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The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues

August 03, 2026 — William L. Porter - Porter Law Group
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction. Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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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 Blog
The 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 Read the full story...

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Structural Engineer Claims Reinforcement Was Never Installed on Troubled NYC Tower

September 01, 2026 — Bryan Gottlieb - Engineering News-Record
New York City has expanded its investigation into the structural failure at the former Pfizer headquarters tower in Midtown Manhattan as the Dept. of Investigation confirmed a parallel inquiry and the Dept. of Buildings directed the property owner to retain third-party engineering oversight. Read the full story...
Reprinted courtesy of Bryan Gottlieb, Engineering News-Record
Mr. Gottlieb may be contacted at gottliebb@enr.com

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How Mobile Tools Are Capturing Safety Data on Jobsites

April 08, 2026 — Michael Bruns - Construction Executive
Traditionally, construction safety management is “reactive compliance”—reporting on an incident, filling out a form on paper or electronically, taking a picture and filing it away for compliance purposes. Safety management is shifting from reactive to proactive. Forward-thinking companies are using data and leading indicators to identify risks before incidents happen, not just document injuries after the fact. Mobile tools have completely changed the way safety operations work on construction sites, enabling that transition to proactive safety management. Reprinted courtesy of Michael Bruns, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Denis Serkin and Michael S. Zicherman Co-Edit/Author Lexology Panoramic: Construction 2027

August 03, 2026 — Denis Serkin & Michael S. Zicherman - Peckar & Abramson, P.C.
P&A partners Denis Serkin and Michael S. Zicherman served as co-editors and authors of Lexology’s Panoramic: Construction 2027 – US and Global guide. Formerly Getting the Deal Through, Lexology Panoramic provides members of the construction industry and construction-related legal and business providers with side-by-side comparison of key industry issues in 19 jurisdictions worldwide. Reprinted courtesy of Denis Serkin, Peckar & Abramson, P.C. and Michael S. Zicherman, Peckar & Abramson, P.C. Mr. Serkin may be contacted at dserkin@pecklaw.com Mr. Zicherman may be contacted at mzicherman@pecklaw.com Read the full story...

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Arizona Supreme Court Clarifies Parties’ Post-Default Conduct Cannot Validate Void Default Orders

August 24, 2026 — Joseph Kanefield, Ryan P. Hogan & Lilly M. Geiler - Snell & Wilmer
After filing a lawsuit, the first step is always serving process on the opposing party. While that preliminary step sounds basic enough, in McMahan v. Grasshopper, the Arizona Supreme Court recently provided a helpful refresher on the nuances of the service requirement and its importance in litigation for plaintiffs and defendants alike.1 Background McMahan arose from a hit-and-run where a tractor-trailer collided with safety barricades and injured a construction worker. The construction worker sued the tractor-trailer company, and he attempted to serve the company by leaving a copy of the complaint with the assistant to the company’s statutory agent who forwarded the complaint to the company. The assistant, however, was not authorized to accept service on the company’s behalf. Before the company appeared in the action, the construction worker successfully obtained an entry of default. Reprinted courtesy of Joseph Kanefield, Snell & Wilmer, Ryan P. Hogan, Snell & Wilmer and Lilly M. Geiler, Snell & Wilmer Mr. Kanefield may be contacted at jkanefield@swlaw.com Mr. Hogan may be contacted at rhogan@swlaw.com Ms. Geiler may be contacted at lgeiler@swlaw.com Read the full story...

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Insured’s Bad Faith Claim Survives Summary Judgment

July 13, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026). Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the deductible. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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HDR Agreed to $12M Settlement With Miami Bridge Design-Build Team

May 12, 2026 — Richard Korman - Engineering News-Record
HDR 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-Record
Mr. Korman may be contacted at kormanr@enr.com

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