What is the possible impact of the steel tariffs on the estimates for this project and did we account for them in the estimates?
Our current estimate includes a premium cost intended to account for the price increase associated with steel and aluminum tariffs. Given the duration between now and the time of procurement for relevant trades (June 2019 for structural steel [early package #2]; Oct 2019 for primary bidding), it is difficult to predict exactly the price impact of these tariffs at this time. However, in addition to the premium mentioned above, we also have a decent amount of overall contingency (design, pricing, and escalation) built into the estimate. We will adjust the pricing in the future budget estimates according to the market conditions and projections at the time of each estimate. We will continue to monitor this as the project progresses. Overall, the committee feels that we have a conservative approach to covering these types of issues.
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