2026 Construction Outlook: Dampening Outlook With Some Potential Bright Spots
February 17, 2026 —
Garret Murai - California Construction Law BlogAccording to Dodge Construction Network’s Outlook 2026 Ebook, “the construction industry came roaring into 2025” – with large government investments through the Infrastructure Bill and the CHIPS Act (promoting investment in the domestic semiconductor industry), as well as outsized spending on data centers to support cloud and AI technology – but “throttled back significantly” due to “rapid changes to economic and fiscal policies.”
These changes include short-term cost impacts due to tariffs and labor impacts due to the federal government’s immigration crackdown and long-term concerns following enactment of the One Big Beautiful Bill (OBBBA) which is anticipated to add $3.4 trillion to the federal deficit over ten years.
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Garret Murai, NomosMr. Murai may be contacted at
gmurai@nomosllp.com
New Executive Order Prohibits Federal Contractors from Engaging in DEI Through Employment and Procurement Activities
April 27, 2026 —
Laura De Santos & Monica Prieto - Gordon Rees Scully MansukhaniOn March 26, 2026, President Trump signed Executive Order 14398, entitled Addressing DEI Discrimination by Federal Contractors, requiring federal agencies to add contractual language in all federal contracts prohibiting contractors and subcontractors from engaging in any racially discriminatory DEI activities, as defined by the Executive Order (EO).
While this EO includes language similar to prior DEI-related orders, it introduces a significant expansion in enforcement by subjecting non-compliant contractors to liability under the False Claims Act (FCA), including exposure to whistleblower actions and qui tam litigation. A qui tam claim is a civil action by a private individual on behalf of the government alleging fraud against federal programs and seeking to recover damages.
The new EO states that involvement in any racially discriminatory DEI activities is not only unethical and illegal, but also deemed fraudulent against federal programs because it is material to the government’s payment decisions. The definition of DEI activities here matters, as this EO expands a contractor’s obligations beyond the management of its employment policies and includes prohibitions against funding or expending time or resources on DEI activities and contracting with subcontractors, vendors, or suppliers utilizing DEI programs.
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Laura De Santos, Gordon Rees Scully MansukhaniMs. De Santos may be contacted at
ldesantos@grsm.com
That’s a Wrap! Pennsylvania Court Holds Arbitration Clause in Online Agreement Unenforceable
May 14, 2026 —
Gus Sara - The Subrogation StrategistIn Duffy v. Tatum, 2026 Pa. Super. LEXIS 112, 2026 PA Super 41, the Superior Court of Pennsylvania (Superior Court) considered whether an arbitration provision contained in the online Terms of Service on the defendant’s website were enforceable. The plaintiff, Daniel Duffy (Duffy), visited the website of defendant, Dolly, Inc. (Dolly), to purchase moving services. Duffy selected the number of movers, items to be moved and the type of vehicle needed. To complete the booking, the website required Duffy to checkmark a box labeled “By checking this box I accept the Dolly Terms of Service.” Duffy did not have to open the link or scroll to the bottom of the agreement before being able to click on the checkmark box. The Terms of Service included an arbitration provision requiring that any dispute related to the moving services to be resolved by arbitration in accordance with the American Arbitration Association. The Terms of Service did not include any statement that the user was waiving the right to a jury trial. The Superior Court found the internet Terms of Service unenforceable.
During the moving process, an accident occurred and injured Duffy. In May 2024, Duffy and his wife sued Dolly and other related entities alleging negligence and loss of consortium. Dolly filed preliminary objections alleging that the parties agreed to alternative dispute resolution. The lower court overruled the preliminary objections, finding that Dolly’s website did not provide reasonably obvious notice of its Terms of Service to Duffy and, as such, Duffy never agreed to waive his constructional right to a jury trial. Dolly filed an appeal to the Superior Court.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
Scope of Products Requiring Proposition 65 Warnings in California Poised to Grow
February 23, 2026 —
Brian M. Ledger & Chassen B. Palmer - Gordon Rees Scully MansukhaniThe scope of products to be drawn into the warning requirements under California’s Proposition 65 law may soon be growing. California’s Office of Environmental Health Hazard Assessment (OEHHA) requested information from the public on the reproductive toxicity of p,p’-bisphenol chemicals. OEHHA is the lead agency for the implementation of Proposition 65, formerly known as the Safe Drinking Water and Toxicity Enforcement Act of 1986. OEHHA’s request for information is a step toward regulators classifying all p,p’-bisphenol chemicals as reproductive toxicants under Proposition 65.
