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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GRSM Marks Seventh Anniversary as First and Only Full-Service Law Firm in All 50 States, Climbs to #70 on Am Law 100
April 20, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani proudly celebrates the seventh anniversary of its becoming the first and only full-service law firm with offices and attorneys in all 50 states. Since launching its innovative 50-state platform in April 2019, GRSM has experienced extraordinary growth across markets, practices, and client relationships.
In the past seven years, GRSM has expanded its footprint with 20 new offices in both major and secondary markets and doubled its attorney headcount, growing from 940 to more than 2000 lawyers. This growth has propelled GRSM from the 40th to the 11th largest law firm in the United States, according to Law360, while also driving a significant rise on the Am Law 100 rankings, from #103 in 2019 to #70 in 2026. GRSM has served nearly half of the Fortune 500, a testament to its deep bench of lawyers and national capabilities.
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Gordon Rees Scully Mansukhani
Contractor Entitled to Defense Under Subcontractor’s Policy
March 10, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the trial court’s grant of summary judgment to the contractor’s insurer finding that the sumcontractor’s insurer had a duty to defend the contractor. Navigators Specialty Ins. Co. v. TBR Construction, LLC, et al., 2025 Ill. App. Unpub. LEXIS 2177 (Ill. Ct. App. Dec. 3, 2025).
Greenscape Homes, LLC was the general contractor for a residential development. Greenscape hired TBR Construction, LLC as a carpentry-framing subcontractor pursuant to a “Trade Contractor Agreement.” The Trade Agreement required TBR to name Greenscape as an additional insured. TBR was insured by Utica. Greenscape was insured by Navigators.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.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.
Elliott Backed Venture Sues Lloyds Over Avant Cladding, Times Reports
February 17, 2026 —
Eamon Farhat - BloombergElliott Investment Management and British housing tycoon Jeff Fairburn, joint-venture partners in UK homebuilder
Avant Homes Group, are suing
Lloyds Banking Group Plc over who should pay to fix properties that fail to meet post-Grenfell fire-safety standards, the Times reported.
Avant, which faces remediation costs of at least £107 million ($146 million) for potentially dangerous cladding, argues that Lloyds should shoulder part of the bill because most of the developments were built before 2014, when the homebuilder was under the bank’s ownership, the Times reported.
Cladding has become a contentious issue in the UK following the Grenfell Tower fire in June 2017, in which dozens died after flames spread rapidly through flammable exterior cladding on the West London high-rise, laying bare deep failures in Britain’s building safety regulations.
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Eamon Farhat, Bloomberg
The Deadline to File Suit on a Public Works Payment Payment Bond is Triggered by a Claimant’s Work on a Project Not by a Claimant’s Work Under a Contract
June 02, 2026 —
Garret D. Murai - California Construction Law BlogCalifornia law requires that prime contractors furnish a payment bond – providing for payment to lower-tiered subcontractors and suppliers – on state and local public works projects with a value in excess of $25,000. There are three conditions that must be satisfied when a claimant makes a claim against a payment bond on a public works project in California:
- First, generally, the claimant must have served a preliminary notice, unless the claimant is a first-tier subcontractor or supplier;
- The claimant must have “ceased to provide work” on the project; and
- The claimant must file suit against the payment bond no later than six (6) months after the period in which a stop payment notice must be given or, in other words, the earlier of 270 days after completion of the public works project or 210 days after a notice of completion or cessation was recorded on a public works project.
In
Tarlton & Sons, Inc. v. Great American Insurance Company, 111 Cal.App.5th 376 (2025), the 2nd District Court of Appeal examined whether a subcontractor timely filed a claim against a payment bond when a prime contractor was terminated and replaced by another prime contractor who the subcontractor continued to perform work for.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Settlement Agreements and Contracts Require a Meeting of the Minds
July 20, 2026 —
David Adelstein - Florida Construction Legal UpdatesA settlement agreement does not need to be executed for it to be enforceable as long as there was a MEETING OF THE MINDS. The same rings true for any contract regardless of whether the contract is signed – THERE NEEDS TO BE A MEETING OF THE MINDS.
In a recent case dealing with the settlement agreement on a construction lien, the essential settlement terms (money and mutual release) were memorialized in an e-mail exchange between the parties (owner and subcontractor). The settlement required the owner to pay the principal amount plus some attorney’s fees and then a mutual general release would be prepared. In response to the confirmatory email, the owner sent a check, which the subcontractor deposited, but the owner refused to sign the release signed and sent by the subcontractor. The owner further claimed it doesn’t need to pay the attorney’s fees because the lien amount was paid in full. The subcontractor sued arguing the owner breached the terms of the settlement. The appellate court agreed.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Arbitration Provision Must Be Incorporated into a Bond for Surety to Elect Arbitration
March 03, 2026 —
David Adelstein - Florida Construction Legal Updates“Sureties cannot exercise unilateral election rights that are reserved for the principal of the underlying contract.” Anderson Service Corp. v. Old Republic Surety Company, 2026 WL 61436, *2 (Fla. 4th DCA 2026). This was the holding in a recent case dealing with arbitration.
In this case, a subcontractor entered into a contract with a contractor that gave the contractor the right to elect arbitration in Pennsylvania. A dispute arose and the subcontractor recorded a construction lien. The contractor transferred the lien to a lien transfer bond under Florida law. (The contractor was the principal of the lien transfer bond.) The lien transfer bond surety then moved to compel the subcontractor to arbitration based on the underlying subcontract. The trial court agreed to compel arbitration but this was reversed on appeal.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
