Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination
June 08, 2026 —
Paul Williamson - ConsensusDocsVolumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[
1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[
2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[
3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[
4]
As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor.
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Paul Williamson, Peckar & Abramson, P.C.Mr. Williamson may be contacted at
pwilliamson@pecklaw.com
Contractor Entitled to Defense Under Subcontractor’s Policy
March 10, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the trial court’s grant of summary judgment to the contractor’s insurer finding that the sumcontractor’s insurer had a duty to defend the contractor. Navigators Specialty Ins. Co. v. TBR Construction, LLC, et al., 2025 Ill. App. Unpub. LEXIS 2177 (Ill. Ct. App. Dec. 3, 2025).
Greenscape Homes, LLC was the general contractor for a residential development. Greenscape hired TBR Construction, LLC as a carpentry-framing subcontractor pursuant to a “Trade Contractor Agreement.” The Trade Agreement required TBR to name Greenscape as an additional insured. TBR was insured by Utica. Greenscape was insured by Navigators.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
PJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load Demand
May 12, 2026 —
Stephen J. Humes, Alicia M. McKnight, Jason Drogin Atwood & Andrew H. Jacobs - Gravel2GavelIn January, we discussed the Statement of Principles jointly signed by the National Energy Dominance Council and governors across the mid-Atlantic region—framing accelerating demand (especially from large-scale data centers) as an emergency reliability issue for PJM Interconnection, L.L.C. (PJM), the nation’s largest power grid operator. That policy signal is now becoming a near-term, accelerated procurement and contracting exercise. On April 8, 2026, PJM notified stakeholders of a critical issue fast path reliability backstop procurement process. PJM subsequently released a request for information (RFI) with respect to a proposed Reliability Backstop Procurement (RBP)—a one-time mechanism intended to attract significant new capacity to address projected reliability shortfalls driven by large-load growth.
RBP compresses what is often a multiyear market and regulatory conversation into a fast-moving set of commercial choices. Developers, large loads, utilities and capital providers should be preparing now for (i) an accelerated bilateral contracting window and (ii) a standardized PJM-led backstop procurement if bilateral deals do not clear enough capacity.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury,
Jason Drogin Atwood, Pillsbury and
Andrew H. Jacobs, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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Traub Lieberman Partners Lauren S. Curtis and Sarah A. Wilkins and Associate Veronica Guerra Win Motion for Summary Judgment
January 21, 2026 —
Traub LiebermanTraub Lieberman Partners Lauren S. Curtis and Sarah A. Wilkins and Associate Veronica Guerra recently won a motion for summary judgment in favor of an insurer in a matter brought before the United States District Court for the Southern District of Florida. In the underlying lawsuit, the insured, a property management company, was being sued in a wrongful death action arising from a shooting that occurred in the common area of a multi-family residential property managed by the insured. The insurer agreed to provide a defense to its insured in the wrongful death action, subject to a reservation of rights based on the policy’s Conditional Coverage Endorsement, which contains various conditions the insured must meet in order for coverage to be triggered under the policy. One of those conditions requires the insured to ensure that a property owner’s insurance policy must not contain any restrictions for assault and battery (“A&B”) exposures, including a sublimit for A&B claims. In this case, the property owner’s insurance policy did indeed contain a sublimit for A&B claims.
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Traub Lieberman
Battle Looms as Feds Order Washington State Coal Plant to Stay Open
January 21, 2026 —
Tim Newcomb - Engineering News-RecordJust days away from closure and a $600-million remake as a gas-powered facility, an independent power producer-owned coal-fired power plant in Washington state is ordered by the Trump administration to remain open through mid-March 2026—and likely longer—setting up a battle with state and company officials. Shutdown of the 730-MW plant, operating since 1972, was timed to comply with a state law banning coal power generation in 2026 and beyond.
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Tim Newcomb, Engineering News-RecordENR may be contacted at
enr@enr.com
Contract Disputes Act and Jurisdictional Requirements
March 17, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen dealing with a claim on a federal construction project, there are a couple of key background jurisdictional points. These points were briefly highlighted in the recent appeal, Mega Star Logistics Service Co. v. Department of State, CBCA 8232, 2026 WL 253738 (CBCA 2026). Here are the two points.
FIRST, when it comes to jurisdiction, for a board of contract appeals “to exercise jurisdiction over a claim, the CDA [Contract Disputes Act] requires the contractor to submit a written claim to the contracting officer for a COFD [contracting officer final decision], with a subsequent appeal of the COFD or deemed denial if the CO [contracting officer] does not issue a COFD.” Thus, you need to submit a formal claim under the Contract Disputes Act to the contracting officer to get a final decision from the contracting officer (or the contracting officer waiving the final decision by not timely furnishing one). Mega Star Logistics, supra.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
Kahana Feld Secures Discontinuance with Prejudice in Fraudulent Case
January 06, 2026 —
Kahana FeldKahana Feld secured a victory for its client after uncovering evidence that the plaintiff’s alleged trip-and-fall claim was fraudulent. The plaintiff sought $8 million in damages and claimed serious spinal and knee injuries stemming from an incident outside a Bronx retail store.
Through strategic investigation and a crucial non-party deposition, our team established that the plaintiff’s identified eyewitness was out of the country at the time of the alleged accident—contradicting the plaintiff’s testimony and confirming the falsity of the claim.
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Kahana Feld