California’s Proposition 65
Under Proposition 65, businesses are required to post clear and reasonable warnings before individuals are exposed to chemicals listed by the state of California as carcinogens or reproductive toxicants. To date, California has listed approximately 900 chemicals that fall under Proposition 65 regulation. Businesses may be held liable for up to $2,500 per violation per day. Proposition 65 can be enforced by public prosecutors (e.g., the California attorney general or district attorneys) or by private enforcers (known as “bounty hunters”).
Reprinted courtesy of
Brian M. Ledger, Gordon Rees Scully Mansukhani and
Chassen B. Palmer, Gordon Rees Scully Mansukhani
Mr. Ledger may be contacted at bledger@grsm.com
Mr. Palmer may be contacted at cbpalmer@grsm.com
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The Modern Nuclear Renaissance Reaches New England
April 14, 2026 —
Stephen J. Humes - Gravel2Gavel Construction & Real Estate Law BlogOn March 31, 2026, the governors of all six New England states issued a joint, bipartisan statement committing the region to explore deployment of advanced nuclear energy technologies while supporting the continued safe, affordable and reliable operation of New England’s existing nuclear generation facilities. This coordinated regional initiative follows a major policy announcement in June 2025 by New York Governor Kathy Hochul directing the New York Power Authority to pursue development of at least 1,000 MW of advanced nuclear generation to support statewide reliability needs and New York’s zero‑carbon mission. Less than one year after New York formally embraced a modern nuclear renaissance, that renaissance has now expanded across the New England states—signaling a broader Northeast regional pivot toward nuclear as a core element of long‑term reliability, affordability and decarbonization strategies. For utilities and power generators, this shift creates both opportunities and planning imperatives that warrant immediate attention.
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Stephen J. Humes, PillsburyMr. Humes may be contacted at
stephen.humes@pillsburylaw.com
New Survey Reveals Overwhelmingly Optimistic Results on the Use of AI in Construction
May 14, 2026 —
Construction ExecutiveOn December 5, 2025,
CMiC and
Dodge released a
survey asking over 6,000 companies across various sectors of the construction industry their stance on artificial intelligence—whether they use it or not; whether they like it or not; whether they have or are planning to implement it or not; and so on. Considering its reputation for skepticism and reluctance when it comes to adopting new forms of technology, the construction industry pleasantly surprised CMiC and Dodge with its answers to these questions, with 87% of contractors believing AI will have a meaningful impact on construction.
“The research indicates the construction industry is nearing a tipping point for AI adoption,” says Steve Jones, senior director of industry insights at Dodge Construction Network, who sat down with Construction Executive to delve further into the survey questions and answers and what the industry’s current position on them means for AI’s future role in construction.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Parking Garage Partially Collapses in Dearborn, Mich., Trapping One
March 31, 2026 —
Annemarie Mannion - Engineering News-RecordA multi-level parking garage that partially collapsed in Dearborn, Mich., is fenced off and the city has started the legal process allowed under state law to demolish the privately-owned structure due to alleged dangerous conditions.
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Annemarie Mannion, Engineering News-RecordMs. Mannion may be contacted at
manniona@enr.com
Structuring Water Resilience for Data Center Development: Water Rights, Reuse Incentives, and Emerging Disclosure Risk
March 10, 2026 —
Ashleigh Myers, Jillian Marullo & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law BlogAs AI-driven data center development accelerates, developers, communities and regulators are increasingly focused on water demand—both the volume required and the sources from which that water will be drawn. While industry attention has largely centered on electricity procurement and grid impacts, the availability and legal entitlement to a firm water supply has become equally material to siting, permitting and community acceptance. Particularly as surface and groundwater supplies become increasingly constrained and new projects are sited in regions experiencing tighter hydrologic conditions or growth-related supply constraints, project teams are increasingly integrating water supply analysis into early-stage development to address issues that can materially affect schedule, financing and long-term operations.
Reprinted courtesy of
Ashleigh Myers, Pillsbury,
Jillian Marullo, Pillsbury and
Jason Drogin Atwood, Pillsbury
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
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