Bradley N. Ouambo Examines the Iran Conflict’s Ripple Effects on Construction in Properties Magazine

Frantz Ward Partner Bradley N. Ouambo examined how the Iran conflict rattled the U.S. construction industry, raising energy, material, insurance, and financing costs and extending project timelines in Properties Magazine.

His “Legal Perspectives” article, “Iran Conflict’s Impact on the Construction Industry,” detailed how rising fuel prices drove up operating and delivery costs, squeezing margins on fixed-price contracts and pushing bids higher. Among the materials most affected were petrochemical-derived products, asphalt, steel, cement, specialty metals, and coatings.

Brad also discussed the potential impact of the U.S.-Iran memorandum of understanding (MOU), which was expected to end the blockade of the Strait of Hormuz, easing supply pressures and bringing cost relief. He clarified, however, that the MOU was not a peace treaty, and that construction firms should plan accordingly.

Planning Ahead in a Dynamic Landscape
In his article, Brad laid out steps for managing risk and capturing opportunities during the recovery by:

• Reassessing exposure by mapping supplier origins for petrochemicals, steel, glass, and long-lead modules
• Diversifying suppliers with qualified domestic or alternate international sources
• Holding strategic inventory buffers for long-lead or critical petrochemical-derived items and specialty metals
• Building escalation clauses for fuel, steel, and petrochemical inputs into contract terms, along with protections related to war or tariffs

Read the full article here.

Brad focuses his practice on construction law and related litigation, offering tailored guidance and strategic representation to his clients. He has experience in contract review and handling complex disputes across industries, including construction, transportation, and real estate. Brad is well-versed in managing all stages of litigation, from complaints through depositions, settlements, and trials, providing comprehensive support to his clients.

Since 1946, Properties Magazine has served as a monthly source of news on development, construction, design, and property management across Northeast Ohio.