Free tool · Bidding & Risk · CSI Division 01
Tariff & Material Escalation Calculator
Turn the tariff news into a number. Enter the steel, aluminum, copper and lumber in your bid to see how much tariffs and rising prices could cost you before you buy, then carry it as contingency or cover it with an escalation clause.
Calculator inputs
Materials in your bid
Enter the dollar value of each material in the bid and the share that is imported. Tariff rates are prefilled with the rates in force on October 19, 2026; price change is the last 12 months of the BLS producer price index (September 2026).
Steel
Aluminum
Copper
Lumber
Other material
Timing & contract
Results
Total exposure
$76,200
16.2% of $470,000 in materials. Consider carrying it as contingency or covering it with an escalation clause.
| Item | Amount |
|---|---|
| Steel$250,000 in bid: $25,000 tariff + $23,000 escalation (19.2%) | $48,000 |
| Aluminum$40,000 in bid: $6,000 tariff + $3,360 escalation (23.4%) | $9,360 |
| Copper$60,000 in bid: $6,000 tariff + $6,000 escalation (20.0%) | $12,000 |
| Lumber$120,000 in bid: $3,000 tariff + $3,840 escalation (5.7%) | $6,840 |
| Tariff exposure | $40,000 |
| Escalation exposureover 4 months to buyout | $36,200 |
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We take off the steel, copper, aluminum and lumber from your drawings so your exposure is built on real tonnage and footage. Fixed-fee quote within hours.
Upload Plans for a Free QuoteSample price escalation clause
The contract price is based on steel, aluminum, copper and lumber prices quoted on [bid date]. If the cost of any of these materials, including new or increased tariffs and duties, rises by more than 5% between the bid date and the date of purchase, the contract price will be adjusted by the documented increase above that threshold, supported by supplier invoices or quotes. Decreases of more than 5% will be credited on the same basis.
Built from your materials and threshold above. This is sample wording to start a conversation, not legal advice: have your attorney review any clause before you put it in a proposal or contract.
Can you get a tariff refund?
After the Supreme Court struck down the IEEPA tariffs on February 20, 2026, CBP began refunding them in phases. Answer two questions to see where you stand.
How to use it
- 1
Enter the dollar value of steel, aluminum, copper and lumber in your bid. Turn off any material you don't carry, or add another one.
- 2
Set the share of each material that is imported. Domestic material is not subject to the import tariff, though its price often rises with it.
- 3
Check the prefilled tariff rates and the 12 month price change, and replace them with your own supplier figures if you have them.
- 4
Enter the months between bid day and buyout, and tick the box if your supplier quotes already include current tariffs.
- 5
Read the total exposure and decide how much to carry as contingency, then copy the sample escalation clause for your attorney to review.
- 6
Answer the two refund questions to see whether you could claim back IEEPA tariffs you paid.
How the numbers are calculated
- Tariff exposure
- For each material, value in bid x share imported x tariff rate. If your supplier quotes already include current tariffs, tariff exposure is zero and only escalation is counted.
- Escalation exposure
- Value in bid x annual price change x months to buyout / 12. A straight line projection of the last 12 months, which is a reasonable planning figure but not a forecast.
- Tariff rates
- Prefilled with the Section 232 rates in force on the review date: 50 percent on steel, aluminum and copper articles, and 10 percent on softwood lumber. Some derivative products carry different rates, so check the rate on your supplier's invoice.
- Price change
- The 12 month change in the Bureau of Labor Statistics producer price indexes for steel mill products (WPU1017), aluminum mill shapes (WPU102501), copper and brass mill shapes (WPU102502) and softwood lumber (WPUSI004011), refreshed daily from the BLS.
- Refunds
- On February 20, 2026 the Supreme Court held that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. CBP is refunding them in phases through its CAPE process, filed by the importer of record or its customs broker. Section 232 and Section 301 tariffs were not affected.
Common questions
How do I account for tariffs in a construction bid?
Price the tariff into the material where you know it, and carry a separate, clearly labeled contingency or an escalation clause for what you can't know yet. Owners accept a documented exposure figure far more readily than a padded unit price.
What is a price escalation clause?
A contract term that adjusts the price if specified material costs rise (or fall) by more than an agreed threshold between bid and purchase, backed by supplier invoices. It shifts the risk of large swings off a fixed price. Have an attorney review any clause before you use it.
Which tariffs still apply to construction materials?
As of the review date, Section 232 tariffs remain in force: 50 percent on most steel, aluminum and copper articles and 10 percent on softwood lumber, with some derivative products at other rates. The IEEPA tariffs were struck down in February 2026.
Can a contractor get a refund of IEEPA tariffs?
Only the importer of record, or its customs broker, can file for the refund through CBP. If your supplier imported the material and charged you a tariff surcharge, the refund goes to them, and whether you see any of it depends on your purchase terms.
Should I use contingency or an escalation clause?
Contingency keeps the price fixed but makes your bid higher. An escalation clause keeps the bid lower and moves the risk to the owner, but not every owner or public agency will accept one. Many contractors carry a smaller contingency plus a clause with a threshold.
Is the escalation figure a forecast?
No. It projects the last 12 months of producer price change in a straight line over your months to buyout. Prices can move faster or reverse, so update the figure close to bid day.
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