Well, it seems that 2025 isn't quite finished dumping paper on the construction industry yet. As the year stumbles along towards the end, policymakers are finally realizing they may actually have to take action before the clock strikes December. Enter the flurry of policy "tweaks" everyone in construction pretends to comprehend while secretly Googling, "What even is Section 179 again?"
If you are in the construction trade, pick up a hard hat and perhaps a calculator, it's about to get "fun."
We'll begin with taxes, since nothing shouts "holiday joy" like IRS code changes. The One Big Beautiful Bill Act (OBBBA), believe it or not, that is indeed a real thing, took effect over the summer with a few bonuses hidden in the small print.
Good news: construction companies can now reap 100 percent bonus depreciation on eligible assets put into service after January 20, 2025. Basically, purchase that backhoe today and depreciate it quicker than saying "budget overrun." There's also an increase in the Section 179 deduction limit, now lounging at $2.5 million for specified equipment and building improvements.
So yes, accountants all over are partying, while project managers are just wondering if that means they can now spring for a new generator that won't wake up the neighborhood.
Let's go to tariffs, those delightful surprise charges that make budgets interesting. The silver lining? Prices didn't absolutely skyrocket like everyone expected. The bad news? They're unpredictable enough to sabotage your cost estimate and your weekend.
A Skanska Market Trends report shows that though metals and raw material prices flinched a little, we're not in disaster mode (at least, not yet). But if you're bidding on a job currently and hoping prices will remain flat, you may as well get a head start on your apology email to the client.
And, of course, supply chains continue to be "recovering." So, your shipment may arrive this quarter, or next fiscal year. Who knows?
In case tax regulations weren't sufficient, legal revisions are on hand to keep attorneys well-paid. The new "Building Liability Orders" idea is catching on, essentially making parent companies responsible for construction defects.
So if your subcontractor chose to make concrete curing times "just suggestions," good job! You could be the new owner of their errors. It's like teamwork, but with lawsuits.
Okay, here's the abridged version:
So yes, then, these changes might work, if you can resist drowning in red tape first.
If you're still with me, congratulations, you officially care about compliance more than 90 percent of your colleagues. Here's the thing: although all these changes may seem like chaos, there is a silver lining. You can actually make money out of them if you play smart.
Exploit the bonus depreciation while it's still available, monitor tariff changes like they're stock prices, and perhaps, just perhaps, keep your contracts attorney on speed dial before you ink anything new.
And if you're bidding for a large job currently, perhaps include a 5 percent "policy chaos buffer." It's not a legitimate term… yet, but it probably should be.
The construction sector is like that co-worker who says they’re “fine” while clearly holding a flaming spreadsheet. These year-end policy changes might not break you, but they’ll definitely test your patience.
So, before you hang up your hard hat during the holidays, double-check your tax strategy, supplier agreements, and liability insurance. Because if 2025 taught us one thing, it's that the only thing you can bank on is another surprise memo marked "urgent."
