Tariffs are changing after EPC contracts are already signed.

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Tariffs are changing after EPC contracts are already signed. And there is no easy way to absorb them.

When a project's costs are locked and a tariff then shifts, the budget was built on different numbers. In some cases the increase is large enough to put the project in question entirely.

Projects that do not proceed do not ship. The risk lands on the logistics supply chain too.

At Transcar, tariff exposure is part of the logistics risk conversation from the outset, so a policy change does not become a programme change.

Have a project with tariff exposure in the pipeline? Let us talk before the policy changes again.

Originally shared by Transcar Projects on Facebook.