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
Federal Bid Protest Standard of Review and Disparate Treatment with Ratings
August 16, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent decision out of the Federal Claims Court explains the post-award bid protest standard of review.
In Massman Construction Co. v. U.S., 2026 WL 1971985 (Fed.Cl. 2026), a protestor brought a post-award bid protest after the Army Corps of Engineers awarded the contract to another contractor. The protestor argued that the Army Corps (government) acted irrational in its evaluation through disparate treatment. The Court of Federal Claims agreed and remanded for the Army Corps to “either justify this disparity or explain why [awardee’s] lower-priced, but technically inferior proposal provides the best value to the government.” Massman Construction, supra at *1.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law
June 29, 2026 —
Brenda Radmacher - The Construction SeytDaily Journal (California) featured an article by Construction Law partner
Brenda Radmacher, “A new path for construction defects in California.” The piece, published on June 15, 2026, examines Assembly Bill 1903 and its potential to significantly reshape California’s construction defect framework, particularly for common interest properties.
The article highlights how AB 1903 would overhaul the state’s current right-to-repair system by mandating completion of prelitigation procedures, raising requirements for defect claims, strengthening developers’/builders’ rights to repair, and introducing a voluntary “certified building” program. The legislation aims to rebalance competing interests by reducing litigation-driven costs while preserving protections for homeowners.
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Brenda Radmacher, Seyfarth Shaw LLPMs. Radmacher may be contacted at
bradmacher@seyfarth.com
Insufficient Notice of Commencement and Construction Lien Rights
August 03, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen a party is preserving their construction lien rights, the party will look to the recorded Notice of Commencement. This is the recorded document that provides the lienor with the information for purposes of preserving construction lien rights. A Notice to Owner company will typically rely on the Notice of Commencement to serve Notices to Owners from lower tiers not in contract with the owner. However, when it comes to preparing the lien, a lienor should look beyond just the Notice of Commencement and also look to the property appraiser’s website as a backstop.
In a recent case, a window company had the homeowner sign the Notice of Commencement and then filled in the information. The company naturally did this for the convenience of the homeowner that probably was unfamiliar with the Notice of Commencement process. Regardless, information in the Notice of Commencement was inaccurate. It failed to include all the real property owners. Thus, when a payment dispute arose and a construction lien was prepared, it did not identify all of the real property owners. All of the real property owners were added later during the pendency of a lien foreclosure lawsuit. The trial court denied the lien because of the defective / insufficient Notice of Commencement — the lienor assumed the risk of error by filling out the information in the Notice of Commencement. The trial court further denied the lien holding that because the work did not commence within 90 days of the Notice of Commencement, the Notice of Commencement is void.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
The Single Source of Truth in Construction Projects: Reality or Myth?
March 24, 2026 —
Aarni Heiskanen - AEC BusinessThe idea of a single source of truth has been a fundamental part of the digital vision in the AEC industry for many years. From centralized CAD storage to BIM collaboration platforms and, more recently, Common Data Environments, the goal stays the same. Project teams want a reliable place where everyone can access the latest information.
The phrase “single source of truth” comes from database and information management practices in the IT world, where the goal was to maintain one authoritative record of data and eliminate data redundancy. As the AEC industry began adopting digital tools, the same idea was applied to project information and workflows.
Despite decades of technological progress, the question remains whether “one ring that rules them all” can actually be implemented in real construction projects.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Powering Data Centers in a Moving Regulatory Landscape: Positioning Deals Before FERC’s Next Move
April 27, 2026 —
Stephen J. Humes, Alicia M. McKnight & Andrew H. Jacobs - Gravel2Gavel Construction & Real Estate Law BlogThe explosive growth of data‑center load—driven by artificial intelligence, cloud computing and the expansion of digital infrastructure across industries—has forced U.S. energy regulators into unfamiliar territory. Nowhere is this more evident than at the Federal Energy Regulatory Commission (FERC), which is actively considering how large, concentrated loads can be powered without compromising grid reliability or shifting costs to other customers.
FERC has not yet issued a standalone rulemaking on data centers. But make no mistake, the regulatory framework is quietly and deliberately being built. For developers, hyperscalers, utilities and investors, the period before FERC finalizes its next round of decisions represents the critical window to crystallize advocacy and structure transactions in ways that anticipate regulatory change.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, 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. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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Actual Controversy Without Actual Exhaustion: California Supreme Court Allows Declaratory Relief and Bad Faith Claims Against Excess Insurers
August 24, 2026 —
Kyle A. Rudolph - Saxe Doernberger & Vita, P.C.California courts were previously split on the issue of whether an insured may bring declaratory relief claims against excess insurers prior to the exhaustion of underlying insurance. Some California courts held that the actual exhaustion of underlying insurance was necessary, whereas other courts allowed for these types of claims to proceed.[
1]
Recently, the California Supreme Court addressed this split of authority and, in doing so, handed down a significant win for policyholders. In Fox Paine & Company, LLC, et al. v. Twin City Fire Insurance Company et al., the Court held that insureds may proceed with bringing forth viable declaratory relief and bad faith claims against excess insurers prior to the exhaustion of underlying insurance.[
2] A summary of the Court’s opinion is provided below.
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Kyle A. Rudolph, Saxe Doernberger & Vita, P.C.Mr. Rudolph may be contacted at
KRudolph@sdvlaw.com
Ownership and Licensing in Design Agreements
April 14, 2026 —
Abby Dvorkin - Snell & WilmerThe ownership and licensing of design documents in professional services agreements play a significant role in protecting the interests of the design professional and the project owner during and after project completion. The ownership or licensing of the drawings provision typically outlines who owns the drawings and specifications, who can use the documents, and how the documents can be used during and after the project.
Project owners and developers should understand that payment for design services does not automatically transfer ownership or an exclusive right to use the professional design. Under U.S. copyright law, the default rule is that the design professional retains ownership of the instruments of service absent a contractual provision transferring ownership or a license. See 17 U.S.C. § 101, et seq. The Architectural Works Copyright Protection Act provides that copyright protection applies to “pictorial, graphic and sculptural works” and includes “architectural works.” 17 U.S.C. § 102. A design professional may only transfer copyright ownership in writing. 17 U.S.C. § 204(a).
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Abby Dvorkin, Snell & WilmerMs. Dvorkin may be contacted at
advorkin@swlaw.com
