EJCDC® contract documents were recently featured in a blog post for the Construction Specifications Institute by EJCDC delegate Kevin O'Beirne.
O'Beirne's blog post focuses on the potential impact of the tariffs proposed by the Trump administration on your current and upcoming construction contracts. Specifically referencing two of EJCDC's most popular agreements — the C-700 Standard General Conditions of the Construction Contract and the C-800 Guide to the Preparation of Supplementary Conditions - O'Beirne notes that EJCDC contracts already include provisions specifying the responsible party for tariffs as the contractor.
O'Beirne writes:
"…EJCDC documents for design-bid-build project delivery expressly obligate the contractor to pay taxes applicable to the work, which, by implication, includes tariffs. [EJCDC] documents further provide for an increase in the contractor’s compensation in the event taxes change after the date the parties agreed upon pricing for the work. [It also establishes] procedures and associated time limits for the parties to submit demands for a change in compensation, contract times, or other relief under the contract, although such procedures are not addressed in this article.
It is quite possible that many of the new tariffs will have an effect on current and future construction projects. Many new tariffs are substantial and are likely to prompt contractors affected thereby to pursue additional compensation from the project owner. Widely used standard construction contracts, such as those that include [the EJCDC C-700] as their general conditions, not only expressly obligate the contractor to pay taxes on the work, which includes tariffs, but also allow the contractor additional compensation when such taxes increase after the parties agreed upon the contract price.
Over the last 50 years, Engineers Joint Contract Documents Committee® (EJCDC) has developed and updated fair and objective standard documents specifically written for infrastructure projects in the United States. Each EJCDC® Contract Document is systematically prepared, reviewed and analyzed by committees of experienced engineering design and construction professionals, owners, contractors, professional liability and risk management experts, with the participation and advice of legal counsel.
Learn more at EJCDC.org.
