The Construction Counselor

On May 30, 2025, construction attorneys, Jodie McDougal and Brandon Underwood, presented at the Iowa State Bar Association’s Annual Construction Law Seminar.

A recent ruling by the U.S. Court of International Trade has invalidated several tariffs imposed by the Trump administration earlier this year, including the “Liberation Day” tariffs and those targeting imports from Mexico, Canada and China.

On April 25, 2025, Governor Kim Reynolds signed into law Senate File 574, which amends Iowa Code Chapter 573 by, among other things, reducing the maximum retainage that may be held by public owners on Iowa public construction projects from 5% to 3%.

In construction projects, deadlines are key. Property owners want to know when their project will be completed, and contractors want to know how long they have to get their permits, order materials, deploy subcontractors, and do everything else that goes into satisfying an owner’s deadlines.

As with the prior tariffs, recent changes could lead to higher costs for building materials, supply chain disruptions and challenges in budgeting and project timelines for those in the construction and real estate development industries.

On April 2, 2025, President Donald Trump announced a broad set of new and increased tariffs on imported goods from around the world — including key materials commonly used in construction and real estate development. These changes could lead to higher costs for building materials, supply chain disruptions, and challenges in budgeting and project timelines.

A wave of executive actions from the new administration has swiftly reshaped U.S. environmental, energy, labor and trade policies—creating significant uncertainty for the construction and real estate industries.

Widespread uncertainty within the construction industry has arisen due to President Trump’s promises to impose tariffs, both before and after his inauguration. If implemented, new tariffs could mean price increases in construction materials, ranging from steel and iron to lumber, electronical components and many others.

On November 22, 2024, the Iowa Supreme Court entered an order on a matter arising from a general contractor’s motion demanding that a public owner release retainage on a construction project prior to final completion of the project, with the Supreme Court denying that contractor’s motion and allowing the public owner to continue withhold retainage.

On October 10, 2024, the Iowa Supreme Court heard oral argument in Charles L. Smith, Trustee in the Bankruptcy of Metro Concrete, Inc. v. Des Moines Area Community College and Rochon Corporation of Iowa, Inc. n/k/a Graphite Construction Group, Inc., a case involving retainage rights by owners on public projects.