wait years for prices to drop, he says. We emphasize the importance of starting early, ensuring that prices remain within reach rather than facing higher costs than expected.

The Bottom Line

In a world where tariffs and supply chain disruptions are reshaping the construction landscape, the importance of a strong construction partner early in the process cannot be overstated. These early alliances ensure more thoughtful planning, better risk management and more resilient outcomes.

By choosing a partner like S. M. Wilson, you will have a true ally in navigating the complexities of tariffs and supply chain challenges, allowing you to build with confidence.

Mike Yazbec is president of S. M. Wilson & Co.