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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USDOT’s DBE Interim Final Rule: How It Affects Current and Out-to-Bid DOT and Airport Projects
June 15, 2026 —
Zachary F. Jacobson - The Construction SeytIn our April 16, 2026 post, we discussed the U.S. Department of Transportation’s Interim Final Rule (IFR) concerning Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certification, specifically as it concerns transportation and airport projects in California.
This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals? The answer is that the IFR did more than change who qualifies as a DBE. It also changed how federally funded transportation and airport projects must be handled during the re-evaluation period. This affects active contracts, pending procurements, airport projects, design-build teams, and anyone relying on old assumptions about DBE goals and counting of DBE and ACDBE credit.
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Zachary F. Jacobson, Seyfarth Shaw LLPMr. Jacobson may be contacted at
zjacobson@seyfarth.com
Oracle's $16B Michigan Data Center Secures Financing as Power Contracts Face Appeals
June 08, 2026 —
Bryan Gottlieb - Engineering News-RecordA $16 billion hyperscale data center under construction outside Ann Arbor, Mich., has secured financing backed by Blackstone and other institutional investors, even as the project's power supply agreements now face a legal challenge before the Michigan Court of Appeals.
Read the full story...Reprinted courtesy of
Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
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
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
Supply Chain Is a Legal Exposure—Not Just a Force Majeure Problem
September 08, 2026 —
Owen Newman - Construction ExecutiveThis is not another force majeure article. The supply-chain related legal exposure that contractors are carrying today—in sanctions risk, specification non-compliance, warranty exposure and regulatory volatility—extends well beyond what even a well-drafted force majeure clause protects.
An engineering, procurement and construction contractor on a gas-fired power plant discovers during commissioning that transformer oil in a critical unit contains Russian-origin naphthenic base oil, which is a prohibited source under Office of Foreign Assets Control sanctions. The contractor didn’t source it. A subsupplier two tiers below made the substitution when disruptions in the Strait of Hormuz tightened the primary supply chain for this specialty product and no one in the purchase-order chain flagged it. The procurement decision is long done and the documentation trail that should have caught it doesn’t exist.
Reprinted courtesy of
Owen Newman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Mr. Newman may be contacted at
oknewman@duanemorris.com
ACEC Supports BUILD America 250 Act as Important First Step on Surface Reauthorization
May 26, 2026 —
The American Council of Engineering CompaniesWASHINGTON -- The American Council of Engineering Companies (ACEC), the business voice of America’s engineering and design services industry released the following statement on the BUILD America 250 Act:
"Chairman Graves and Ranking Member Larsen have taken an important bipartisan step toward reauthorizing the federal surface transportation programs that are critical to economic growth in every state. The BUILD America 250 Act provides five years of stability in funding road and transit projects, raises new revenues to address the solvency of the Highway Trust Fund, and includes meaningful provisions to strengthen project delivery, advance digital infrastructure, and improve the contracting framework that engineering firms rely on every day. ACEC will continue to advocate for investment levels that keep pace with the country's growing infrastructure needs, and we urge the Committee to keep this process moving forward."
The American Council of Engineering Companies (ACEC) is the business association of America’s engineering industry, representing more than 5,500 independent engineering firms and more than 650,000 professionals throughout the United States engaged in the development of America’s transportation, water, and energy infrastructure, along with environmental, industrial, and other public and private facilities. Founded in 1906 and headquartered in Washington, D.C., ACEC is a national federation of 51 state and regional organizations.
Insurer Dispenses with Bad Faith Claim on Summary Judgment
June 22, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer’s motion for partial summary judgment because the insured failed to present evidence that the insurer failed to conduct a reasonable investigation. PSY Burger, LLC v. State Farm General Insurance Company, 2026 U.S. Dist. LEXIS 66991(C.D. Cal. March 20, 2026).
The insured’s commercial property suffered heavy damage from tropical storm Hilary. State Farm denied coverage to repair the damage. The insured sued State Farm alleging breach of contract and bad faith due to an inadequate investigation. Apparently, the insured did not retain an expert to opine on claims handling.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
