Let me set the scene. You’re here because you’ve signed a fixed price contract on a building job. Materials are ordered. Labour’s lined up. Your profit margin is as tight as ever. Then out of nowhere, international tariffs go up. Suddenly your steel is 15% more expensive. Copper has gone through the roof. Materials from Europe now cost more, take longer to arrive, and no one seems to know what’s going on.

But your client? They still want the same job for the same money. Make it make sense.

I’ve got decades of experience working with construction business owners and know the ins and outs of the trade, so I’m going to explain what to do in this situation.

Tariffs give you practical headaches

Tariffs are essentially import taxes on goods crossing borders. Whether it’s the UK reacting to global trade tensions or other countries adjusting their policies, the knock-on effect is price uncertainty. For the construction industry, which depends heavily on imported materials and equipment, you’ve got yourself a big problem.

If it’s coming from overseas, it’s probably going to cost more.

As of 2025, UK-EU trade relations are still looking a bit worse for wear. We’ve seen fresh tariffs and paperwork delays on everything from European timber and aluminium to specialist energy-efficient materials. It’s not just cost anymore, it’s time, reliability and regulation ballaches all wrapped up in one.

One of my clients, a construction business owner based in the North West, found themselves in exactly this spot. They were midway through a commercial build when the cost of key materials suddenly spiked. Most of it was imported, and the changes came out of nowhere. The problem here was the contract was fixed from day one. No adjustment clause. No way to recover the extra spend. They had to absorb the cost. And the worrying thing is, that’s not unusual.

The fixed price trap

Let’s be brutally honest. If you’re working under a fixed price contract and tariffs cause costs to rise, that extra spend lands on your plate. Unless you’ve got something in the contract that says otherwise, you’re picking up the bill whether you like it or not.

You price a job based on today’s market. But when tomorrow’s market changes and the contract’s locked in, your hands are tied. The client’s happy and your team’s working hard. But your margin is being squeezed to bits.

So where do contracts actually stand?

Now, not all hope is lost. But you’ve got to know where to look in the contract. Let’s have a look at the usual suspects:

Price adjustment clauses

These are more common in big infrastructure projects but not so much in smaller commercial or residential builds. A price adjustment clause lets you increase your price if material costs rise due to certain factors; like tariffs. If your contract’s got one, you’re in better shape. If it doesn’t, and the price of your materials goes up, you’ll likely have to absorb it.

I had one client who insisted on a price adjustment clause in their Joint Contracts Tribunal (JCT) contract after getting burnt the year before. Good thing they did. When lead times doubled and steel prices went through the roof mid-way through the job, they were covered. It wasn’t easy negotiating that clause up front, but it saved them from working at a loss.

Change in law clauses

These can be useful, if they include tariffs. But that depends on how the clause is written. Some contracts only account for changes in UK law. If tariffs are imposed by another country or part of an international trade shift, you may be out of luck unless the clause is broad enough to catch that. You also need to look at whether the clause only covers unforeseeable changes. If tariffs were being debated or reported in the news, there’s a chance the client’s solicitor argues you should’ve seen it coming. This is where wording matters. A lot.

Force majeure

People often ask, “Can I claim force majeure?” Short answer, probably not. English law doesn’t treat higher costs or delays as force majeure events unless they’re truly outside your control and make the job impossible. Most force majeure clauses won’t cover tariffs. If you can still get materials, even at a higher price, you’re expected to crack on. Harsh, but true.

Frustration

Another long shot. Frustration in legal terms means the contract becomes impossible to perform. Not just more expensive. Unless the tariffs are so extreme they completely change the nature of the job or make it illegal, the courts won’t have it. At the end of the day, if the work can be done, even at a loss, complaints won’t be entertained. So save your breath.

What you can do about it

Right. Enough doom and gloom. Let’s talk about what you can actually do, whether you’re mid contract or preparing to sign one.

If you’re already tied in

• Check your contract. Read it. Then read it again. Look for any wording around price adjustments, changes in law or supply chain disruptions.

• Speak up early. If costs are going up, flag it with your client straight away. The earlier the conversation starts, the more chance you have of finding a workable solution.

• Try to renegotiate. Plenty of clients will understand the situation. Especially if walking away or delaying the job is worse for them than paying a bit more.

• Keep records. Save every supplier email, updated quote and price increase notice. If it comes to a dispute, paper trails win.

Bonus tip: Keep an eye on government guidance. From time to time, the UK Government offers temporary support or guidance for importers, especially when new trade rules kick in. It’s worth checking the official gov.uk trade and construction pages to see if any schemes apply to you. These won’t always offset the cost, but may help with customs paperwork or delayed timelines.

If you’re pricing up a new job

• Get a price adjustment clause in. Especially if you’re relying on imported goods or specialist components.

• Nail down your change in law clause. Make sure it covers international trade shifts, not just local legislation.

• Clarify what unforeseeable means. If in doubt, agree specific thresholds. Say, if material costs rise more than 10%, you get to reopen the numbers.

• Use your leverage. If you’re in demand, you’ve got more chance of setting fair terms. Don’t undersell yourself.

