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Real Estate & Construction News Roundup (6/24/26) – HUD to Fund AI Grants, Luxury Hotel Deal Investment Activity to Surge, ESPCs to Fund Energy and Infrastructure Improvements

July 06, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, data centers are exposed to climate change, commercial tenant sues CoStar, cities see opportunities in emerging sports markets, and more!

• With deferred maintenance growing and capital dollars stretched thin, local governments are using ESPCs to fund energy and infrastructure improvements through future operational savings. (Vicky Uhland, Construction Dive)
• The U.S. Department of Housing and Urban Development is offering up to $3 million in grants for local governments to deploy automated permitting and building code systems. (Ryan Kushner, Construction Dive)
• Luxury hotel deals are set to see a surge in investment activity due to strong fundamentals and strengthening capital markets. (Noor Adatia, Hotel Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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GRSM Secures Illinois Appellate Victory for Architectural Firm in Implied Warranty Dispute

May 14, 2026 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani Partner Jonathan Federman, Partner Thomas Cronin, and Senior Counsel Garrett Lee recently secured a victory in the Illinois Appellate Court, Fifth District, on behalf of the firm’s client, an architectural firm, in a liability dispute. The case arose following an entity’s purchase of a 111-unit building for use as an investment or rental property. The plaintiff made claims against the architect of the building, alleging that there were design defects that breached an implied warranty, as well as a negligence claim. GRSM argued that an architect could not be liable for implied warranties, particularly for an implied warranty which no Illinois court has ever recognized. GRSM further argued that Illinois law bars an architect from liability for negligence arising from a duty pursuant to contract under the economic loss doctrine. Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani

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What Prevents Innovation in Construction from Taking Off

September 15, 2026 — Aarni Heiskanen - AEC Business
In construction, we have the knowledge, technology, and innovative people to radically improve our performance, yet we’re still stuck in old ways. Why is that? I attended an annual gathering for real estate and construction professionals at Rakennustieto Oy, Finland’s leading building information provider. The day before, a half-day seminar was held at the same venue. During both events, we discussed the need for change in the construction sector. Everyone agreed that we need to radically improve how we produce and share information. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business

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4th Department Narrowly Interprets Professional Services

August 11, 2026 — Craig Rokuson - Traub Lieberman
In the recent case of Cty. of Erie v. Selective Ins. Co. of Am., 2026 NY Slip Op 04092 (App. Div. 4th Dept.), New York’s Appellate Division, Fourth Department held that a general liability carrier for a construction manager owed additional insured coverage to the County of Erie, notwithstanding an exclusion in the construction manager’s policy for injuries arising out of professional services. The underlying case involved injuries sustained when the underlying plaintiff fell off of her bicycle at a park owned by the County when she transitioned from the pavement edge to grass. Read the full story...
Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

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My Current Love-Hate Relationship with AI

June 08, 2026 — Garret D. Murai - California Construction Law Blog
It’s early in the relationship, I know. But still, there are some things that bug me. Yet, I also know that it’s a relationship in which leaving is not an option, and even if I could, it’s not to the point where it’s so bad that I would do so. So, if you would, let me gripe a bit. While there’s been much discussion about AI and, at least in my neck of the woods, a fair amount of discussion about how lawyers can, should, and must use AI or risk becoming discarded into the dustbin of history, much less has been written about clients’ use of AI. Increasingly, I’ve gotten the sense that my clients are using AI. For example, I had a client ask for confirmation that if he disagreed with an administrative decision that he could file a writ of mandate, and if so, whether that deadline was 30, 60 or 90 days after the administrative decision. The answer to the first question was yes, and as to the second question, the answer was 90 days. This was from a client who, smart as he is, probably didn’t know this off the top of his head. Read the full story...
Reprinted courtesy of Garret D. Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Benchmark Litigation Recognizes Andrea DeField Among Nation’s Top Young Litigators

September 08, 2026 — Hunton Insurance Recovery Blog
Hunton’s insurance coverage team is proud to celebrate the recognition of Andrea DeField on Benchmark Litigation’s 2026 40 & Under List, an annual ranking that highlights the nation’s leading litigators age 40 and under. Andrea was one of only six Hunton lawyers selected and was recognized in the South region. Benchmark Litigation’s 40 & Under List honors attorneys who have distinguished themselves through significant case work, client feedback, and peer review. This honor reflects Andrea’s reputation as one of the country’s leading policyholder-side insurance recovery litigators and her standing as a trusted advisor to companies facing some of today’s most complex insurance and risk management challenges. As head of Hunton’s cyber insurance practice, Andrea has built her career helping companies manage risk and maximize insurance recovery. Her practice spans the full spectrum of insurance-related issues, from advising clients on contractual risk transfer and insurance program design to representing policyholders in high-stakes coverage and bad faith disputes. She has guided clients through some of the most complex and widely publicized losses in recent years and helps companies recover under a broad range of insurance products, including D&O, professional liability, crime, property, cyber, and general liability policies. Read the full story...
Reprinted courtesy of Hunton Andrews Kurth LLP

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Chambers USA Recognizes Hunton’s Insurance Coverage Practice in 2026 Guide

June 29, 2026 — Hunton Insurance Recovery Blog
Hunton is pleased to announce that its insurance coverage practice was recognized nationally for Insurance: Dispute Resolution – Policyholder in the recently released 2026 Chambers USA guide. The team also received state rankings in Florida (Insurance: Dispute Resolution), Georgia (Insurance), the District of Columbia (Insurance: Policyholder), and Massachusetts (Insurance). In addition to the insurance team’s group recognition across multiple states, the 2026 guide included individual rankings for Lorelie “Lorie” S. Masters (USA Nationwide and District of Columbia), Latosha M. Ellis (District of Columbia), Michael S. Levine (District of Columbia), Koorosh “KT” Talieh (District of Columbia), Walter J. Andrews (Florida), Andrea DeField (Florida), Cary D. Steklof (Florida), Lawrence J. Bracken II (Georgia), and Geoffrey B. Fehling (Massachusetts). Read the full story...
Reprinted courtesy of Hunton Andrews Kurth LLP

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Breaking Ground On New California Public Works Prevailing Wage Requirements

April 27, 2026 — Heather Frisch, Christopher Bouquet & Ashley Stein - The Construction Seyt
Seyfarth Synopsis: As of January 1, 2026, AB 889 bulldozed California’s Prevailing Wage law, which impacts public works employers—including public agencies, the contractors that work for them, and private owners and developers whose projects may be subject to public works requirements. The amended law reframes the calculation of fringe benefits for individuals who work on public works project and mandates annualization of such benefits, demolishes the practice of frontloading these benefits, and requires employers to maintain inspection-ready records of compliance. This year, AB 889 significantly revised California’s prevailing wage law, codified at Labor Code section 1773.1, to clarify the state’s prevailing wage regulations and streamline enforcement. Accordingly, as of January 1, 2026, California public works employers are required to annualize employees’ fringe benefits and maintain specific documentation demonstrating statutory compliance. These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements. Continue reading for the blueprint of how to comply with the state’s amended prevailing wage law. Reprinted courtesy of Heather Frisch, Seyfarth Shaw LLP, Christopher Bouquet, Seyfarth Shaw LLP and Ashley Stein, Seyfarth Shaw LLP Ms. Frisch may be contacted at hfrisch@seyfarth.com Mr. Bouquet may be contacted at cbouquet@seyfarth.com Ms. Stein may be contacted at astein@seyfarth.com Read the full story...

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