Emerging Issues in Construction CGL Insurance Part 2: The Separation of Insureds and Additional Insured Interests
September 29, 2026 —
Eric M. Clarkson - SDV FenchurchMany coverage disputes hinge on first principles—the fundamentals of insurance —rather than the minutiae. Unfortunately, the basic anatomy of insurance policies can get lost sometimes when parties are laser-focused on a particular term or set of circumstances. This is true not just in disputes, but also when writing coverage. One of the fundamentals that is commonly misunderstood and overlooked—but which is absolutely critical to the intended operation of insurance coverage—is what is commonly known as the “separation of insureds.”
The “separation of insureds” is the concept that each “insured” under a policy are referred to and treated differently, and most of all that the distinctions matter. The concept is usually included as a condition in the policy. It embodies the requirement that the policy applies to each insured distinctly from how it applies to other insureds. The ISO Form CGL policies specifically state that they apply “[s]eparately to each insured against whom a claim is made or ‘suit’ is brought.” The separate and distinct treatment of insureds is more critical in construction operations than anywhere else. This distinction is essential to ensure coverage works as intended, especially when contracted operations are involved, because the policy must insure the subcontractor that purchased the policy, the general contractor who hired the subcontractor, and the owner that hired the general contractor. Even small modifications can easily frustrate the intent of the parties.
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Eric M. Clarkson, SDV FenchurchMr. Clarkson may be contacted at
eric.clarkson@sdvfenchurch.us
Real Estate & Construction News Roundup (6/24/26) – HUD to Fund AI Grants, Luxury Hotel Deal Investment Activity to Surge, ESPCs to Fund Energy and Infrastructure Improvements
July 06, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, data centers are exposed to climate change, commercial tenant sues CoStar, cities see opportunities in emerging sports markets, and more!
- With deferred maintenance growing and capital dollars stretched thin, local governments are using ESPCs to fund energy and infrastructure improvements through future operational savings. (Vicky Uhland, Construction Dive)
- The U.S. Department of Housing and Urban Development is offering up to $3 million in grants for local governments to deploy automated permitting and building code systems. (Ryan Kushner, Construction Dive)
- Luxury hotel deals are set to see a surge in investment activity due to strong fundamentals and strengthening capital markets. (Noor Adatia, Hotel Dive)
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Pillsbury's Construction & Real Estate Law Team
New Executive Order on AI Innovation and Security: Key Takeaways for the Construction Industry
June 15, 2026 —
Richard R. Volack & Denis Serkin - Peckar & Abramson, PCOn June 2, 2026, President Trump signed an Executive Order titled “Promoting Advanced Artificial Intelligence Innovation and Security.” At its core, the Order is a cybersecurity and national-security measure rather than a broad regulation of how private companies develop or use AI. It directs federal agencies to harden government systems against AI-enabled cyber threats, establishes voluntary frameworks for collaboration between the federal government and the AI and critical-infrastructure sectors, and strengthens criminal enforcement against the malicious use of AI.
Notably, the Order expressly disclaims any intent to create a “mandatory governmental licensing, preclearance, or permitting” regime for the “development, publication, release, or distribution of new AI models.” Instead, the Executive Order seeks to “promote AI innovation and security” by working with the private sector to modernize government and private-sector information systems and harden them against external threats, protect intellectual property from exploitation or theft, and cultivate American AI capabilities.
Reprinted courtesy of
Richard R. Volack, Peckar & Abramson, PC and
Denis Serkin, Peckar & Abramson, PC
Mr. Volack may be contacted at rvolack@pecklaw.com
Mr. Serkin may be contacted at dserkin@pecklaw.com
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RONI: What You Lose by Not Investing in AI – With Sam Zolfagharian
September 21, 2026 —
Aarni Heiskanen - AEC BusinessSam Zolfagharian returns to the AEC Business Podcast for her second appearance. She is an AI strategist, keynote speaker, and the author of two books, Disrupt It and Future by Design. She spoke at the AI in AEC conference in Helsinki in March, and we picked up the conversation where that keynote left off.
The starting point was a question her clients keep raising. Executives are being asked by their boards about the return on their AI investments, and many of them do not have an answer they trust. This episode is about what to measure instead, and when the dollar figure finally becomes the right number to look at.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Achieving Sustainability Through Design-Build Delivery: Part I – An Overview
September 21, 2026 —
Joshua M. Pruett, Jennifer L. Harris & Tiffany A. Harrod - Peckar & Abramson, P.C.This article was written for the AGC’s Law in Brief and first appeared here.
