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Real Estate & Construction News Roundup (8/5/26) – Data Centers Reshape Hotel Demand, AI Changes Construction Workflows and Global Tariffs Raise CRE Construction Costs

August 16, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, AI creates new real estate play for VCs, Wall Street sells more rental homes, builders capitalize on flood of water projects and more!

• Data center construction has the potential to be a significant opportunity for extended stay hotels in the near and long term, provided sustainable demand patterns exist within a given market. (Jenna Graber, Hotel Dive)
• Artificial intelligence doesn’t represent an “extinction event” for AEC firms, but it will fundamentally change the way construction pros streamline certain tasks. (Matthew Thibault, Construction Dive)
• With the 21st Century ROAD to Housing now law, there are a number of outstanding questions about implementation and compliance for multifamily pros. (Julie Strupp, Multifamily Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Are “Financial Hardship” Damages Recoverable?

June 08, 2026 — David Adelstein - Florida Construction Legal Updates
In a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president and his wife. Are these damages recoverable? Drumroll…The Board ruled that the contractor cannot recover such financial hardship damages. As it relates the personal financial hardship damages, the Board ruled, “Neither [the contractor’s] president nor his wife are a party to this contract, are in privity of contract with [the government], or are the beneficiaries under this contract. [The contractor], therefore, cannot recover for any losses that either one has suffered individually and that [the contractor] claimed in this appeal.” F.O.G., LLC, supra. 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 Firm Turns 16!

July 20, 2026 — Christopher G. Hill - Construction Law Musings
I have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks the 16th anniversary of my first day as a solo practitioner of construction law at The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 16 years without the support of the best wife and family that any construction lawyer could want. Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) has graduated from N. C. State University with a fisheries and wildlife biology degree and is currently in Casper, Wyoming working for Wyoming Game & Fish, my second oldest is an assistant director of admissions at Appalachian State University in Boone, NC, and has celebrated his second wedding anniversary, and my oldest has celebrated her fifth marriage anniversary. Our home in Captiva, Florida continues its recovery from from Hurricane Ian and subsequent hurricanes. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill

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Supply Chain Is a Legal Exposure—Not Just a Force Majeure Problem

September 08, 2026 — Owen Newman - Construction Executive
This is not another force majeure article. The supply-chain related legal exposure that contractors are carrying today—in sanctions risk, specification non-compliance, warranty exposure and regulatory volatility—extends well beyond what even a well-drafted force majeure clause protects. An engineering, procurement and construction contractor on a gas-fired power plant discovers during commissioning that transformer oil in a critical unit contains Russian-origin naphthenic base oil, which is a prohibited source under Office of Foreign Assets Control sanctions. The contractor didn’t source it. A subsupplier two tiers below made the substitution when disruptions in the Strait of Hormuz tightened the primary supply chain for this specialty product and no one in the purchase-order chain flagged it. The procurement decision is long done and the documentation trail that should have caught it doesn’t exist. Reprinted courtesy of Owen Newman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...
Mr. Newman may be contacted at oknewman@duanemorris.com

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Engineering Seals Versus Contracts ‘Under Seal’ (Two Very Different Things)

May 05, 2026 — Melissa Dewey Brumback - Construction Law in North Carolina
Recently, I was asked by a reader to explain the difference between a document that is ‘sealed’ by an engineer (or architect) and one that is signed ‘under seal’. This question prompted this post, as others may also be wondering about the distinction. [Hi Ed! Thanks for your question] Professionals have ‘seals’ that show that they are registered (Engineers) or licensed (Architects). As most of you likely know, your professional seal is something that is hard won and which is used when—and only when—your plans were made by you or someone under your direct supervisory control. Your signature represents that you were in responsible control over the documents, and that they have met the required professional standard of care. (21 NC Admin Code 2-0206 (a)(11)). Read the full story...
Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett PLLC
Ms. Brumback may be contacted at mbrumback@rl-law.com

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Four HHMR Attorneys Recognized in the 2027 Editions of Best Lawyers®

September 21, 2026 — Higgins, Hopkins, McLain & Roswell, LLC - Colorado Construction Litigation Blog
Higgins, Hopkins, McLain & Roswell, LLC is proud to announce that Best Lawyers® has recognized four HHMR attorneys in the 2027 editions of The Best Lawyers in America® and Best Lawyers: Ones to Watch® in America for their work in construction law and construction litigation. David M. McLain, Lisa Bondy Dunn, and Steven L. Heisdorffer earned recognition in the 2027 edition of The Best Lawyers in America®. Ricky L. Nolen, Jr. earned recognition in the 2027 edition of Best Lawyers: Ones to Watch® in America. For a firm that has deliberately focused its practice on construction law and construction litigation for nearly 25 years, we take particular pride in seeing that focus reflected in the recognition of lawyers across different generations of HHMR. Read the full story...
Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC

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What Is the Independent Tort Doctrine? New Case Explains…

August 24, 2026 — David Adelstein - Florida Construction Legal Updates
Florida’s Sixth District Court of Appeals in Atout v. HHM Land Trust Dated October 29, 2013, 51 Fla.L.Weekly D1569a (Fla. 6th DCA 2026) recently included an extensive discussion on Florida’s independent tort doctrine. The independent tort doctrine is an important legal doctrine, particularly when parties are in contractual privity. This doctrine stands for the proposition that tort claims must be independent of any breach of contract. See Atout, supra. The Sixth District’s extensive discussion analyzed the indicators to determine this “independence,” which may arise from the source of the duty, the asserted conduct, the damages sought, or even public policy: Unlike claims that rely on contractual relationships, an “independent” tort is often characterized by a duty imposed by law rather than by agreement. As to this consideration, United States District Court Judge Steven Merryday has explained that the independent tort doctrine honors the same divide as the economic loss rule, but rather than looking at the nature of the loss, it focuses on the source of the duty allegedly breached. “If a contract imposes a duty, and the defendant breaches that duty, the plaintiff must sue for breach of contract. If society imposes the duty, the plaintiff must sue in tort.” Following this reasoning, courts should consider whether the alleged breach of a duty in tort coincides or overlaps with a duty imposed by a contract. If the duty at issue is within the scope of a contract, and the relationship of the parties that led to the creation of that duty stems from a contract, then that duty’s source is from contract and any alleged tort claims based on a breach of those duties may not be “independent.” Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Ayushi Neogi Published in ADC Defense Comment on Arbitration in Evolving Plaintiff-Friendly Landscape

May 12, 2026 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani Senior Counsel Ayushi Neogi has authored an article in the Association of Defense Counsel of Northern California and Nevada’s Defense Comment magazine examining the shifting landscape of arbitration following the Ending Forced Arbitration Act. Titled “Compelling Arbitration in a Post-Ending Forced Arbitration Act, Plaintiff-Friendly Landscape,” the article analyzes how recent legislative changes are reshaping arbitration strategy, particularly as employees gain greater ability to bypass arbitration in certain claims. Neogi provides practical insight into how courts are responding and what this means for defense counsel navigating increasingly complex and plaintiff-friendly environments. Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani

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