Real Estate & Construction News Roundup (7/8/26) – Data Centers Negotiate Flexibility for Speed, Hotel Deal Activities Focus on Luxury, and DC Sues Apartment Owners
July 20, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!
- Hyperscalers want their data centers online, and utilities want to provide interconnections, but both are still looking for common operating guidelines. (Herman K. Trabish, Construction Dive)
- Contractors are taking advantage of multibillion-dollar train and transit contracts, even as funding challenges create hurdles for project execution. (Matthew Thibault, Construction Dive)
- Although hospitality and leisure M&A deal volume was down 2.5% in the first half of 2026 compared to the prior six months, investors are concentrating on the upper end of the market, including luxury hotels, wellness resorts and gaming, or “data-rich,” platforms. (Noor Adatia, Hotel Dive)
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Pillsbury's Construction & Real Estate Law Team
New Year’s Resolution: Engineering the “Tee-Up Day” for Complex Construction Mediations
February 17, 2026 —
Joël Bertet - The Dispute ResolverThe construction industry is defined by its commitment to "Critical Path" scheduling. From the moment a project breaks ground, every stakeholder—from the MEP sub to the owner’s rep—is focused on sequencing. We know that you cannot hang drywall before the rough-in is inspected, and you cannot pour a slab-on-grade until the vapor barrier is verified.
Yet, when these projects devolve into litigation, the legal community often abandons the logic of sequencing. We rush headlong into "The Mediation Day"—a high-stakes, expensive, one-day marathon where we expect dozens of parties, hundreds of insurance layers, and thousands of pages of expert reports to magically align into a settlement by 6:00 PM.
As we open our calendars for the new year, it is time for a professional resolution. We must stop treating mediation as a single-day event and start treating it as a managed, sequenced process. The centerpiece of this resolution is the “Tee-Up Day.”
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Joël Bertet, ResolveBertetMr. Bertet may be contacted at
joel@resolvebertet.com
Arizona Court of Appeals Clarifies Homeowners Association Open Meeting Requirements
June 29, 2026 —
Jill Casson Owen, Benjamin J. Hawkins & Stephen Wright - Snell & WilmerA Z N H Revocable Trust v. Sunland Springs Village Homeowners Association, No. 1 CA-CV 25-0424 (Ariz. Ct. App. Apr. 28, 2026)
OVERVIEW
The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804. The decision reinforces the legislative policy favoring transparency in association governance, bringing association meeting requirements more in line with the open meeting standards applicable to public bodies under A.R.S. § 38-431 et seq. (Arizona’s Open Meeting Law).
KEY HOLDINGS
1. All Voting and Formal Actions Must Occur in Open Meetings
The Court affirmed that association boards cannot vote or take formal action during closed (executive) sessions. Under A.R.S. § 33-1804(A), associations may close portions of meetings only for “consideration” of certain enumerated topics, such as legal advice, pending litigation, or personal/financial information about individual members. The Court interpreted “consideration” to mean discussion and deliberation, not voting. The Court noted that dictionaries define “consider” as “spending time thinking about a possibility” and “formulating an opinion,” which are processes that precede formal action. This interpretation mirrors how Arizona’s Open Meeting Law (A.R.S. § 38-431.03(D)) prohibits public bodies from voting in executive session.
Reprinted courtesy of
Jill Casson Owen, Snell & Wilmer,
Benjamin J. Hawkins, Snell & Wilmer and
Stephen Wright, Snell & Wilmer
Ms. Owen may be contacted at jowen@swlaw.com
Mr. Hawkins may be contacted at bhawkins@swlaw.com
Mr. Wright may be contacted at swright@swlaw.com
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Communication Gaps Can Cost Construction Firms in the Data Center Boom
June 02, 2026 —
Mike Lewis - Construction ExecutiveThe
data center construction boom is transforming the construction industry at a historic pace. Fueled by cloud computing, artificial intelligence and relentless demand for digital infrastructure, data centers have become one of the fastest-growing project types in the built environment. Billions of dollars are flowing into new facilities and expansions, creating unprecedented opportunities for construction firms positioned to deliver reliably.
But opportunity alone does not guarantee success. As competition intensifies, communication failures and poor information management are emerging as some of the most common (and costly) reasons firms lose margins, miss deadlines or fail to secure repeat work. In data center construction, where schedules are compressed and tolerance for error is minimal, even small breakdowns in communication can have outsized consequences.
