Navigating the DOT’s Interim Final Rule on DBE Certification Standards - and Preparing for the (Bumpy) Road Ahead
October 27, 2025 —
Virginia Trunkes - Construction Law ZoneLast week, as a result of the federal government shutdown, news outlets reported on a pause in processing project reimbursements for the massive bi-state Hudson Tunnel Gateway Program and New York City’s Second Avenue Subway line. Beyond the political finger-pointing and investigation into the pause’s impact (the billions of dollars already appropriated remain untouched) is the federal Department of Transportation’s publication, also last week, of its interim final rule (“IFR”) Docket No. DOT–OST–2025–0897. Effective October 3, 2025, this IFR removes from its regulations at 49 C.F.R. Parts 23 and 26 race and gender-based presumptions of social and economic disadvantage from DOT’s regulations governing its Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) programs. In doing so, it replaces terms like “race-neutral/race-conscious” with “DBE-neutral/DBE-conscious” frameworks, and adds new sections (§§ 23.81 and 26.111) that require each Unified Certification Program (UCP), i.e., each state’s agency that sets the criteria for firms seeking DBE/ACDBE certification, to reevaluate any currently certified DBE, to recertify any DBE that meets the new certification standards, and to decertify any DBE that does not meet the new certification standards or fails to provide additional information required for submission under the new certification standards.
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Virginia Trunkes, Robinson & Cole LLPMs. Trunkes may be contacted at
vtrunkes@rc.com
No Cross-Complaint Needed - Court of Appeal Clarifies Co-Defendants May Oppose Each Other’s Summary Judgment Motions Without a Cross-Complaint
October 27, 2025 —
Haight Brown & Bonesteel LLPOn September 29, 2025, the Second District Court of Appeal issued an opinion in Bean v. City of Thousand Oaks (B338497), holding that a co-defendant with an adverse interest can oppose a motion for summary judgment without having filed a cross-complaint against the moving party.
Plaintiff Bonnie Bean tripped and fell on a raised section of sidewalk in front of a Ventura County residence. She sued both the City of Thousand Oaks and Gina Goode, the owner of an adjacent property, alleging that tree roots from Goode’s yard caused a sidewalk defect.
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Haight Brown & Bonesteel LLP
Moving in Before Substantial Completion? The Risks of Early Owner Occupancy
March 24, 2026 —
Sydney Koby - ConsensusDocsIntroduction
On many construction projects, particularly large projects facing schedule pressure, owners may begin occupying or using portions of the project before the work reaches substantial completion. This is often due to operational needs, phased turnover, or market demands that drive owners to take possession of all or part of a project while construction activities are ongoing. While early occupancy may seem practical, it can blur the lines of responsibility between owner and contractor and can create significant legal and practical complications.
These disputes are especially common on large, complex projects where punch list work, system commissioning, and closeout activities overlap with owner use. Without clear documentation and carefully drafted contract provisions, early occupancy can undermine an owner’s ability to enforce completion requirements while simultaneously exposing the contractor to claims of delay, inefficiency, or interference.
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Sydney Koby, Jones WalkerMs. Koby may be contacted at
skoby@joneswalker.com
Course of Conduct Can Serve as Waiver or Modification of Parties’ Contract
December 22, 2025 —
David Adelstein - Florida Construction Legal UpdatesWhen you enter into a contract, the language in the contract means something. And if you don’t follow what the contract says, it will be used against you. It can be used to support the argument that you breached the contract. Or it can be used to demonstrate your lack of compliance with the contract does not entitle you to the recourse you are seeking. However, this does not mean under certain circumstances the language of the contract cannot be waived or modified by the parties’ course of conduct.
In a recent dispute, an owner and contractor sued each other under a cost-plus contract. The contractor recorded a construction lien and moved to foreclose its construction lien. The owner claimed it was over-charged and claimed the contractor breached the contract. The contractor also claimed it was not timely paid with improperly withheld payment applications. The trial court granted summary judgment in favor of the contractor, which was affirmed on appeal based on the parties’ course of dealing:
The trial court concluded that, although the parties’ cost-plus contract required that all change orders be approved in writing, the summary judgment record established that this provision was routinely waived by the parties’ course of dealing: [owner] would orally request changes to the project; [contractor] would perform those changes; and [owner] would pay the invoices for those changes.
