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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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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Court Rules Cook County Misspent $243M in Transportation Funds
March 10, 2026 —
Annemarie Mannion - Engineering News-RecordA Cook County Illinois Circuit Court judge has ruled that the county violated the state constitution by using $243 million in transportation tax revenue during fiscal 2023 for non-transportation purposes, handing a legal win to a statewide coalition of construction trade groups.
Read the full story...Reprinted courtesy of
Annemarie Mannion, Engineering News-RecordMs. Mannion may be contacted at
manniona@enr.com
My Current Love-Hate Relationship with AI
June 08, 2026 —
Garret D. Murai - California Construction Law BlogIt’s early in the relationship, I know. But still, there are some things that bug me. Yet, I also know that it’s a relationship in which leaving is not an option, and even if I could, it’s not to the point where it’s so bad that I would do so. So, if you would, let me gripe a bit.
While there’s been much discussion about AI and, at least in my neck of the woods, a fair amount of discussion about how lawyers can, should, and must use AI or risk becoming discarded into the dustbin of history, much less has been written about clients’ use of AI.
Increasingly, I’ve gotten the sense that my clients are using AI. For example, I had a client ask for confirmation that if he disagreed with an administrative decision that he could file a writ of mandate, and if so, whether that deadline was 30, 60 or 90 days after the administrative decision. The answer to the first question was yes, and as to the second question, the answer was 90 days. This was from a client who, smart as he is, probably didn’t know this off the top of his head.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Executive Order Addresses Wildfire Rebuilding Delays Through Federal Preemption of State and Local Permitting
February 10, 2026 —
Olivia LaCasto & Josh Schneiderman - Snell & WilmerQuick Take
On January 23, 2026, one year after the Los Angeles wildfires, the President issued Executive Order 14377 directing the Secretary of Homeland Security, acting through the Administrator of the Federal Emergency Management Agency (FEMA), and the Administrator of the Small Business Administration (SBA) to consider regulations that would preempt state and local permitting requirements for federally funded reconstruction projects in the Pacific Palisades and Eaton Canyon areas. The Order mandates expedited federal environmental and historic preservation reviews, directs the development of legislative proposals, and orders an audit of California’s use of Hazard Mitigation Grant Program (HGMP) funding.
Key Provisions
Federal Preemption of State and Local Permitting
The Order directs FEMA and the SBA to consider promulgating regulations that would preempt state or local permitting processes found to have “unduly impeded” the timely use of federal emergency-relief funds by homeowners, businesses, or houses of worship seeking to rebuild. Under the proposed framework, preempted permitting regimes would be replaced with a self-certification requirement, whereby builders would certify to a federal designee that they have complied with all applicable substantive state and local health and safety standards. FEMA would retain authority to review all repairs and construction for compliance with applicable health and safety standards. Proposed regulations must be published within 30 days, with final regulations due within 90 days.
Reprinted courtesy of
Olivia LaCasto, Snell & Wilmer and
Josh Schneiderman, Snell & Wilmer
Ms. LaCasto may be contacted at olacasto@swlaw.com
Mr. Schneiderman may be contacted at jschneiderman@swlaw.com
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Colorado Court of Appeals Confirms: Prevailing Parties Can Recover “Fees on Fees” — Reinforcing Why Builders Should Strike Attorneys’ Fee Clauses From Their Contracts
December 30, 2025 —
David McLain - Colorado Construction Litigation BlogColorado developers, builders, and contractors should take notice of a recently published Colorado Court of Appeals decision that increases the financial exposure created by prevailing party attorneys’ fee clauses. In 1046 Munras Properties, L.P. v. Kabod Coffee, 2025 COA 71, the Court held, for the first time in a published Colorado case, that a prevailing party may recover not only contractual attorneys’ fees, but also the attorney fees incurred to obtain those fees. In short: “fees on fees” are now recoverable when a contract contains a broad fee shifting clause.
This development underscores the same warning sounded years ago in a prior HHMR blog post titled,
Attorney Fee Clauses Are Engraved Invitations to Sue. If prevailing party fee provisions already encouraged litigation, the Munras decision supercharges that incentive.
Read the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Reducing Rework on Construction Projects Benefits Budget, Schedule and Financial Loss
February 10, 2026 —
Brian Clarke - Construction ExecutiveThe costs of not building it right the first time is statistically staggering—some research suggests up to 20% of the total project costs. This article highlights the costs of re-work, provides a financial worksheet to track the costs of re-work, and a trusted tool to help reduce the impact of re-work.
Typically, when discussing rework, one thinks of the labor and material costs, but there are other costs associated with rework that are less easily quantified:
- Liquidated damages and related legal costs
- Potential for increasing safety incidents associated with rework
- Morale loss due to performing rework
- Loss of previously trained workers due to delays caused by rework
- Reputational loss and the inability to bid on future work
- Challenges of future work to be performed due to schedule delays on a current project
Reprinted courtesy of
Brian Clarke, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Clarke may be contacted at brianclarke1121@aol.com
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HDR Agreed to $12M Settlement With Miami Bridge Design-Build Team
May 12, 2026 —
Richard Korman - Engineering News-RecordHDR last year agreed to pay $12 million to the design-build construction contractor Archer Western-de Moya Group to settle its claims that the engineer had incompletely designed and under-designed Miami's new Signature Bridge when the joint venture committed to a fixed price prior to construction in 2018.
Read the full story...Reprinted courtesy of
Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
