New York Amends Prompt Payment Act: Retainage Above 5% in Private Construction Contracts Now Void
February 10, 2026 —
Mark A. Snyder, Levi W. Barrett, Patrick T. Murray & Skyler L. Santomartino - Peckar & Abramson, P.C.In 2023 New York overhauled its Prompt Payment Act. The
2023 amendments, largely aimed at restricting the amount of retainage that can be withheld on private projects, were unclear about whether parties could contract around the statute, as they can with other provisions of the statute. The State Legislature recently clarified that issue.
On December 19, 2025, New York enacted a new law, tightening the State’s Prompt Payment Act retainage laws by amending the Prompt Payment Act under General Business Law § 757. Under § 757, the new law renders void any contract provision in private construction contracts that requires retainage in excess of 5% of the total contract sum, meaning owners cannot hold more than 5% from their prime contractors and prime contractors cannot hold more than 5% from their subcontractors.
Reprinted courtesy of
Mark A. Snyder, Peckar & Abramson, P.C.,
Levi W. Barrett, Peckar & Abramson, P.C.,
Patrick T. Murray, Peckar & Abramson, P.C. and
Skyler L. Santomartino, Peckar & Abramson, P.C.
Mr. Snyder may be contacted at msnyder@pecklaw.com
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Murray may be contacted at pmurray@pecklaw.com
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com
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FERC Issues Show-Cause Orders: Impacts on California and Other Regional Power Markets
July 13, 2026 —
Stephen J. Humes, Alicia M. McKnight & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law BlogAt an open meeting on June 18, 2026, the Federal Energy Regulatory Commission (FERC) issued show-cause orders under Section 206 of the Federal Power Act to the six FERC-jurisdictional RTOs/ISOs—PJM Interconnection, ISO New England, Midcontinent Independent System Operator, Southwest Power Pool, New York Independent System Operator and California Independent System Operator—along with their transmission owners (TOs), directing each region and the TOs to justify or revise tariff provisions governing how data centers and other large loads connect to and receive transmission service from the grid. These show-cause orders will impact several power markets across the country, including California.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury and
Jason Drogin Atwood, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
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Seventh Circuit Finds “Additional Insured” Requirements Met Where Non-Party Subcontractor Was Proximate Cause of Underlying Injuries
February 23, 2026 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Atlanta Gas Light Company et al v. Navigators Ins. Co., Nos. 24-2888 & 24-2889 (7th Cir. Jan. 22, 2026), the Seventh Circuit Court of Appeals assessed whether an upstream contractor was an “additional insured” under an umbrella policy issued to its subcontractor. Atlanta Gas and Southern Company Gas (“AGL”) hired United States Infrastructure Corporation (“USIC”) to locate and mark gas lines that AGL owned throughout Georgia. In 2018, USIC failed to mark a gas line in Homerville, Georgia, and a boring company struck it, leading to an explosion that severely injured three women. The victims settled their claims with USIC but did not come to terms with AGL. AGL eventually did settle with the victims, but only after they sued AGL in Georgia state court (the “Underlying Suits”). AGL’s service agreement with USIC required USIC to obtain primary and excess liability insurance coverage that included AGL as an additional insured. Because USIC’s settlement with the victims exhausted its primary policy, AGL tendered the defense and indemnification of the Underlying Suits to USIC’s excess insurer, Navigators. Navigators denied the request on the ground that AGL was not an “additional insured” under the policy.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Water Reuse Emerges as a Critical Strategy for Data Center Development
June 22, 2026 —
Ashleigh Myers, Jillian Marullo & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law BlogAs demand for data centers continues to accelerate, water availability is emerging as a critical factor in project development and long-term operations. Although power supply and transmission access have historically dominated siting discussions, increasing water constraints in many regions are placing greater focus on the substantial volumes of water required to support data center cooling systems. As we
covered previously, data centers are frequently located in areas already experiencing water stress and require substantial volumes of water to operate—roughly 228 billion gallons in 2023 in the United States alone—with water use projected to
increase by up to 170% by 2030.
Alternative cooling options, such as free-air cooling or mechanical chillers, can reduce direct water consumption but introduce their own tradeoffs. Free-air cooling is climate-dependent and often ineffective in hotter regions, while mechanical chillers increase energy demand, potentially shifting water consumption upstream through increased electricity generation.