Moscato Corp. v. Mutchnik Construction Group, Inc., 411 So.3d 570 (Fla. 3d DCA 2025)
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Science-Based Standards for Wildfire Recovery: What California Policyholders Need to Know About A.B. 1642
March 03, 2026 —
Geoffrey B. Fehling & Yosef Itkin - Hunton Insurance Recovery BlogWildfires continue to present serious risks for California property owners. Unfortunately, commercial property owners, corporate facilities, landlords, and homeowners need to overcome not only the flames themselves, but also remediating hazardous contamination against a backdrop of unpredictable and ambiguous environmental safety standards. In response to the destructive Los Angeles area fires in 2025, the California Legislature recently introduced Assembly Bill 1642 aimed at creating uniform science-based standards for evaluating, testing, and clearing wildfire-impacted properties.
While A.B. 1642 is in its early stages of consideration, it could materially influence claims handling, remediation costs, risk management practices, and broader liability exposures for California policyholders.
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth LLP and
Yosef Itkin, Hunton Andrews Kurth LLP
Mr. Fehling may be contacted at gfehling@hunton.com
Mr. Itkin may be contacted at yitkin@hunton.com
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Why Hurricane Preparedness Isn’t About the Property
November 21, 2025 —
Brad Hill - Construction ExecutiveAlong Florida’s 8,436 miles of shoreline, residents face a persistent threat: hurricanes and the often catastrophic damage these natural weather events inflict. Come late summer and autumn, meteorologist forecasts transition from sun and clear skies to overcast days, high winds and heavy rainfall that signal disaster may be afoot.
The state’s construction industry is particularly sensitive to volatile weather patterns, with real estate developments at high risk of destruction if hurricanes cross their path. And with each significant weather event, the losses are substantial. According to the National Centers for Environmental Information, there were nearly 100 disaster events in Florida with financial losses exceeding $1 billion each between 1980 and 2024.
Reprinted courtesy of
Brad Hill, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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To Settle or Not Settle: Factors to Weigh and Practical Considerations
January 13, 2026 —
Gerard J. Onorata - ConsensusDocsDeciding to settle a construction dispute is often wrought with difficulty, requiring the decision maker to evaluate a number of factors. Nevertheless, there are no hard and fast rules that apply when advising a party whether or not they should settle a dispute. Yet the vast majority of construction disputes do settle before going to trial or arbitration. In fact, recent statistics show that approximately 95% of all civil cases, including construction disputes, settle before trial[1]. However, whether settlement is always the best choice depends on several factors to be discussed here.
Merits of Your Case
First and foremost are the merits of your claims and defenses against any claims that are asserted against you. Construction disputes are inherently fact sensitive, and the merits of a case are driven by the facts of the dispute. Simple breach of contract actions for balances of unpaid funds for the work and materials that have been provided and installed on a project make weighing the merits of the affirmative claim relatively simple. However, these types of “collection cases” stand in stark contrast to complex construction delay claims for equitable adjustment where there exist competing and numerous causes of the delays. In addition, there are complicated legal principles applicable to whether there is entitlement to compensation for the delay or simply an extension of time. Construction defect claims where technical engineering issues are involved also present a heightened level of complexity that may make such cases difficult to prove on the merits.
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Gerard J. Onorata, Peckar & Abramson, P.C.Mr. Onorata may be contacted at
gonorata@pecklaw.com
“He Chose…Poorly: How Bad DSC Clauses Lead to Project Doom in the Last Crusade of Construction Risk”
March 10, 2026 —
Curt Martin & Lee Banta - ConsensusDocs“We do not follow maps to buried treasure, and X never, ever marks the spot.” That’s the advice that Indiana Jones offered in the Last Crusade film. But what’s beneath the surface isn’t just important to adventure archaeologists. It has real-world application to our industry, where success depends on the stability of materials below the surface.
The study of geology and soils has ancient roots. Egyptians relied on soil stability for the pyramids; Rome built a continent-wide roadway system utilizing subgrade preparation techniques; Medieval builders implemented a rudimentary foundation pier system; Henri Gautier studied what is now called the “angle of repose” for French retaining walls in the early 18th Century.
Through the 19th Century, contractors bore the risk of the stability of their work, and the attendant peril of unforeseen site conditions. But in the early 20th Century, design trades continued to develop increased understanding of soil and underground conditions. In the 1920’s US federal contracts began employing “differing site conditions” clauses, which provided for cost/time adjustments if subsurface conditions differed from expectations. Industry forms followed the federal policy, and these clauses became almost universally accepted.
Reprinted courtesy of
Curt Martin, Peckar & Abramson, P.C. and
Lee Banta, Peckar & Abramson, P.C.
Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Banta may be contacted at lbanta@pecklaw.com
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