The fact of the matter is…

Construction contracts haven’t kept up with global volatility. Tariffs, trade shifts and political rows now affect material costs on a regular basis. But too many builders and contractors are stuck with outdated contract templates that don’t account for it.

The fact of the matter is, you can’t control what happens in Brussels, Washington or Beijing. But you can control what’s in your contract. And in a world where prices can shoot up overnight, not protecting yourself is a risk you just don’t need.

So next time you price up a job, don’t just check the drawings and schedule. Read the clauses. Ask the awkward questions. Protect your margin. Because if tariffs hit and your contract’s silent, the silence can be very expensive.

Simple as that.

If you can relate, or you want to be sure about what’s written in the small print, let’s have a chat. I can help you review your contracts before you sign, flag where you might be carrying too much risk, and make sure you’ve got proper wording around things like tariffs, supply chain delays, and price increases. Whether it’s reviewing a fixed price contract, tightening up a change in law clause, or making sure your force majeure wording actually covers something useful. I’ll make sure you’re not left carrying the load.

Bonus points if you like dogs, the senior partner, Toto, might just join us for the meeting.

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb

If you’ve had a letter about Making Tax Digital (MTD) and thought, “what now?”, you’re not alone. A few clients have already phoned me, scratching their heads and wondering if they need to worry about it. So if you’re a construction business owner or property developer, here’s what you need to know. Plain and simple in Graeme speak.

What is Making Tax Digital?

MTD is the government’s way of dragging tax into the 21st century. No more scrunched up receipts in the glovebox of your van or spreadsheets that, let’s be honest, needed a bit of TLC (at best). HMRC wants everyone to keep digital records and submit tax info online using approved software.

At first glance, it sounds like a half-decent idea. Reduce mistakes, speed things up, less chance of getting stung with penalties. But as always, where HMRC are concerned, there’s a bit more to it than meets the eye.

Let’s take Brickies. They aren’t known for being good at the technical stuff. They don’t need to be. They’re good at manual labour and building walls that withstand all weather. So all this MTD talk probably makes them want to run a mile. It it wouldn’t be just the Brickies thinking this, But, honestly it’s straightforward once you’re set up. I’ve even managed to get a few of my clients to admit how easy it is compared to what they’ve been reading or hearing about.

Who does it affect (for now)?

As of April 2026, MTD for Income Tax Self Assessment kicks in for:

• Sole traders with income over £50,000
• Landlords with rental income over £50,000
• Or a combination of both totalling over £50,000

So if you’re a property developer running your own business and also renting out a flat or two, you need to look at your total income. Hit that £50k mark and you’re in.

From April 2027, the threshold drops to £30,000, so more of the smaller property developers and construction subcontractors will be included. And by 2028, it’s expected to fall to £20,000, which will rope in most CIS subcontractors.

What do you actually need to do?

If MTD applies to you, you’ll need to:

1. Keep digital records of all your income and expenses. That means no more handwritten invoices or notes on the back of your hand.
2. Submit quarterly updates to HMRC using MTD-approved software.
3. Send a final statement at year end to square everything off.

Quarterly updates sound like a pain in the a*se, and yes, it’s more admin. But done right, it can actually give you a better grip on your finances throughout the year. And that helps with planning, tax-saving, and not getting a nasty surprise from the taxman in January.

What’s the best software for MTD?

You can’t just email HMRC a spreadsheet anymore. You’ll need proper software that links directly with their systems.

If you’re with NatWest, you’re in for a winner. Their “Mettle” business account comes with FreeAgent at no extra cost. It’s MTD-compliant and perfect for keeping everything tidy.

Personally, I’m a fan of QuickBooks. It does what it says on the tin, it’s user-friendly, and brilliant for construction businesses. Handles CIS deductions, invoices, expenses. The lot. And it links up nicely with your bank accounts so everything stays clean and straight.

Whichever you choose, we can help get you set up and trained up. Which, if you’re not the most technical of people, will save you stuck shouting (and swearing) at the screen. You can thank us later.

Do you need a separate bank account?

Short answer: yes. If you’re affected by MTD, it’s time to separate your finances properly. Business money in one place, personal spending in another. It keeps your records cleaner, your bookkeeping simpler, and keeps HMRC from breathing down your neck.

We can help you open a dedicated business account if you don’t already have one. And once that’s up and running, everything else falls into place a lot easier.

Why it matters now

Even though MTD for income tax isn’t starting until 2026, letters are going out now. HMRC is giving people time to prepare, and trust me, you’ll want that head start. The sooner you sort out your systems, the easier the transition will be.

Don’t wait until you’re already over the threshold and panicking. Let’s get your software, banking and bookkeeping lined up ahead of time.

What about VAT?

If you’re VAT registered, you should already be doing MTD for VAT. That rule came in back in April 2022 for all VAT-registered businesses, no matter your turnover. If you’re not doing your VAT returns through MTD-compatible software, you’re already miles behind.

Make MTD work for you

MTD isn’t optional once you’re in the threshold. HMRC won’t accept excuses or last-minute rushing about. But if you sort it properly, it doesn’t have to be complicated.

