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Doctrine of Substantial Performance When It Comes to Payment

July 27, 2026 — David Adelstein - Florida Construction Legal Updates
A recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:

Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”

Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Real Estate & Construction News Roundup (8/19/26) – Single-Family Housing Investors Worry, Confidence in Multifamily REITs and Construction Backlog Falls

September 08, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, U.S. Chamber of Commerce creates Housing Advisory Council, a legal battle develops over new federal rules related to mortgage escrow accounts, hospitality dealmakers pursue ‘bigger, higher-conviction’ M&A, and more!

• In the wake of the 21st Century ROAD to Housing Act becoming law, the U.S. Chamber of Commerce has created a Housing Advisory Council with the goal of advancing market-driven policies that help increase housing supply and promote affordability. (Julie Strupp, Multifamily Dive)
• Investors in the single-family housing market are increasingly concerned about interest rates, rising insurance and home costs, and the ongoing war with Iran. (Diana Olick, CNBC)
• A legal battle is brewing over new federal rules related to accounts that hold money to pay homeowners’ property taxes and insurance payments. (Sarah Agostino, CNBC)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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The Great Escape: Non-Invalidation Clauses and Property Damage Claims

October 20, 2026 — Abigail Smith & Kaarthiga Manimaran - SDV Fenchurch
At their core, non-invalidation clauses (“NICs”) recognise an important commercial reality: an insured cannot control everything that happens at its premises. In the event that an insured finds itself in breach of a condition or warranty owing to events that have increased the risk of damage to its property, but which were outside its authority, knowledge or beyond its control, a NIC may prevent the insurer from avoiding the claim. For that reason, they’re an important tool in an insured’s coverage arsenal. Although there is relatively little caselaw on NICs, their purpose was recognised in The Seashell of Lisson Grove Ltd v Aviva Insurance Ltd [2011] EWHC 1761 (Comm) (on which we wrote a previous article – The Good, the Bad & the Ugly: #26 The Good: The Seashell of Lisson Grove Ltd v Aviva) Reprinted courtesy of Abigail Smith, SDV Fenchurch and Kaarthiga Manimaran, SDV Fenchurch Ms. Smith may be contacted at abigail.smith@sdvfenchurch.uk Ms. Manimaran may be contacted at kaarthiga.manimaran@sdvfenchurch.uk Read the full story...

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Late Notice Bars Insured’s Claim for Water Leak Damage

August 11, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court granted the insurer’s motion for summary judgment dismissing the insured’s claim due to late notice. Global Approach, Inc. v. Scottsdale Ins. Co., 2026 U.S. Dist. LEXIS 120183 (S. D. Fla. June 1, 2026). Global suffered water damage on September 3, 2021, which originated in the bathroom of one of its rental properties. Global reported the claim to its insurer, Scottsdale, on October 19, 2021. Prior to reporting the claim, Global hired a handyman to inspect the property and then demolished the damaged area and repaired the bathroom. 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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Federal Court Pauses New Mexico PFAS Labeling Rule, but Not Its Bans or Reporting Deadline

October 26, 2026 — Ashleigh K. Myers, Jillian Marullo & Claudia Vetesi - Gravel2Gavel Construction & Real Estate Law Blog
As we previously reported, New Mexico adopted novel product labeling requirements that would require manufacturers to display a PFAS flask symbol on covered products. Those requirements are now on hold. A coalition of industry associations led by the American Chemistry Council sued in federal court, arguing that the mandate unconstitutionally compels speech in violation of the First Amendment. On September 16, 2026, the U.S. District Court for the District of New Mexico preliminarily enjoined enforcement of the labeling rule while the case, American Chemistry Council v. Kenney, No. 1:26-cv-02130-MIS-SCY, proceeds. The court found the challengers likely to succeed because New Mexico had not shown a reasonable fit between the label and its interests in protecting consumer health and the environment. A Broad Rule Built Around One Symbol New Mexico enacted its PFAS Protection Act in April 2025, joining Maine and Minnesota as the third state to adopt broad reporting requirements and eventual sales restrictions for products containing intentionally added per- and polyfluoroalkyl substances (PFAS). The Act also authorized the Environmental Improvement Board to require PFAS labels on products. The Board’s implementing rule, which became effective July 1, 2026, specified the exact format of the label and how it had to appear. Reprinted courtesy of Ashleigh K. Myers, Pillsbury, Jillian Marullo, Pillsbury and Claudia Vetesi, Pillsbury Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Ms. Vetesi may be contacted at claudia.vetesi@pillsburylaw.com Read the full story...

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Lost in Translation: AEC Tech’s Missing Role

May 12, 2026 — Aarni Heiskanen - AEC Business
I once visited a construction site where the contractor’s headquarters had commissioned a tech company to build an on-site quality-inspection application. The developer had admitted to the site engineer that they had never set foot on a construction site before. The engineer showed me what he was actually using: his own phone camera and an Excel sheet. The new app did not map to how work actually happened on site. This is not an isolated story. The vendor builds something technically coherent but operationally disconnected. The client, somewhere up the chain, had fallen in love with the idea of the solution before anyone had built an honest business case for it. The result is a tool that gets demonstrated at a board meeting but isn’t used in the field. 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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A Customized Approach to Data Center Construction

June 29, 2026 — James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law Blog
Data center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions. Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements. Reprinted courtesy of James P. Bobotek, Pillsbury, Arielle L. Murphy, Pillsbury and Robert A. James, Pillsbury Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com Mr. James may be contacted at rob.james@pillsburylaw.com Read the full story...

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Arbitration in Construction Disputes: Process and Best Practices

July 27, 2026 — Construction Executive
Arbitration in construction disputes is a private process where owners, contractors, subcontractors, designers or suppliers present claims to one or more neutral arbitrators instead of taking the dispute through court. The arbitrator reviews evidence, hears testimony and issues a decision that is usually binding. Construction arbitration is common because project disputes are technical, document-heavy and time-sensitive. Claims may involve schedule delays, disputed change orders, defective work, differing site conditions, payment, termination, indemnity, surety issues or professional liability. Arbitration can be faster and more specialized than litigation, but speed is not guaranteed. Poor contract language, broad discovery, weak records and unclear damages can make arbitration expensive. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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