Bona Fide Dispute Defeats Violation of Prompt Payment Act
June 15, 2026 —
David Adelstein - Florida Construction Legal UpdatesMost, if not all, jurisdictions, including the federal government, have what is known as a “Prompt Payment Act.” The objective is to ensure prompt payment. If prompt payment is not made, the Prompt Payment Act provides for interest penalties, as well as potentially other costs such as attorney’s fees.
But the thing is, it’s not as simple as untimely payment to support the recourse and interest penalties the applicable Prompt Payment Act affords. And the teeth associated with the applicable Prompt Payment Act are not as sharp as perhaps the party claiming untimely payment prefers.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Agent Not Liable for Loss Given Insured’s Vague Instructions for Coverage
April 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court affirmed the district court’s grant of summary judgment to the insured’s agent because there was no breach of duty. Jon Van Order v. Hauk, et al., 2025 Ill. App. Unpub. LEXIS 2378 (Ill. Ct. App. Dec. 23, 2025).
The insured began renovating a vacant home in October 2018. He met with agent Joseph Hauk and explained the property was vacant and would be going through renovations for the next several months. Hauk then procured a policy through Shelter Insurance Company insuring the vacant property against several specified perils. The policy provided coverage for water damage if “[t]he exterior of the building sustained a covered loss” and “that loss created an opening through which the water entered.” Damage caused by escaping water from within a plumbing system was excluded if: (1) the damage was caused by a “continuous or repeated leakage over a period of fourteen days or more” or (2) the insured premises had been vacant for 30 consecutive days immediately preceding the loss.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
At the Intersection of Indemnity and Prevailing Wages
March 17, 2026 —
Garret Murai - California Construction Law BlogIn a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages.
The Nabors Case
In
Nabors Corporate Services, Inc. v. City of Long Beach, 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands Oil Production Company and the City of Long Beach after it was found liable in a class action lawsuit for failing to pay prevailing wages to its employees. Nabors’ contract with Tidelands did not require the payment of prevailing wages and neither Tidelands nor the City believed that the project, which involved “oil well plug and abandonment” work, required the payment of prevailing wages.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Supreme Court Rules Tariffs Unconstitutional: Why the Construction Industry Shouldn’t Expect Calm Just Yet
March 31, 2026 —
Christopher Barnett - Construction ExecutiveThe U.S. Supreme Court’s 6–3 decision in Learning Resources, Inc. v. Trump did what many expected: It held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. What few anticipated was the speed of what followed: Within hours of the ruling, the administration announced replacement tariffs under Section 122 of the Trade Act of 1974, imposed a 10% global surcharge effective February 24, and signaled forthcoming Section 301 investigations against most major trading partners.
For those in the construction industry hoping the Learning Resources ruling would restore market stability, the message was unambiguous. The constitutional question may be settled, but the market disruption is not.
Reprinted courtesy of
Christopher Barnett, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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A Green Light for Housing? What Executive Order 14394 Means for Your Next Project
May 26, 2026 —
Bennett Houck, Miranda Martinez & Byron Sarhangian - Snell & WilmerOn March 13, 2026, President Trump signed Executive Order 14394, “Removing Regulatory Barriers to Affordable Home Construction” (the “Order”). The Order directs federal agencies to reduce regulatory burdens on residential development, streamline environmental permitting, and encourage state and local governments to adopt housing-friendly policies.
The Order includes several key provisions that developers and homebuilders should be aware of moving forward.
Key Provisions
The Order targets four main areas:
1. Federal Environmental Regulations
First, it directs the Secretary of the Army and Environmental Protection Agency (EPA) to revise permitting standards, including stormwater permits, wetlands permits under Section 404 of the Clean Water Act, and related construction-site requirements. The Order also targets energy-efficiency mandates for U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) financed housing. For developers and homebuilders, these revisions could reduce project delays and compliance costs associated with stormwater management, wetlands mitigation, and energy-efficiency upgrades, expenses that often add significant time and cost to residential development projects.
Reprinted courtesy of
Bennett Houck, Snell & Wilmer,
Miranda Martinez, Snell & Wilmer and
Byron Sarhangian, Snell & Wilmer
Mr. Houck may be contacted at bhouck@swlaw.com
Ms. Martinez may be contacted at mimartinez@swlaw.com
Mr. Sarhangian may be contacted at bsarhangian@swlaw.com
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2026 Construction Outlook: Dampening Outlook With Some Potential Bright Spots
February 17, 2026 —
Garret Murai - California Construction Law BlogAccording to Dodge Construction Network’s Outlook 2026 Ebook, “the construction industry came roaring into 2025” – with large government investments through the Infrastructure Bill and the CHIPS Act (promoting investment in the domestic semiconductor industry), as well as outsized spending on data centers to support cloud and AI technology – but “throttled back significantly” due to “rapid changes to economic and fiscal policies.”
These changes include short-term cost impacts due to tariffs and labor impacts due to the federal government’s immigration crackdown and long-term concerns following enactment of the One Big Beautiful Bill (OBBBA) which is anticipated to add $3.4 trillion to the federal deficit over ten years.
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Garret Murai, NomosMr. Murai may be contacted at
gmurai@nomosllp.com
How AI Turns Construction Documents Into Procurement Intelligence
May 05, 2026 —
Aarni Heiskanen - AEC BusinessMEP equipment accounts for up to 40% of costs on data center or hospital projects, has lead times ranging from 20 weeks to over a year, and has historically been the most underserved area in construction software. In
this episode, I speak with Victor Muchiri from BuildVision about what it actually takes to make AI useful in construction procurement, not as a pilot, but in production.
We dig into why you cannot simply upload a set of construction drawings to ChatGPT and trust the output. Construction documents are complex, cross-referenced, and consequential. Without deep domain context, such as manufacturer ontologies, equipment taxonomies, and engineering expertise, AI produces plausible results, not reliable ones. BuildVision’s approach is to act as a harness around AI models, wrapping them in construction-specific knowledge so the output can be trusted for real procurement decisions.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Fourth Circuit Extends Coverage to Contractor
May 14, 2026 —
Hunton Insurance Recovery BlogThe Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured.
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Hunton Andrews Kurth LLP