Are “Financial Hardship” Damages Recoverable?
June 08, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president and his wife. Are these damages recoverable? Drumroll…The Board ruled that the contractor cannot recover such financial hardship damages.
As it relates the personal financial hardship damages, the Board ruled, “Neither [the contractor’s] president nor his wife are a party to this contract, are in privity of contract with [the government], or are the beneficiaries under this contract. [The contractor], therefore, cannot recover for any losses that either one has suffered individually and that [the contractor] claimed in this appeal.” F.O.G., LLC, supra.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Urban Digital Twins: How Virtual Cities Could Help Build Smarter Cities
August 11, 2026 —
Gravel2Gavel Construction & Real Estate Law BlogTraffic congestion, endless construction, flooded streets and power outages. For city leaders and residents alike, these disruptions are simply part of daily urban life. But an emerging tool, known as the urban digital twin, could help cities anticipate problems before they occur by allowing planners to simulate responses, stress-test infrastructure, and evaluate decisions before implementing them in the real world.
What Is an Urban Digital Twin?
An
urban digital twin is a dynamic, data-driven virtual model of a real city. It uses AI analytics and combines 3D modeling with real-time data and information from sources such as IoT sensors, traffic cameras, satellite feeds, infrastructure databases, utility networks, and environmental data including weather systems and heat maps to create a continuously updated digital representation of the urban environment that mirrors infrastructure, movement and systems in real time. In other words, it is a living digital replica of a city.
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Pillsbury
DOI Finalizes Long-Awaited Modernization of Type A Natural Resource Damage Assessment Regulations
August 03, 2026 —
Amanda G. Halter, Ashleigh K. Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law BlogFor nearly three decades, the U.S. Department of the Interior’s (DOI) simplified “Type A” Natural Resource Damage Assessment (NRDA) regulations were available more in theory than in practice, constrained by dated models, narrow geographic applicability and a $100,000 cap that rarely matched the economics of modern environmental claims. DOI has now finalized revisions to the Type A natural resource damages assessment procedures under 43 C.F.R. Part 11 for hazardous substance releases under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Clean Water Act (CWA), with the final rule published in the
Federal Register on July 13, 2026 and scheduled to become effective August 12, 2026.
As discussed
previously, DOI has sought to modernize what it views as an “inefficient and inflexible” process and restore the Type A procedure to its intended role as a more streamlined pathway for smaller, less contentious NRD claims. The final rule adopts a $5 million default damages threshold, allows use above that amount if all parties agree, clarifies that Type A may be used in all environments and for all natural resource types, and removes legacy model appendices that had tethered the process to outdated formulas.
Reprinted courtesy of
Amanda G. Halter, Pillsbury,
Ashleigh K. Myers, Pillsbury and
Jillian Marullo, Pillsbury
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
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Utah’s Emerging Framework for Responsible Data Center Development
September 08, 2026 —
Denise A. Dragoo & Josh Miller - Snell & WilmerUtah is establishing itself as one of the nation’s most attractive jurisdictions for large-scale data center development, with a structured, defensible regulatory pathway that gives developers and investors the clarity needed to deploy capital at scale. The cornerstone is Executive Order 2026-03, “Establishing a Higher Bar for Data Center Development in Utah,” signed by Governor Spencer J. Cox on May 29, 2026.
The Executive Order creates an actionable compliance framework letting developers demonstrate stewardship across water, air quality, energy, wildlife, and community engagement – reducing regulatory and reputational risk. Recent enactments on energy self-supply and water rights operationalize these principles, while a few counties have adopted short-term local moratoria to update zoning; understanding how these interact with the state framework matters for site selection.
Reprinted courtesy of
Denise A. Dragoo, Snell & Wilmer and
Josh Miller, Snell & Wilmer
Ms. Dragoo may be contacted at ddragoo@swlaw.com
Mr. Miller may be contacted at jmiller@swlaw.com
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One Building, Six Owners, One Defective Stucco System: How Do You Coordinate Repairs?
