How Do You Bid Jobs When Tariffs Keep Changing Prices?
You priced the steel in March. The job starts in September. Your supplier’s quote just went up, and your bid didn’t.
When material prices move, a bid that was profitable on paper can lose money in the field. This page shows a contractor or estimator how to protect the margin before signing.
Dr. Paul Borosky, Business Consultant, has helped 1,000+ owners figure out where their profit leaked.
Talk to Dr. PaulCall or text (321) 948-9588.
Last Updated: November 2026
Real World Help From Dr. Paul
Construction Business Plan Template
A plan and a profit model built for contractors.
See the construction templateHow This Guide Works
Short version: Doctor Owl’s answer plus the 3 steps below. Long version: in Dr. Paul’s Fabled Forest Business School Series, Bella wins a big lodge job, then watches the price of her steel brackets jump before the job even starts. The dollar example follows the trend section.
- Add an expiration date to your quote, like 30 days.
- List the three materials on the job most likely to change in price.
- Call your supplier and ask how long they’ll hold their price on those three.
How Did Bella Save the Lodge Job?
Bella won the bid for the elk family’s new lodge. Big job, good client. Six weeks later, her bracket supplier called. New price, a lot higher.
Doctor Owl asked, “Is this a fire, or a foundation?” The bracket price was a fire on this job. Her bidding habits were the foundation for every job after. They used Dr. Paul’s Organize-Plan-Grow™ Strategy.
- Organize. Chuck compared the bid to the new quotes. Brackets and fasteners had moved the most. Lumber had barely changed.
- Plan. Bella showed the elk family the supplier’s new quote and asked to split the difference. She added a 30-day expiration and a material price clause to every bid after that.
- Grow. On every job now, Chuck tracks bid price against paid price for the top three materials. If a gap shows up, they know before the job ends.
The elk family agreed. They’d rather share a bump than lose their builder.
What’s Happening to Material Prices?
In a May 2026 report with CMiC, Dodge Construction Network found 72% of contractors expect negative impacts from policy and cost pressures, including tariffs, even as most still expect growth.
The American Institute of Architects has pointed to rising tariff rates on many construction inputs as one of the things holding back growth. For a small contractor, that means the price you bid and the price you pay can drift apart.
Source: Dodge Construction Network and CMiC, Key Business Trends for U.S. Contractors (May 2026).
What Does That Mean for Your Bids?
Margins on most construction jobs are thin. A material increase you didn’t plan for comes straight out of your profit, not the client’s.
The longer the time between bid and buy, the more risk you’re carrying. That’s the gap to manage.
How Do You Write Bids That Hold Up?
- Put an expiration date on every quote. Thirty days is common. Longer means more risk.
- Ask for a price adjustment clause. On long jobs, a clause tied to material costs shares the risk.
- Lock in big items early. Buy or reserve the costliest materials as soon as the job is signed.
- Track bid against paid. For your top materials, on every job.
- Review suppliers twice a year. A second quote keeps the first one honest.
What Can One Unplanned Increase Cost?
Illustration only. Round numbers, not a real company.
Say a job’s steel was bid at $20,000 and costs $23,000 when you finally buy it. That $3,000 doesn’t come from the client. It comes from your profit. On a job with a modest margin, that can take a big bite out of what you planned to make.
Want to tighten your bidding overall? The QBP lesson on how to bid a construction job walks through it. Price changes after the job starts? Use a written change order. Plan your margins in the construction business plan template.
Want Help Protecting Your Margins?
Bring a recent bid and the final costs to a free 15-minute call with Dr. Paul. You leave knowing where the margin went, and what more help would cost if you want it.
Or call or text (321) 948-9588.
What Do Contractors Ask About Tariffs and Bids?
Will clients accept a price adjustment clause?
Many will on long jobs, especially if you explain it up front. It’s harder to add after signing.
Should I just add a cushion to every bid?
A small contingency is normal. A big cushion can lose you the bid. Clauses and early buying are usually better.
Is this legal advice?
No. Have an attorney review any contract language before you use it.
About the Author
Dr. Paul Borosky, DBA, MBA, helps contractors protect the margin they bid. His clients are in all 50 states and Canada.
Sources
- Dodge Construction Network, Key Business Trends for U.S. Contractors (May 2026).
- The American Institute of Architects, Consensus Construction Forecast (January 2026).