Labor Shortages in Construction: Managing Legal and Operational Risks
April 14, 2026 —
Meghan Douris - Construction ExecutiveLabor shortages in the construction industry have become more than a scheduling headache—they are a legal and financial risk multiplier. As contractors scramble to meet deadlines with limited manpower, shortcuts in compliance, safety and subcontractor oversight become more likely. These gaps can expose companies to regulatory penalties, contractual disputes and reputational damage. Understanding how workforce constraints intersect with labor laws and contractual obligations is critical to mitigating the risks and navigating these challenges without compromising compliance or project integrity.
The construction industry has faced persistent workforce challenges for years, but recent trends have intensified the problem. Factors such as an aging workforce, reduced immigration and post-pandemic recovery pressures have left contractors struggling to find skilled labor. According to
Associated Builders and Contractors, the construction workforce shortage surpassed half a million workers in 2024; in the same year,
Associated General Contractors reported 88% of construction companies had difficulty finding qualified workers.
Reprinted courtesy of
Meghan Douris, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Court Compels Appraisal Although Coverage Issues Exist
February 17, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe California federal district court granted the insured’s motion to compel appraisal despite the existence of outstanding coverage issues. K4 Dev. LLC v. ACE Am. Ins. Co., et al., 2025 U.S. Dist. LEXIS 211337 (C.D. Cal. Oct. 6. 2025).
The insured owned hotel property. It was insured by ACE while the hotel was under construction. During construction, the hotel suffered rainwater damage due to incomplete roofing systems. The water damaged the interior finishes and furnishings from the 6th floor down to the basement, including 32 guestrooms.
The insured’s experts determined that the covered water losses delayed the hotel’s opening by 144 days. The insured submitted a claim for the water damage, covered claim expenses, and delay in opening losses. ACE denied the claim for delay in opening losses, stating that its expert determined the Water Events did not delay the hotel’s opening. ACE, however, did pay for the repair damage caused by the Water Events.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Report Outlines Roadmap for Construction Jobsites to Cut Carbon Emissions by 2040
April 20, 2026 —
PCL ConstructionDenver, Colo., April 16, 2026 (GLOBE NEWSWIRE) -- A new industry report outlines five practical steps that, when implemented together, could reduce construction jobsite emissions by up to 75% without compromising cost, schedule or performance. Grounded in real operational data from 617 construction projects across the U.S. and Canada, Growing and Greening Canadian Construction represents the most comprehensive sector-wide analysis of jobsite emissions conducted to date.
The report was developed through a collaboration among leading general contractors, including
PCL Construction, in partnership with the Transition Accelerator, an organization that drives projects, partnerships, and strategies to promote economic competitiveness in a carbon‑neutral world. The report focuses specifically on emissions from construction jobsite activities and reflects a shared commitment to advancing practical, scalable solutions for the industry.
About PCL Construction
PCL is a group of independent construction companies that operates throughout the United States, Canada, the Caribbean and Australia. As one of the largest contracting organizations in North America, PCL completes more than $9.9 billion USD in work annually, building projects that shape communities. The company’s 100% employee ownership model fuels a culture of commitment for clients in the buildings, civil infrastructure, heavy industrial and solar markets. With a strategic presence in more than 30 major centers, PCL’s leadership teams consistently drive innovation and set new benchmarks for excellence, bringing unparalleled skill to every project. Watch us build at PCL.com.
About the Transition Accelerator
The Transition Accelerator works with 300+ partner organizations across Canada to build out pathways to a prosperous low-carbon economy and avoid costly dead-ends along the way. We help governments and industry harness the global shift towards clean growth to secure permanent jobs, abundant energy, and strong regional economies across the country. By connecting systems-level thinking with real-world analysis, we’re enabling a more affordable, competitive, and resilient future.
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Modular Construction’s Hidden Risk: Where Things Go Wrong Between the Factory and the Field
June 15, 2026 —
Jack Mayo - ConsensusDocsIntroduction
As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them. The appeal is straightforward: faster timelines, controlled fabrication environments, and reduced on-site labor demands. But the risks that accompany these benefits are often less clear—and, in many cases, poorly defined.
For example, what happens when a prefabricated component is delayed past its installation window? Who is responsible for a defect discovered inside a sealed, installed module? What happens to warranty obligations when a prefabricated component must be modified on site?
Read the full story...Reprinted courtesy of
Jack Mayo, Jones Walker LLPMr. Mayo may be contacted at
jmayo@joneswalker.com
Kahana Feld Announces Key Partner Additions Coast to Coast
June 22, 2026 —
Kahana FeldIRVINE, CA – June 10, 2026 – Kahana Feld is pleased to announce
Yvette Davis,
Evan Kalooky,
Beth Obra-White,
Sean Paden,
Michael Parme,
Jeffrey Schmid, and
Julieanne Yanez have joined the firm as partners. Four of these partners are joining the San Diego office, which further strengthens the firm’s General Liability and Construction Litigation practices and enhances Kahana Feld’s ability to serve clients across a broad range of complex matters in the region.
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Kahana Feld
AI & Digital Tools on Construction Projects: Contract Risks to Address Before Peak Season
April 08, 2026 —
Meghan Douris - The Construction SeytArtificial intelligence and advanced digital tools are no longer experimental on construction projects. In Q1 of 2026, we can already see how they are already influencing schedules, estimates, submittals, safety reporting, and day‑to‑day project documentation. As peak construction season approaches, many teams are accelerating adoption of AI to gain efficiency.
What often lags behind, however, is the contract framework governing how those tools are used—and how their outputs are treated when something goes wrong.
On sophisticated construction projects, that gap can quickly become a dispute driver.
Read the full story...Reprinted courtesy of
Meghan Douris, Seyfarth Shaw LLPMs. Douris may be contacted at
mdouris@seyfarth.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
Massachusetts Construction Industry Continues to Wait While Prompt Payment Law Is Put to the Test
March 31, 2026 —
Catherine Maronski - Construction Law ZoneEarlier this month, the Massachusetts Supreme Judicial Court (SJC) heard argument in J.C. Cannistraro, LLC v. Columbia Construction Co. et al., a dispute concerning the state’s Prompt Payment Act (PPA). Although a decision has yet to be issued, it could potentially pose widespread implications for high-value private construction projects moving forward – and perhaps backwards.
The PPA, G. L. c. 149, § 29E, enacted by the Massachusetts Legislature in 2010, has become a keystone in the construction industry. It was enacted to address, in part, downstream cash flow issues that tend to pervade construction projects by mandating a series of strict guidelines for submitting, and responding to, payment applications for private projects valued over $3,000,000. Amongst these requirements are set timeframes to respond to an application, as well as what must be contained in an application rejection. Critically, if an owner or upper-tier contractor fails to fully comply with all the statutory requirements in response to a proper payment application, the application is automatically “deemed to be approved” and payable. Significantly, however, this is not always the end of the line.
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Catherine Maronski, Robinson ColeMs. Maronski may be contacted at
cmaronski@rc.com