Sustainability is no longer optional. What was once a matter of public policy or corporate preference has become a regulatory mandate and is reshaping how construction projects are designed, built, and operated. This mandate is not solely figurative. Rather, states have started to follow Europe’s lead by beginning to codify sustainability requirements into regulations and law. California led the charge by adding mandatory embodied-carbon emissions regulations into CALGreen, and other states, such as New York, have introduced bills to implement similar requirements. Owners, designers, and builders must now treat sustainability not as aspirational, but as a clearly defined contract issue from the outset, particularly where the project is expected to achieve a third-party rating, meet energy or resiliency targets, qualify for incentives, or comply with evolving green building codes.
In the federal public sector, construction contracts include a layered compliance framework—executive order-inspired policy, FAR-mandated clauses, and enduring statutory requirements—requiring contractors to integrate sustainability into design, material selection, and lifecycle management. Staying ahead means aligning with regulatory standards, conducting life-cycle cost analyses, and embedding sustainability into every procurement and construction decision.
Reprinted courtesy of
Joshua M. Pruett, Peckar & Abramson, P.C.,
Jennifer L. Harris, Peckar & Abramson, P.C. and
Tiffany A. Harrod, Peckar & Abramson, P.C.
Mr. Pruett may be contacted at jpruett@pecklaw.com
Ms. Harris may be contacted at jharris@pecklaw.com
Ms. Harrod may be contacted at tharrod@pecklaw.com
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Nationwide Preliminary Injunction Ordering Department of Defense to Resume Review of Wind Energy Projects
September 21, 2026 —
Victor J. Roehm III, Christopher P. Colyer & Sara M. Ajeti - Snell & WilmerOn August 6, 2026, the U.S. District Court for the District of Oregon granted a preliminary injunction in Renewable Northwest v. Hegseth, Case No. 3:26-cv-01092-IM, ordering the Department of Defense (DoD) to resume processing wind energy project applications under the existing statutory and regulatory framework and staying DoD’s review freeze pending final adjudication on the merits.
Background
In 2011, Congress created the Military Aviation and Installation Assurance Siting Clearinghouse (Clearinghouse) within DoD to review wind energy projects that might affect military operations. When a wind project developer files an application with the Federal Aviation Administration (FAA), the FAA refers it to DoD to determine whether the project poses an “unacceptable risk to the national security.”
Reprinted courtesy of
Victor J. Roehm III, Snell & Wilmer,
Christopher P. Colyer, Snell & Wilmer and
Sara M. Ajeti, Snell & Wilmer
Mr. Roehm may be contacted at vroehm@swlaw.com
Mr. Colyer may be contacted at ccolyer@swlaw.com
Ms. Ajeti may be contacted at sajeti@swlaw.com
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Integration Can Inoculate in Utah
July 20, 2026 —
Mark O. Morris - Snell & WilmerThe Utah Court of Appeals recently reaffirmed, in the construction context, Utah’s strict approach to enforcing integration clauses to preclude parol evidence and other legal theories that would vary the written terms of a contract. In Reid v. All Surface LC, 2025 UT App 134, decided last September, the court affirmed in all respects the trial court’s grant of summary judgment based on the strength of an integration clause against a homeowner who sued a contractor for breach of contract, breach of the covenant of good faith and fair dealing, fraud, negligent misrepresentation, civil conspiracy, negligence, and breach of the implied warranty of habitability. More recently, however, the same court rejected those same arguments in Tidwell v. Jensen, 2026 UT App 13 as to tort claims arising from a used car sale.
The facts in Reid were sympathetic to the plaintiff. After being told she had a mold issue near a defective basement shower, the plaintiff solicited bids. A remediation contractor advised that while it could address the mold, the shower replacement should be handled by someone else. The plaintiff contacted All Surface LC, a shower replacement contractor. During an interview, the sales representative stated that All Surface could “do full mold remediation, tear everything out, and reframe the shower.” The plaintiff ultimately retained All Surface, expecting it would both resolve the mold issues and replace the shower.
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Mark O. Morris, Snell & WilmerMr. Morris may be contacted at
mmorris@swlaw.com
Communication Gaps Can Cost Construction Firms in the Data Center Boom
June 02, 2026 —
Mike Lewis - Construction ExecutiveThe
data center construction boom is transforming the construction industry at a historic pace. Fueled by cloud computing, artificial intelligence and relentless demand for digital infrastructure, data centers have become one of the fastest-growing project types in the built environment. Billions of dollars are flowing into new facilities and expansions, creating unprecedented opportunities for construction firms positioned to deliver reliably.
But opportunity alone does not guarantee success. As competition intensifies, communication failures and poor information management are emerging as some of the most common (and costly) reasons firms lose margins, miss deadlines or fail to secure repeat work. In data center construction, where schedules are compressed and tolerance for error is minimal, even small breakdowns in communication can have outsized consequences.
Reprinted courtesy of
Mike Lewis, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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