Let’s make it work for you: cleaner records, better cashflow visibility, less of a ball ache at the end of the tax year.

So if you think you’ll be edging towards that income threshold in the next year or two – get in touch. We’ll make sure your books are ready, your software is sorted, and you stay well on the right side of the new rules.

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb

If you run a business, whether its running sites in construction or keeping things ticking over in hospitality, there’s plenty to learn from how Pep Guardiola is handling Man City right now. As a City supporter, I back them all the way. But let’s be honest, the team’s lost a bit of spark this season. It’s not about bad tactics or lack of effort. It’s about a thin squad, a few too many injuries, and trusted players starting to show their age. And in business, you get the same thing. Long-standing staff, once vital to the operation, start to slow down or get too comfortable. The team that got you here might not be the one to take you further. So how do you know who to back, who to support, and where you need to make some changes?

Bigger isn’t always better – it’s about who you can rely on

In business, it’s tempting to think that growing the team means adding more people. But if those people aren’t reliable, you’re just creating more problems and more ballaches. Whether it’s the lads on-site, a kitchen team, or your back office, you want people who show up, deliver, and don’t need chasing.

Even Guardiola admits he prefers a smaller squad. Fewer people, more trust. He’s not chasing numbers. He’s looking for players who are dependable. Same goes for you. It’s not about how many you’ve got. It’s about who you can count on when it matters.

You can’t predict everything, but you can be ready for it

You know how it goes. The site manager is off with a back injury, your second-in-command is at a funeral, and your best labourer has just handed in his notice. The work still needs to get done. Clients don’t care about your staffing problems.

That’s the sort of thing that’s hit City this season. Rodri out. Centre-backs are dropping like flies. It’s derailed them. Not because they’re a bad team, but because they didn’t have enough cover when it mattered.

In business, you’ve got to be ready for the gaps. That means developing people, cross-skilling where you can, and not leaving the whole load on one or two people.

Some people outgrow the role – others get left behind by it

As your business grows, the pace picks up. Expectations shift. What used to be a one-man job now needs a team. What was good enough two years ago doesn’t cut it now.

It’s not personal. It’s progress.

At City, there are players who’ve been top class for years. But they’re not what they used to be anymore. Not saying they’re not great players (despite what I often shout from my sofa on a Sunday afternoon), but for some reason they’re underperforming and more often than not, that is down to the management and team dynamic. Guardiola knows it – now he has to decide who still fits. 

Same for you. Be honest. Who’s keeping up? Who’s falling behind? Who could thrive again with the right support or a new role? Making time to find out could avoid the risk of dragging everyone down with outdated decisions.

The team members who hold everything together, keep projects moving, and step up without being asked are the gems of the business. If you’ve got someone like that, make sure they know they’re appreciated. Pay them what they’re worth. Don’t wait until they’re halfway out the door. Your team will be more likely to perform above standards if their hard work is acknowledged and they feel appreciated.

Loyalty’s great – until it starts costing you

We’ve all got that one person. Been with you since day one. Knows the business inside out. Was brilliant once. But now they’re just there, not making a whole lot of effort, slipping a bit. And even resisting change.

It’s hard to know what to do. You don’t want to be unfair. But you also can’t ignore it forever or make excuses because they’ve been around for as long as they have. That’s not fair to other members of the team either.

Even Guardiola’s got this issue. His midfield’s ageing, some players haven’t found form. He still believes in them – but belief doesn’t keep you top of the table. We’re a prime example of that. At some point, you’ve got to decide whether someone’s part of the future or just holding onto the past.

Your team reflects your leadership

If you’re always firefighting, jumping in to fix problems, or carrying people who can’t keep up, it wears you down. You get snappy. Drained. Short on ideas.

And the team sees it. They stop pushing. They start waiting.

That’s how businesses stall. And it’s not just you. Even top managers feel it. Guardiola’s said he’s struggling to keep the rhythm when the team isn’t firing. The mood of the boss sets the tone. If your energy’s off, it’s often because your team setup isn’t right.

Fix that, and the rest falls into place.

Make the call – before someone else does

If your best staff aren’t being recognised, they’ll go somewhere else. If your underperformers aren’t challenged, your top people will get fed up. You don’t have to cut all ties and start over. You just have to manage it properly.

At City, Pep’s now facing big calls. Do you refresh the squad? Do you keep trusting the old guard? Do you invest in new blood or back the players you’ve got?

You’ve got the same choices in business. Look at performance. Look at potential. And don’t wait until the results dip before you act.

Build a solid game plan

It’s not about loyalty vs leadership, or you vs the team. It’s about building the right team for the business you’ve got now. And the one you want in the future. If you don’t make the changes, the results will stay the same. There’s no growth in that.

Know your people. Pay your best ones what they’re worth. Support the ones who can grow. And be brave enough to let go of the ones who can’t. That’s what managing is.

I’m not Pep, and this isn’t the Etihad, but your business still needs a solid game plan. If you’re making big decisions without knowing your margins, cashflow, or who’s costing you more than they bring in, you’re guessing. And guessing costs money. Let’s take a proper look, get the facts, and sort it.

 

Interested to find out more?

Call us on 01617 985789

Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb