Fixed Price, Fluid Quantities: The Hidden Risks in Lump Sum Agreements with Variable Units
November 21, 2025 —
Virginia Trunkes - Construction Law ZoneLump sum construction agreements are the most basic of the different design-bid-build options: the contractor agrees to complete the entire scope of work for a fixed price, and assumes most of the quantity and cost risks. If the contractor’s actual costs exceed its estimates, the contractor absorbs the loss. Adding a clause into the construction agreement that allows unit quantities to increase or decrease based on actual job quantities creates a mechanism that can reduce the risk of estimating, but it is a clause that should be carefully drafted and closely guarded.
There are times when it makes sense for parties to deviate from their lump sum agreement and allow for greater flexibility: when there are uncertainties in site conditions or scope, and/or to reduce disputes over changed conditions. The parties can introduce elements of unit-price contracts into the lump sum framework, either choosing to shift the risk entirely to one party or the other, or sharing the risk, e.g., by including an equitable adjustment clause that allows for a price adjustment if the variation exceeds a certain threshold. Even with that balance, incorporating opportunities for adjustments can favor more than just the contractor: it creates a disincentive for the contractor to inflate unit prices to hedge against quantity risks.
Read the full story...Reprinted courtesy of
Virginia Trunkes, Robinson & ColeMs. Trunkes may be contacted at
vtrunkes@rc.com
End of an (Endangerment) Era
February 23, 2026 —
Sukhmani K. Singh, Christopher P. Colyer & Sean M. Sherlock - Snell & WilmerOn February 12, 2026, the U.S. Environmental Protection Agency (EPA) announced the repeal of the 2009 Greenhouse Gas (GHG) Endangerment Finding and the elimination of all federal GHG emission standards for motor vehicles and engines.
1 The EPA characterized the action as the “single largest deregulatory action in U.S. history.”
2 This development marks a fundamental shift in federal climate policy under the Clean Air Act (CAA) and is expected to trigger immediate and extensive litigation.
In Massachusetts v. EPA, the U.S. Supreme Court held that GHGs qualify as “air pollutants” under the CAA and that the EPA must determine whether emissions from new motor vehicles cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare under CAA Section 202(a).
3 Following this decision, on December 7, 2009, the EPA issued two findings. First, the EPA classified six different GHGs as threatening public health and welfare. Second, the EPA determined that emissions from new motor vehicles contribute to that endangerment.
4 Although the findings themselves imposed no direct regulatory requirements, they served as the legal predicate for GHG emission standards for light-duty and heavy-duty vehicles, and later for other CAA programs affecting statutory sources. In 2012, the U.S. Circuit Court of Appeals for the District of Columbia upheld the Endangerment Finding and related regulations.
5
Reprinted courtesy of
Sukhmani K. Singh, Snell & Wilmer,
Christopher P. Colyer, Snell & Wilmer and
Sean M. Sherlock, Snell & Wilmer
Ms. Singh may be contacted at ssingh@swlaw.com
Mr. Colyer may be contacted at ccolyer@swlaw.com
Mr. Sherlock may be contacted at ssherlock@swlaw.com
Read the full story...
IEEPA Tariff Refunds: CBP Launches CAPE Process
April 27, 2026 —
David J. Creagan, Guido Antolini, Bruce W. MacLennan & Gary P. Biehn - White and Williams LLPOn April 20, 2026, U.S. Customs and Border Protection (CBP) launched the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment (ACE) portal to administer refunds of duties imposed under the International Emergency Economic Powers Act (IEEPA) through a streamlined electronic filing process.
Background
In February 2026, the U.S. Supreme Court held that certain tariffs imposed under IEEPA were unlawful. Subsequent proceedings before the U.S. Court of International Trade required CBP to develop a scalable refund process applicable not only to litigants but also to non-plaintiffs. According to CBP and court filings, approximately 330,000 importers paid or deposited an estimated $166 billion in IEEPA duties across more than 53 million entries. In response, CBP developed CAPE as an electronic, consolidated refund mechanism within ACE.
Reprinted courtesy of
David J. Creagan, White and Williams LLP,
Guido Antolini, White and Williams LLP,
Bruce W. MacLennan, White and Williams LLP and
Gary P. Biehn, White and Williams LLP
Mr. Creagan may be contacted at creagand@whiteandwilliams.com
Mr. Antolini may be contacted at antolinig@whiteandwilliams.com
Mr. MacLennan may be contacted at maclennanb@whiteandwilliams.com
Mr. Biehn may be contacted at biehng@whiteandwilliams.com
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New Executive Order Prohibits Federal Contractors from Engaging in DEI Through Employment and Procurement Activities
April 27, 2026 —
Laura De Santos & Monica Prieto - Gordon Rees Scully MansukhaniOn March 26, 2026, President Trump signed Executive Order 14398, entitled Addressing DEI Discrimination by Federal Contractors, requiring federal agencies to add contractual language in all federal contracts prohibiting contractors and subcontractors from engaging in any racially discriminatory DEI activities, as defined by the Executive Order (EO).
While this EO includes language similar to prior DEI-related orders, it introduces a significant expansion in enforcement by subjecting non-compliant contractors to liability under the False Claims Act (FCA), including exposure to whistleblower actions and qui tam litigation. A qui tam claim is a civil action by a private individual on behalf of the government alleging fraud against federal programs and seeking to recover damages.
The new EO states that involvement in any racially discriminatory DEI activities is not only unethical and illegal, but also deemed fraudulent against federal programs because it is material to the government’s payment decisions. The definition of DEI activities here matters, as this EO expands a contractor’s obligations beyond the management of its employment policies and includes prohibitions against funding or expending time or resources on DEI activities and contracting with subcontractors, vendors, or suppliers utilizing DEI programs.
Read the full story...Reprinted courtesy of
Laura De Santos, Gordon Rees Scully MansukhaniMs. De Santos may be contacted at
ldesantos@grsm.com
To Settle or Not Settle: Factors to Weigh and Practical Considerations
January 13, 2026 —
Gerard J. Onorata - ConsensusDocsDeciding to settle a construction dispute is often wrought with difficulty, requiring the decision maker to evaluate a number of factors. Nevertheless, there are no hard and fast rules that apply when advising a party whether or not they should settle a dispute. Yet the vast majority of construction disputes do settle before going to trial or arbitration. In fact, recent statistics show that approximately 95% of all civil cases, including construction disputes, settle before trial[1]. However, whether settlement is always the best choice depends on several factors to be discussed here.
Merits of Your Case
First and foremost are the merits of your claims and defenses against any claims that are asserted against you. Construction disputes are inherently fact sensitive, and the merits of a case are driven by the facts of the dispute. Simple breach of contract actions for balances of unpaid funds for the work and materials that have been provided and installed on a project make weighing the merits of the affirmative claim relatively simple. However, these types of “collection cases” stand in stark contrast to complex construction delay claims for equitable adjustment where there exist competing and numerous causes of the delays. In addition, there are complicated legal principles applicable to whether there is entitlement to compensation for the delay or simply an extension of time. Construction defect claims where technical engineering issues are involved also present a heightened level of complexity that may make such cases difficult to prove on the merits.
Read the full story...Reprinted courtesy of
Gerard J. Onorata, Peckar & Abramson, P.C.Mr. Onorata may be contacted at
gonorata@pecklaw.com
Seven Kahana Feld Attorneys Selected to 2025 New York Metro Super Lawyers Lists
November 18, 2025 —
Eva Paulson - Kahana FeldNEW YORK - Oct. 30, 2025 - Kahana Feld is pleased to announce that
Tim Capowski was included in the 2025 edition of New York Metro Super Lawyers and
Sean Harriton,
Rachael Marvin,
Sarah Pavlini,
Mariah Smith,
Christopher Theobalt, and
Sofya Uvaydov were included in New York Metro Rising Stars.
2025 New York Metro Super Lawyers
Tim Capowski was awarded for his work in Appellate Law. Capowski is a partner at Kahana Feld and chair of the firm’s National Appellate Litigation & Consulting Group. He has spent the better part of three decades at the forefront of the insurance defense bar. He has litigated hundreds of appeals and thousands of motions in state and federal and appellate courts throughout New York and around the country. He handles a variety of complex litigation including catastrophic property and casualty claims, construction defect, professional liability, labor and employment law, mass torts, insurance coverage, and more.
Read the full story...Reprinted courtesy of
Eva Paulson, Kahana FeldMs. Paulson may be contacted at
epaulson@kahanafeld.com