Reprinted courtesy of
Mike Lewis, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Surety Liability Is Coextensive with Its Bond Principal
April 14, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent Miller act payment bond case, U.S. f/u/b/o Whitetail General Constructors v. Northcon, Inc., 2026 WL 46671 (D.Mont. 2026), contains a short noteworthy discussion as to a surety’s liability being coextensive with that of its bond principal. If you are bonded, or you are pursuing a bond, you need to appreciate this, which is why this is a noteworthy discussion:
A “surety’s liability on a Miller Act bond must be at least coextensive with the obligations imposed by the Act if the bond is to have its intended effect.” “Therefore, ‘the liability of a surety and its principal on a Miller Act payment bond is coextensive with the contractual liability of the principal only to the extent that it is consistent with the rights and obligations created under the Miller Act.’” In other words, “[w]here a subcontract’s terms are consistent with the Miller Act’s provisions, the surety’s liability on the Miller Act bond is coextensive with the contractual liability of its princip[al].”
“The liability of a surety under the Miller Act is controlled by federal law, rather than state contract law[.]” The court may, however, “look to state law when interpreting contractual provisions” in a Miller Act case.
“[T]he measure of recovery under the Miller Act is generally determined by the terms of the subcontract [or underlying contract].”
Northcon, supra, at *4-5 (internal citations omitted).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
GRSM Attorneys Named Finalists in 2026 Women, Influence & Power in Law Awards
March 10, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani attorneys have been shortlisted as finalists for Corporate Counsel’s 2026 Women, Influence & Power in Law (WIPL) Awards, which honor women leaders who have demonstrated a commitment to advancing the empowerment of women in the legal profession.
In the Law Firm Internal Collaborative Leadership category, Stephanie Jones was recognized for her exceptional ability to foster collaboration, mentor talent, and align colleagues across GRSM. Jones has consistently demonstrated leadership rooted in trust, inclusion, and shared purpose, qualities that have strengthened the firm during a period of extraordinary growth. Her impact on the firm’s culture and success will continue as she steps into her role as Chief Operating Partner in June 2026, where she will further build on her leadership in fostering teamwork, mentorship, and alignment across the firm’s national platform.
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Gordon Rees Scully Mansukhani
The AVOID Act: A New Timeline for Liability in New York Construction Projects
February 23, 2026 —
Meghan Douris - The Construction SeytBy April 18, 2026, New York construction litigation will operate on a faster—and far less forgiving—timeline. The Avoiding Vexatious Overuse of Impleading to Delay (the “AVOID Act”), signed into law on December 19, 2025, fundamentally rewrites third‑party practice under CPLR § 1007 by imposing strict deadlines to bring subcontractors, suppliers, and other responsible parties into a case.
For owners, developers, general contractors, and their in‑house counsel, this change will shift risk assessment, contract enforcement, and litigation strategy to the very front end of a claim—particularly in New York Labor Law and construction defect cases.
What Changed—and Why It Matters to Construction Cases
Historically, New York defendants could implead subcontractors and other players well into discovery. The AVOID Act ends that practice.
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Meghan Douris, Seyfarth Shaw LLPMs. Douris may be contacted at
mdouris@seyfarth.com
Navigating Wind and Solar Development Opportunities on State and Private Lands During Uncertain Times for Renewable Energy
February 02, 2026 —
Cara M. MacDonald, Robert G. Howard & Andrew Jacobs - Gravel2Gavel Construction & Real Estate Law BlogRecent executive actions and federal guidance have targeted wind and solar development, creating substantial uncertainty for the U.S.
offshore wind industry and also reshaping the regulatory landscape governing onshore wind and solar development. Wind and solar projects on federal lands are now subject to heightened review processes and enhanced regulatory scrutiny. As a result, many developers are considering opportunities on state-owned and privately held lands rather than federal lands.
2025 Federal Executive Actions Impacting Wind and Solar
At the federal level, renewable energy development on public lands is governed primarily by the Federal Land Policy and Management Act and administered by the Bureau of Land Management. The agency provides rights of way and leases (in designated leasing areas) for energy project development. Despite significant incentives for renewable energy development under the Biden administration, the Trump administration has deprioritized renewable energy in support of traditional energy sources like oil, gas and coal, as well as nuclear and geothermal energy.
Reprinted courtesy of
Cara M. MacDonald, Pillsbury,
Robert G. Howard, Pillsbury and
Andrew Jacobs, Pillsbury
Ms. MacDonald may be contacted at cara.macdonald@pillsburylaw.com
Mr. Howard may be contacted at robert.howard@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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