Reprinted courtesy of
Ashleigh Myers, Pillsbury,
Jillian Marullo, Pillsbury and
Jason Drogin Atwood, Pillsbury
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
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Contract Disputes Act and Jurisdictional Requirements
March 17, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen dealing with a claim on a federal construction project, there are a couple of key background jurisdictional points. These points were briefly highlighted in the recent appeal, Mega Star Logistics Service Co. v. Department of State, CBCA 8232, 2026 WL 253738 (CBCA 2026). Here are the two points.
FIRST, when it comes to jurisdiction, for a board of contract appeals “to exercise jurisdiction over a claim, the CDA [Contract Disputes Act] requires the contractor to submit a written claim to the contracting officer for a COFD [contracting officer final decision], with a subsequent appeal of the COFD or deemed denial if the CO [contracting officer] does not issue a COFD.” Thus, you need to submit a formal claim under the Contract Disputes Act to the contracting officer to get a final decision from the contracting officer (or the contracting officer waiving the final decision by not timely furnishing one). Mega Star Logistics, supra.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
HHMR Honored as a 2026 Denver Business Journal Best Places to Work Recipient
March 10, 2026 —
David McLain - Colorado Construction Litigation BlogWe are pleased to share that Higgins, Hopkins, McLain & Roswell has been named a 2026 Denver Business Journal Best Places to Work honoree, a recognition grounded entirely in direct feedback from our own team members.
The Denver Business Journal Best Places to Work program, in partnership with Quantum Workplace, ranks organizations based on anonymous employee engagement survey results that measure culture, leadership, communication, trust, team dynamics, and satisfaction. This year’s list includes 65 companies across the Denver metropolitan area, judged by the people who know these workplaces best: their employees.
Read the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Course of Construction Exclusions and the CGL Policy
July 20, 2026 —
Anna M. Perry, Rachel S. Kindseth & Nina Catanzaro - Saxe Doernberger & Vita, P.C.I. Course of Construction Exclusions
Course of Construction (“COC”) exclusions are found on General Liability and excess liability policies, typically a wrap-up or project specific policy, and generally exclude “all property damage occurring during the course of construction.” Insurers claim COC exclusions are not problematic because they are intended to prevent an overlap in coverage between the general liability policy and first-party property Builder’s Risk policy. However, because General Liability policies and Builder’s Risk policies provide coverage for different risks, COC exclusions can create a gap in coverage for owners and contractors. Therefore, any exclusion on a wrap-up or project specific policy that limits coverage for property damage liability should be scrutinized, and amendments sought when warranted and commercially achievable, for owners, developers and contractors because General Liability policies do not cover the same risk as that of a Builder’s Risk policy.
General liability policies provide defense and indemnity to the insured(s) for claims made by a third-party against the insured. Broad COC exclusions serve to preclude coverage for all property damage, not just property damage to the insured project. This includes property damage to property other than the insured project, e.g. an adjacent property. On the other hand, Builder’s Risk policies provide first-party property coverage for direct physical loss to the project during the course of construction. The Builder’s Risk policy will not provide coverage for property other than the project itself (e.g., adjacent property) and it will not provide a defense or indemnity in the event the owner of the damaged property brings a claim against a potentially at-fault party.
Reprinted courtesy of
Anna M. Perry, Saxe Doernberger & Vita, P.C.,
Rachel S. Kindseth, Saxe Doernberger & Vita, P.C. and
Nina Catanzaro, Saxe Doernberger & Vita, P.C.
Ms. Perry may be contacted at APerry@sdvlaw.com
Ms. Kindseth may be contacted at rkindseth@sdvlaw.com
Ms. Catanzaro may be contacted at NCatanzaro@sdvlaw.com
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LA Fire Victims Can Pursue City Utility Claims, Judge Rules
March 10, 2026 —
Jef Feeley & Maxwell Adler - BloombergThe water and power utility that serves the city of Los Angeles must face hundreds of lawsuits faulting its response to the massive 2025 wildfire that leveled one of the city’s premier seaside neighborhoods and caused tens of billions of dollars in damage.
In a significant victory for fire victims, Los Angeles Superior Court Judge Samantha Jessner concluded in a
written ruling Thursday that a unique California law allows property and business owners to pursue claims that the Los Angeles Department of Water and Power failed to supply enough water to fight the blaze that consumed the Pacific Palisades area.
Over strong objections from lawyers for the nation’s largest public utility, Jessner finalized a tentative ruling she issued last week concluding victims have a legal basis to move forward with allegations a city reservoir drained for repairs left fire hydrants with inadequate water pressure and helped the wind-whipped blaze get out of control.
Reprinted courtesy of
Jef Feeley, Bloomberg and
Maxwell Adler, Bloomberg Read the full story...