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.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Enacts Change Order Fair Payment Act
March 24, 2026 —
Michael J. Baker - Snell & WilmerFor private works construction contracts entered on or after January 1, 2026, recent legislation establishes a claims and dispute resolution process for change orders. The law is codified at Civil Code § 8850. A synopsis of the pertinent provisions includes the following:
- Submitting a Claim. Contractors or subcontractors must submit a detailed, documented claim when requesting additional time or payment.
- Owner’s Response Time. The owner must meet and confer within thirty (30) days after receiving the claim. Within ten (10) days of meeting, the owner must provide a written statement identifying which portions of the claim are undisputed and which are disputed. An owner’s failure to respond is treated as disputing the entire claim.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com
Celebrating Freedom: The Overlooked Freedom to Contract in Commercial Insurance
July 20, 2026 —
Michael S. Levine & Andrea DeField - Hunton Insurance Recovery BlogHappy 4th and 250 years of freedom . . . to contract!
Many policyholders assume insurance policies are “standard” and must be accepted as-is. That assumption is often wrong—and dangerously limiting. Unlike many consumer insurance markets, the commercial insurance realm preserves a robust “freedom to contract,” allowing sophisticated policyholders to negotiate terms, exclusions, definitions, and limits before a policy is even issued. Particularly in recent years, high-profile disputes over cyber coverage, business interruption, and war/cyber exclusions have shown not just what happens when coverage is denied, but what could have been done up front to avoid those fights.
This post highlights the power policyholders still hold in the negotiation process and illustrates, with concrete examples from recent media-covered disputes, how that freedom can be strategically used.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth LLP and
Andrea DeField, Hunton Andrews Kurth LLP
Mr. Levine may be contacted at mlevine@hunton.com
Ms. DeField may be contacted at adefield@hunton.com
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NJ Public Works Contractors Beware – Pay Special Attention When Submitting Your Public Works Contractor Registration
May 26, 2026 —
Levi W. Barrett & Aaron C. Schlesinger - Peckar & Abramson, P.C.While it is always important to be careful when making submissions to government agencies, recent activity by the New Jersey Department of Labor and Workforce Development (“NJDOL”) reveals considerably increased scrutiny in connection with contractors renewing their New Jersey Public Works Registration. Extra care when completing the registration renewal process is warranted, because the consequences of a misstep can be significant and disruptive.
The New Jersey Public Works Contractor Registration Act requires all contractors bidding on or engaging in construction-related public works projects to register with the NJDOL. This registration, which must be resubmitted every 1-2 years, requires contractors to make a number of detailed disclosures relating to, among other things, the entity’s ownership structure, prior state and federal labor law violations, details regarding interests in other businesses, unlawful acts by owners/officers, and participation in apprenticeship programs.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C. and
Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
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When Your Scheduler Hallucinates: Managing AI Risk on the Job Site
March 03, 2026 —
Jason Loring - ConsensusDocsArtificial intelligence has moved from the conference room to the construction site. Contractors are using AI-powered tools to predict schedule delays, monitor safety through drone footage, optimize equipment maintenance and flag potential hazards in real time. These tools deliver genuine efficiency gains, but they also introduce risks that most construction contracts do not anticipate and many project teams aren’t yet equipped to manage.
The problem is that AI tools are probabilistic and not determinative, meaning that they can “hallucinate”: generating confident, but completely wrong, information. Your AI scheduling software might therefore predict a delay that never materializes, causing unnecessary resource mobilization. Your drone monitoring might flag a nonexistent safety hazard, stopping work and costing productivity. Or worse, it might miss a real hazard entirely.
Read the full story...Reprinted courtesy of
Jason Loring, Jones Walker LLPMr. Loring may be contacted at
jloring@joneswalker.com
New Report Outlines Roadmap for Construction Jobsites to Cut Carbon Emissions by 2040
April 20, 2026 —
PCL ConstructionDenver, Colo., April 16, 2026 (GLOBE NEWSWIRE) -- A new industry report outlines five practical steps that, when implemented together, could reduce construction jobsite emissions by up to 75% without compromising cost, schedule or performance. Grounded in real operational data from 617 construction projects across the U.S. and Canada, Growing and Greening Canadian Construction represents the most comprehensive sector-wide analysis of jobsite emissions conducted to date.
The report was developed through a collaboration among leading general contractors, including
PCL Construction, in partnership with the Transition Accelerator, an organization that drives projects, partnerships, and strategies to promote economic competitiveness in a carbon‑neutral world. The report focuses specifically on emissions from construction jobsite activities and reflects a shared commitment to advancing practical, scalable solutions for the industry.
About PCL Construction
PCL is a group of independent construction companies that operates throughout the United States, Canada, the Caribbean and Australia. As one of the largest contracting organizations in North America, PCL completes more than $9.9 billion USD in work annually, building projects that shape communities. The company’s 100% employee ownership model fuels a culture of commitment for clients in the buildings, civil infrastructure, heavy industrial and solar markets. With a strategic presence in more than 30 major centers, PCL’s leadership teams consistently drive innovation and set new benchmarks for excellence, bringing unparalleled skill to every project. Watch us build at PCL.com.
About the Transition Accelerator
The Transition Accelerator works with 300+ partner organizations across Canada to build out pathways to a prosperous low-carbon economy and avoid costly dead-ends along the way. We help governments and industry harness the global shift towards clean growth to secure permanent jobs, abundant energy, and strong regional economies across the country. By connecting systems-level thinking with real-world analysis, we’re enabling a more affordable, competitive, and resilient future.
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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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Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
