KEY POINTS
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Tariffs on steel, lumber, and imports have pushed construction costs beyond budget, pausing plans for the $75 million project.
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County officials plan to restructure contracts to protect taxpayers from cost overruns.
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A tariff ruling later this year could determine when plans for construction resume.
Project Plans on Hold Over Rising Material Costs
Gwinnett County has paused plans to build a new $75 million police headquarters after tariffs on steel, lumber, and other imports sent construction costs soaring.
The county, northeast of Atlanta and one of Georgia’s largest counties, has temporarily put plans for the project on hold due to concerns over tariff-driven construction costs, WSBTV reported yesterday. Officials say the temporary hold aims to avoid overspending while shielding taxpayers from legal and financial risks tied to volatile markets.
The new headquarters is intended to replace the county’s existing police facility, built in 1977 when Gwinnett’s population was less than half its current size. County support services director Ron Adderley said to WSBTV that tariff-driven price hikes and gaps in current contracts raised concerns about exposure to cost overruns.
The Gwinnett County Police Headquarters building pictured here was built in 1977, at a time when the Georgia county’s population was a fraction of its current size. Image: Gwinnett Daily Post
Contract Restructuring and Fiscal Caution
Before moving forward, county leaders plan to revise contract terms to better insulate public funds from future tariff or inflation shocks. Options on the table include trimming the project’s budget, issuing bonds, or rebidding the work once pricing stabilizes.
Officials stressed that competitive bidding will resume once greater clarity emerges on trade policy and market conditions. “We’re going to deliver the project that’s promised,” Adderley said, underscoring a commitment to both public safety and fiscal stewardship.
Tariffs Remain Uncertain
The Gwinnett County pause comes as a federal appeals court recently ruled that most of President Trump’s tariffs were unlawfully imposed, casting doubt on their long-term viability. However, the ruling does not automatically lift the duties.
Current tariffs remain in place until at least October, when the court’s decision is scheduled to take effect. Some legal experts expect the case to advance to the Supreme Court, where a final judgment could reshape US trade policy and directly influence construction material costs heading into 2026.
Gwinnett County hopes to restart its plan for a new headquarters before the end of the year, depending on how the legal and market landscape evolves.
National Construction Trends
Construction Starts for Police Stations and Fire Halls were up 20.6% for the year-to-date period through July versus a year ago, according to Michael Guckes, ConstructConnect Chief Economist. However, the Institutional building category to which the building type belongs is down 5.3% year-to-date compared to a year ago.
Industry Impact
For contractors, estimators, and building product suppliers, the Gwinnett project highlights the ripple effect of federal trade policy on local construction timelines, bids, and material sourcing. Firms eyeing future county projects should monitor announcements for possible revised contract terms and procurement schedules that could impact estimating, bidding, and related business decisions.
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