November 02, 2026 —
David McLain - Colorado Construction Litigation BlogThe Problem: Six Homes, One Building Envelope
Consider a hypothetical six-unit townhome building in Colorado. Each residence is individually owned. There is no homeowners association responsible for maintaining the building’s exterior, no commonly owned building envelope, and no association empowered to pursue construction defect claims on behalf of all six homeowners. Instead, the development relies on individual ownership, recorded easements, and party wall agreements to govern relationships among neighboring owners.
Although the residences are separately owned, they share a continuous exterior stucco system, including interconnected flashing, waterproofing, and architectural transitions.
One homeowner discovers water intrusion and retains an expert who identifies defects in the stucco installation. The expert recommends removing and replacing the stucco on the homeowner’s residence. However, because the exterior cladding and waterproofing systems are interconnected, the proposed repair may require work extending beyond the boundaries of that homeowner’s property.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
A Customized Approach to Data Center Construction
June 29, 2026 —
James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law BlogData center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions.
Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements.
Reprinted courtesy of
James P. Bobotek, Pillsbury,
Arielle L. Murphy, Pillsbury and
Robert A. James, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com
Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
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Idaho Supreme Court Delivers First Authoritative Construction on the Community Infrastructure District Act
November 09, 2026 —
Sara M. Ajeti & Tara Martens Miller - Snell & WilmerOn February 12, 2026, the Idaho Supreme Court issued its first authoritative decision construing the Community Infrastructure District Act (CID Act), Idaho Code §§ 50-3101 to 50-3121, in Doyle v. Harris Ranch Community Infrastructure District No. 1. The opinion resolves several issues of first impression — what qualifies as reimbursable “community infrastructure,” how strictly the 60-day statute of limitations bars challenges to a CID’s formation and bond authority, and whether a CID is legally distinct from its creating municipality. For developers forming or using a CID, the decision provides welcome certainty on the durability of CID bonds, reimbursement structures, and the scope of qualifying community infrastructure.
Background
The CID Act allows a developer to petition Idaho cities and counties to form special-purpose taxing districts that finance community infrastructure ahead of development and allow growth to “pay for itself.” I.C. § 50-3101(1)(a)–(c). “Community infrastructure” is broadly defined to include roads, sidewalks, parks, sewers, stormwater facilities, and other public facilities that have a “substantial nexus” to, and directly or indirectly benefit, the district. I.C. § 50-3102(2). A CID is formed upon petition by two-thirds of residents or all landowners within a proposed district to the governing city or county. Once formed, CIDs are political subdivisions with only the power the Act expressly grants, including the powers to contract, finance infrastructure, levy property taxes, and incur debt through general obligation bonds. I.C. § 50-3105(1). Qualified electors within the district must approve a ceiling bond amount by a two-thirds vote; once approved, the district board may issue additional bond series without a further elector vote, notice, or hearing. I.C. § 50-3108(1)–(3).
Reprinted courtesy of
Sara M. Ajeti, Snell & Wilmer and
Tara Martens Miller, Snell & Wilmer
Ms. Ajeti may be contacted at sajeti@swlaw.com
Ms. Miller may be contacted at tmmiller@swlaw.com
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Two Important Points Regarding the Miller Act
September 15, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent Miller Act case, U.S. f/u/b/o Boundless Management Outsourcing Group, LLC v. Endurance Assurance Corp, 2026 WL 2241491 (D. Puerto Rico 2026), confirms two important points when it comes to the Miller Act. In this case, a subcontractor pursued a Miller Act payment bond lawsuit more than one year after its work was finished. The subcontractor also asserted a claim against the federal government. The lawsuit was dismissed. Below are two takeaway points to consider if you are dealing with a Miller Act payment bond lawsuit.
First, as it relates the claim against the federal government, the federal district court followed authority that held that the Miller Act does NOT include a waiver of sovereign immunity against the federal government. “[T]he Court does not identify any clear language in the Miller Act expressly waiving the United States or its agencies’ sovereign immunity.” Endurance Assurance Corp., supra at *3.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
