Are “Financial Hardship” Damages Recoverable?
June 08, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president and his wife. Are these damages recoverable? Drumroll…The Board ruled that the contractor cannot recover such financial hardship damages.
As it relates the personal financial hardship damages, the Board ruled, “Neither [the contractor’s] president nor his wife are a party to this contract, are in privity of contract with [the government], or are the beneficiaries under this contract. [The contractor], therefore, cannot recover for any losses that either one has suffered individually and that [the contractor] claimed in this appeal.” F.O.G., LLC, supra.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Lost in Translation: AEC Tech’s Missing Role
May 12, 2026 —
Aarni Heiskanen - AEC BusinessI once visited a construction site where the contractor’s headquarters had commissioned a tech company to build an on-site quality-inspection application. The developer had admitted to the site engineer that they had never set foot on a construction site before. The engineer showed me what he was actually using: his own phone camera and an Excel sheet. The new app did not map to how work actually happened on site.
This is not an isolated story. The vendor builds something technically coherent but operationally disconnected. The client, somewhere up the chain, had fallen in love with the idea of the solution before anyone had built an honest business case for it.
The result is a tool that gets demonstrated at a board meeting but isn’t used in the field.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Safeguarding Your Privileged Construction Information With a Clawback Agreement
June 08, 2026 —
Laura Fraher - Construction ExecutiveFor contractors and construction executives, a
dispute that escalates to litigation brings risks that go well beyond the jobsite. When a dispute escalates to litigation, the attorney-client privilege is a critical protection to safeguard your interests. Disclosing privileged material can undermine your litigation position and, in some cases, negatively impact your business. In the construction context, this often includes sensitive communications about project delays, defect investigations, safety incidents or payment disputes—materials that can significantly impact both liability and reputation.
During litigation, the discovery process requires the exchange of documents and data with your adversary. If privileged materials are disclosed to your adversary during discovery you risk the waiver of your privilege, which in plain terms means you lose the protection of the privilege and make the privileged information, and in some cases all other information related to the same subject matter, available to your adversary. It is critical that your attorney take steps to protect against the unintentional disclosure of privileged materials during discovery to avoid a waiver.
Reprinted courtesy of
Laura Fraher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Ms. Fraher may be contacted at
lfraher@barclaydamon.com
Sometimes a General Damages Assessment is Enough. . .
July 06, 2026 —
Christopher G. Hill - Construction Law MusingsIt has been a while since I last posted here at
Construction Law Musings. Life, law practice, and “blogger’s block” have taken their toll on the posting schedule. Hopefully this will be one of several upcoming posts now that the litigation schedule has lightened a bit over the summer.
Today’s post is about damages. Specifically damage to a homeowner’s roof and her legal damages therefor. That last is of course a sentence that only a
construction attorney (or other litigator) could possibly craft and have it make sense. Now, on with the case. . .In
Hardesty Construction, Inc. v. Weedon, the facts are as follows:
Ms. Weedon had hail damage to the roof of her home. She hired Hardesty Construction to repair and replace the roof. After the first roof was installed and failed inspection, a second roof was installed. The issue was that the first roof had a warranty and the second roof, installed similarly to the first (and allegedly with the same construction issues according to Ms. Weedon’s expert), was not provided with the promised warranty. As one may expect, Weedon sued Hardesty and Hardesty Construction for fraudulent inducement and breach of contract. At trial, Weedon testified, without objection, that her home was worth $40,000 less because of Hardesty Construction’s work, which was based partially on quotes Weedon received to fix the roof. The Circuit Court granted Hardesty Construction’s motion to strike Weedon’s fraudulent inducement claim, but not her other claims. A jury awarded Weedon $30,253.30 on her breach of contract claim. Hardesty Construction appealed, arguing the Circuit Court erred in (a) allowing the jury to consider Weedon’s valuation testimony because it was not based on her personal knowledge and (b) denying its motion to strike based on insufficient evidence as to damages. Weedon assigned cross-error in the Circuit Court’s decision to grant the motion to strike her fraudulent inducement claim against Samual Hardesty.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Your AEC Firm Has a Memory Problem. Here Is How to Fix It
June 01, 2026 —
Aarni Heiskanen - AEC BusinessAEC companies trying to operationalize AI often find they lack the data foundation on which to build. There may be an abundance of data hidden in documents, but you can’t reliably use it for AI.
The lack of data quality was a key topic discussed at the AI in AEC 2026 conference. During the event, I met many experts working to solve this problem, including
Pavlina Nikolova,
Egnyte‘s EMEA AEC Practice Lead. The chat and her presentation highlighted the challenges and ways to overcome them.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
WSHB Managing Partner Chad Dunigan Named Finalist for Jerrold S. Oliver "Ollie" Award of Excellence
May 12, 2026 —
Wood Smith Henning BermanChad Dunigan, Managing Partner of Wood Smith Henning & Berman's Orlando, Florida, office, has been selected as one of just four finalists for the prestigious Jerrold S. Oliver Award of Excellence, affectionately known in the construction defect community as the "Ollie" Award. This distinguished honor recognizes individuals who have made exceptional contributions and demonstrated unwavering dedication to advancing the field of construction defect law.
Named in honor of the late Judge Jerrold S. Oliver, a revered founder of alternative dispute resolution in construction defect claims and litigation, the Ollie award symbolizes loyalty, commitment, and trust within the industry. Judge Oliver's legacy as a staunch believer in the resolution process continues to inspire professionals who strive for excellence in the construction defect community.
Read the full story...Reprinted courtesy of
Wood Smith Henning Berman
The Goal Is the Repair, Not the Lawsuit: What Colorado HOA Boards Should Consider Before Suing a Builder
September 08, 2026 —
Gail Gudder - Colorado Construction Litigation BlogFourteen years ago, we cautioned Colorado homeowners associations against a “ready, fire, aim” approach to construction-defect litigation. In
The Hidden Dangers of Construction Defect Litigation, we suggested a fairly simple proposition: when legitimate construction defects exist, the goal should be to get them repaired. Litigation should be a last resort, not an end in itself.
Much has changed in Colorado construction-defect law since then. But a recent Douglas County case, and significant amendments to the Colorado Common Interest Ownership Act (“CCIOA”) enacted in 2025, provide good reasons for HOA board members and owners to revisit that basic premise.
Read the full story...Reprinted courtesy of
Gail Gudder, Higgins, Hopkins, McLain & Roswell, LLCMs. Gudder may be contacted at
gudder@hhmrlaw.com
Insured General Contractor Prevails on Motion for Summary Judgment to Establish Builder’s Risk Coverage
July 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe general contractor’s motion for partial summary judgment successfully established that damage to footings in place before the policy period was covered after the collapse of a building. Big D Builders, Inc. v. Am Zurich Ins. Co., 2026 U.S. Dist. LEXIS 72012 (D. Idaho March 31, 2026).
Big D was the general contractor for building a new airplane hangar by erecting a 38,000 square foot structure. Before Big D began construction, the site of the hangar did not contain any pre-existing structures or buildings. Before completion of the hangar, it collapsed and caused extensive property damage.
The builder’s risk policy issued by Zurich covered certain aspects of the construction project for the policy period December 28, 2023, to December 28, 2024. Zurich accepted coverage for most of the damage but not for damage to footings and columns installed prior to the start date of the policy.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com