New York Moves to Tighten Third-Party Practice: Key Changes to CPLR 1007
March 31, 2026 —
Sophia L. Cahill - SheppardEffective April 18, 2026, the New York Legislature enacted the Avoiding Vexatious Overuse of Impleading to Delay (“AVOID”) Act, amending CPLR 1007—the statute that governs third-party practice. The amendment sharply limits when and how defendants can commence third-party actions, curbing the expansive discretion they previously enjoyed and targeting the late-stage impleaders that often upend case schedules.
What Changes
Before the AVOID Act was signed into law on December 19, 2025 (and subsequently modified by Chapter Amendments A9502 and S8809, signed by Governor Hochul on February 13, 2026[1]), CPLR 1007 gave defendants broad latitude to implead “any person who is or may be liable” for all or part of the plaintiff’s claim. CPLR 1007 specified no outside time limit for the initiation of a third-party claim; courts assessed only whether a defendant’s delay was undue—such as impleading months after the note of issue—and whether the plaintiff would suffer prejudice if the third-party action were not severed.
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Sophia L. Cahill, SheppardMs. Cahill may be contacted at
scahill@sheppard.com
California Enacts Change Order Fair Payment Act
March 24, 2026 —
Michael J. Baker - Snell & WilmerFor private works construction contracts entered on or after January 1, 2026, recent legislation establishes a claims and dispute resolution process for change orders. The law is codified at Civil Code § 8850. A synopsis of the pertinent provisions includes the following:
- Submitting a Claim. Contractors or subcontractors must submit a detailed, documented claim when requesting additional time or payment.
- Owner’s Response Time. The owner must meet and confer within thirty (30) days after receiving the claim. Within ten (10) days of meeting, the owner must provide a written statement identifying which portions of the claim are undisputed and which are disputed. An owner’s failure to respond is treated as disputing the entire claim.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com
From Dark Data to Building Intelligence
July 13, 2026 —
Aarni Heiskanen - AEC BusinessIn this episode, I talk with Mark Sorsa-Leslie, founder and CEO of
Auttaa AI, whose team just won first place in Luotea’s inaugural hackathon in Helsinki for turning property maintenance from reactive firefighting into proactive forecasting with AI. Mark is a chartered surveyor with 30 years of real estate data experience, previously the founder of the UK sensor company Beringar.
We discuss why so much building data stays dark and siloed, from outdated networking technology to the shortage of people who understand both engineering and property. Mark explains how Auttaa bridges real-time building data with large language models, using what he calls an “influence graph” to surface correlations and causation across previously disconnected systems, such as linking occupancy patterns to CO2 readings to diagnose ventilation problems in minutes rather than days.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Insured’s Bad Faith Claim Survives Summary Judgment
July 13, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026).
Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the deductible.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Modular Construction’s Big Boom: New Risks Outpacing Standard Contracts in Industrial Projects
March 24, 2026 —
Chad Theriot & Jack Mayo - Construction ExecutiveModular construction is revolutionizing the construction industry, tackling labor shortages, sustainability goals and supply-chain challenges, with the global market for modular and prefabricated construction projected to reach over $200 billion by 2030. While residential builders have embraced modular’s speed and affordability, the greatest risks—and opportunities—are emerging in the industrial sector, where project scale and complexity demand new legal strategies.
In 2023, Chad Theriot explored industrial and infrastructure applications of modular construction, addressing risks like offsite fabrication and integration complexities in his article, “
The Rise of Modular Construction—Impacts for Consideration.” Since that time, modular construction has continued to experience significant advancements and has been increasingly adopted by contractors across a broad spectrum of industrial and commercial projects. As modular construction continues to reshape the industrial landscape, contractors and owners alike must be mindful of the legal implications associated with its use, specifically as it relates to liability and risk allocation, regulatory compliance, quality control and upstream factors such as transportation and intellectual property concerns.
Reprinted courtesy of
Chad Theriot and Jack Mayo, 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
Applying Jury Verdict Method in Quantifying Damages Due to Defective Specifications
March 31, 2026 —
David Adelstein - Florida Construction Legal UpdatesAn older case deals with three important considerations: (1) defective specifications; (2) whether the defective specifications were misleading or misrepresentative; and (3) applying the jury verdict method in quantifying damages.
In Metric Construction Co., Inc. v. U.S., 80 Fed. Cl. 178 (Fed. Cl. 2008), a contractor was contracted by the federal government to construct a warehouse. There were defects in the structural steel design specifications underlying the standing seam metal roof installed by the contractor and, as a result, the roof system leaked causing damage. The contractor incurred significant costs in repairing the damage, and pursued recovery of these costs against the government. The contractor claimed the structural steel design serving as the framework for the metal roof was defective and misleading and caused the leaks.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
What Construction Attorneys Do and When Contractors Need Them
August 11, 2026 —
Construction ExecutiveDirect Answer
A construction attorney advises contractors on contracts, payment rights, mechanic's liens, payment bond claims, change orders, delay claims, OSHA matters, defect claims, terminations and dispute resolution. The work covers far more than lawsuits—much of its value comes before a dispute ever becomes formal.
Construction attorneys help contractors protect payment rights, manage project risk, resolve disputes and avoid contract terms that can turn a profitable job into a financial loss. Their work covers more than lawsuits. A construction attorney may review a contract before bid day, help preserve lien rights, respond to a defective work claim, prepare for mediation or defend a contractor after a safety citation.
For contractors, legal counsel is often most valuable before a dispute becomes formal. A missed notice deadline, vague scope clause, unsigned change order or broad indemnity provision can create problems long before a claim is filed. Construction attorneys help identify those risks while there is still time to negotiate, document the issue or preserve leverage.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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