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You are here: Home » News » Newsletter: From Tariffs to Low Bids, What’s Shaping Construction Risk Today

May 20, 2025

Newsletter: From Tariffs to Low Bids, What’s Shaping Construction Risk Today

By Partner ESI

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How Will the Trade War Affect Commercial Construction?
As the Trump administration’s trade policy continues to evolve, CRE stakeholders are expressing concern over the impact of tariffs on the cost of construction projects. With new tariffs proposed, imposed, or lifted almost daily, the full impact remains unclear. Still, understanding factors like regional market conditions, project specifics, and risk mitigation strategies can help you prepare. In this GlobeSt article, Partner’s Robert W. Barone, RA, LEED AP, offers hope in the face of tariffs and how they may affect your construction deals. Side Image

A Safety Net for Construction in Uncertain Times
With renewed tariff uncertainty impacting project costs, lenders are turning to SureBuild as a strategic way to manage construction risk. While tariffs alone may not cause borrower failure, they can strain budgets and timelines—making SureBuild’s project completion insurance a valuable backstop. While SureBuild empowers lenders to close more deals, it also ensures the project moves forward even if the borrower doesn’t—giving lenders the leverage to act confidently when enforcing loan terms. To learn more about how SureBuild can protect your next project, contact Isaac Stern here. Side Image

Beware the Low Bid
When a contractor’s bid comes in suspiciously low, it’s often a red flag—not a bargain. Incomplete plans, vague scope definitions, or contractors aiming to win at any cost can lead to a flood of change orders, delays, and costly disputes. And when low bids aren’t backed by experience or proper vetting, small issues can quickly become expensive problems. In this article, Partner’s Christina Fanning breaks down what drives low bids and why they should prompt closer scrutiny. Side Image

2025 CLRM Journal

2025 Construction Risk Management Journal

From navigating shifting market conditions to managing risks in real time, this year’s CLRM Journal offers practical guidance for today’s construction lenders and risk professionals. Explore articles on SBA closing best practices, evolving construction challenges, and tools like C-PACE that can help keep projects on track. You’ll also find insights on legal documentation, low-bid contractor pitfalls, insurance trends, tenant improvements, and resilience planning. The content reflects the questions and complexities lenders are actively working through today. Click here to download the full journal.

Using Best Practices to Mitigate the
Domino Effect of Risk During Construction
Construction setbacks rarely happen in isolation—delays, budget gaps, or missed milestones can trigger a chain reaction that derails a project. From hidden contract risks to underestimated environmental issues, the smallest oversight can have outsized consequences. In this article, Partner’s Kyle Gustafson and Mark Petit of Meadows Bank share insights on preventing seemingly small issues from escalating into major setbacks in construction projects. Side Image

From Foundation to Flag: Managing
Risk in Luxury Hotel Construction
Luxury hotel projects carry high stakes—design changes mid-build, brand-driven revisions, and coordination among developers, lenders, and operators. Long lead times, shifting scopes, and evolving public space plans only add to the risk. Thoughtful planning and clear agreements upfront are key to staying on track. In this article, Robert W. Barone, RA, LEED AP, shares strategies for managing complexity and minimizing exposure in luxury hospitality construction. Side Image

Centralized Access to All Your Construction Reports
Managing multiple construction loans means juggling reports, updates, and timelines. SiteLynx, Partner’s secure client portal, brings everything together—centralizing project reports, simplying RFP requests, keeping your team aligned with shared report access and updates, and providing easy access to Partner invoices. If you’re already a Partner client, setup is quick and easy. Let us help you get set up today. Side Image
Work in Residential Construction Lending?
Stay in the know of residential construction risk management insights and resources by opting in here.

About the Authors

Partner ESI

Partner ESI

Founded in 2007, Partner Engineering and Science Inc., is the leading provider of engineering, environmental, energy, and construction consulting for the commercial real estate (CRE) industry. Touching 1 in 5 CRE transactions in the U.S., Partner is widely recognized as the largest and best provider of third-party physical due diligence reports, including Phase I Environmental Site Assessments, Property Condition Assessments, Seismic Risk Assessments, Zoning Reports, ALTA Land Title Surveys, and Construction Risk Management. Partner’s connectedness to the CRE market gives it an unparalleled view into CRE trends and risk management insights. Partner also provides a full suite of consulting services to support the entire real estate lifecycle, including: Geotechnical Consulting; Building Systems Consulting; Capital Management and Project Implementation Support; Environmental Health & Safety Consulting; Energy, Sustainability & Resilience Consulting; and Site Civil Engineering. With a responsive approach scaled for speed and agility, Partner helps clients manage risk, make smart investments, optimize asset performance, and win at their real estate investment strategies. Based in Torrance, Calif., Partner has over 1,400 employees in 40 offices around the globe.
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