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DIRECTORY AND CAPABILITIES

Meaningful Change to Contractors License Law Disgorgement Rule of Business and Professions Code Section 7031

November 02, 2026 — Garret Mandel - Porter Law Group
California Business and Professions Code section 7031 has historically imposed a severe and unforgiving penalty on any licensed contractor or subcontractor (“licensee”) performing any construction work after its contractor’s license becomes suspended or is revoked. The penalty for many years has been a prohibition against the licensee bringing an action to collect payment owed and a draconian penalty allowing the party who paid the licensee to recover, or cause the licensee to “disgorge,” any payment the licensee received for the entire contract. This strict penalty could apply to funds received for the entire contract even when the license was suspended or revoked for only a short period of time during the project. This meant, for example, that a licensee who was paid $10 million under a contract for a project that took a year to build could have to disgorge the entire $10 million it received under that contract as a result of performing work while its license was suspended for only a week of the entire project duration. Draconian indeed. A limited statutory substantial-compliance exemption could provide relief, but it requires a court determination that the statutory conditions have been met. Beginning on January 1, 2027, the licensee will be thrown a lifeline on this issue. Under California Senate Bill 342, becoming effective on January 1, 2027, California contractors on qualifying projects will no longer face the same severe penalties – but there are limitations. Read the full story...
Reprinted courtesy of Garret Mandel, Porter Law Group
Mr. Mandel may be contacted at gmandel@porterlaw.com

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Wilke Fleury is proud to congratulate attorneys recognized in the 2027 editions of The Best Lawyers in America® and Best Lawyers: Ones to Watch® in America.

September 15, 2026 — Wilke Fleury
The Best Lawyers in America®: Dan Egan, Daniel Foster, David Frenznick, and George Guthrie. Best Lawyers: Ones to Watch® in America: Islam M. Ahmad, Kathryne Baldwin, Melissa Eaton, Jason Eldred, and Mustafa Karim. Congratulations to this outstanding group! Read the full story...
Reprinted courtesy of Wilke Fleury

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Surety Requiring Collateral Security Under General Agreement of Indemnity

September 08, 2026 — David Adelstein - Florida Construction Legal Updates
In order to procure bonds (payment and performance bonds), you need to sign a General Agreement of Indemnity (referred to as the “GAI”) with the surety (bonding company). It does not matter the surety issuing the bonds, the terms and conditions in the General Agreement of Indemnity are largely consistent. These terms and conditions are one-sided written in favor of the surety. This is because bonds are not insurance. When a surety issues such bonds, it is doing so under the premise that it will get reimbursed every penny that it incurs relative to its exposure- whether incurred in attorney’s fees, consulting costs, or remediating a default or claim under the applicable bond. The General Agreement of Indemnity is one of the most powerful contracts in construction and is a contract that is not to be taken lightly. It provides the surety numerous rights in the event of a claim. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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The Grenfell & Champlain Towers: Risk Management Considerations in the Wake of Catastrophic Loss — A UK/US Comparison

June 02, 2026 — Eric M. Clarkson - Saxe Doernberger & Vita, P.C.
1. Introduction As part of the multinational collaborative relationship between Saxe Doernberger & Vita, P.C. and Fenchurch Law, we continually find ourselves in conversations about the sometimes subtle but sometimes drastic differences between risk management and coverage considerations from one country to the next. These differences are often highlighted by the fallout from large catastrophic losses that are widely publicized and illuminate sometimes widespread risks and perils that many others may be facing in the coming years. The response of governments and their subdivisions to the needs of victims and/or commercial parties, and insurance markets’ evaluation of and reactions to catastrophic losses vary widely from country to country and jurisdiction. In this article, we discuss these responses and reactions in the cases of the Grenfell Tower Fire in London, England, and the Champlain Tower collapse in Surfside, Florida, within the United States. These two widely publicized losses involved different risk management and insurance considerations based on where they occurred. They also saw substantially different government responses and raised varied questions about what the next steps are for their respective commercial and insurance markets. Read the full story...
Reprinted courtesy of Eric M. Clarkson, Saxe Doernberger & Vita, P.C.
Mr. Clarkson may be contacted at EClarkson@sdvlaw.com

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Mark Cronenwett Obtains Appellate Ruling Vacating Default Judgment Against Mortgage Lender Client

October 12, 2026 — Lewis Brisbois
Dallas Partner Mark Cronenwett recently secured a decision from the Dallas Court of Appeals that vacated a default judgment against his mortgage lender client, on the grounds that the client was never properly served with the complaint. In prior litigation, a real property investor purchased a Texas residential property for pennies on the dollar at an HOA foreclosure sale. That investor then filed a frivolous lawsuit against Lewis Brisbois' mortgage-lender client to invalidate its lien, contending that mortgage lender had abandoned the debt because it failed to respond to the investor’s alleged requests for information about the amounts owed on the loan. Read the full story...
Reprinted courtesy of Lewis Brisbois

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How Engineers Will Determine Why NYC's Pfizer HQ Conversion Buckled

July 13, 2026 — Bryan Gottlieb - Engineering News-Record
Construction crews have stabilized the former Pfizer headquarters redevelopment in Midtown Manhattan after two load-bearing structural columns buckled on the 21st floor July 7. The focus has now shifted from emergency response to determining what caused the office-to-residential conversion to suffer a major structural failure. 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 AEC Firms Move AI Beyond the Pilot

July 27, 2026 — Aarni Heiskanen - AEC Business
Most AEC firms can run an AI pilot, but few can scale it. Enthusiasm for a first experiment rarely extends beyond the pilot team, leaving the pilot as an isolated win that never changes how the company works. In a recent AEC Business Podcast episode, Adeline Chan, CEO and co-founder of Hong Kong-based AAL Innovation, explained why that gap exists and what separates the firms that close it from those that stall. The Pilot Mindset that Holds Construction Back Adeline draws a sharp contrast between finance and construction. Banks cannot afford to fall behind their competitors, so they pilot constantly, sometimes running hundreds of proof-of-concept teams in parallel and letting them compete internally to identify the approach that works. The winning concept becomes the standard and scales across the organization, and the return on investment is measured in undeniable numbers. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Could Your Project-Level AI Prompt Become the Other Side’s Smoking Gun?

October 20, 2026 — Ryan Glass - ConsensusDocs
A dispute is brewing on the project. Wanting a quick assessment, the project manager opens ChatGPT, Claude, or another generative artificial intelligence (“AI”) platform. The project manager types the dispute background into the prompt, including concerns, explanations, and a frank discussion of what may have gone wrong on the contractor-side. The AI response identifies potential weaknesses in the contractor’s position, including possible failures to meet contractual obligations. Unhappy with the answer, the project manager starts a new chat, revises the prompt, and tries again. If the dispute escalates to arbitration or litigation, can the owner force the contractor to provide these prompts and the resulting responses? Frustratingly, the answer is: it depends. Courts have reached different conclusions. For now, the safest course is to involve your counsel before using AI to evaluate a demand letter, default notice, or threatened lawsuit, or before using AI to draft dispute-related emails, claim letters, or other communications that contain project-specific facts. Otherwise, what feels like a private conversation may later become key evidence for the opposing party. Read the full story...
Reprinted courtesy of Ryan Glass, Jones Walker LLC
Mr. Glass may be contacted at rglass@joneswalker.com

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