Identifying Unfair Clauses in Construction Contracts
February 17, 2026 —
Curtis W. Martin - Peckar & Abramson, P.C.In 1979, virtually all projects were completed under form contracts. As I started practicing construction law, it seemed that most form contracts were generally fair. They were negotiated by industry groups and over the next 10-20 years they appeared to become fairer. We could and did compare provisions in the AIA documents, the Federal contract forms, and the EJCDC agreements. When we did, we found subtle differences, but broad similarities in their approach to contract risk allocation.
Today many (most?) private projects are done with “manuscript” contracts – instruments tailored to the owner’s interests. And many public entities have developed their own contracts. And not all those clauses seem so fair.
This month I focus on contract clauses that I consider unfair. And while unfairness, like beauty, may be in the eye of the beholder, I think that the clauses described below aptly fit that descriptor.
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Curtis W. Martin, Peckar & Abramson, P.C.Mr. Martin may be contacted at
cmartin@pecklaw.com
Successful KF Defense Results in Dismissal with Prejudice
January 13, 2026 —
Elliott Wright & William "Pat" Durland - Kahana FeldKahana Feld Partner Elliott Wright and Senior Counsel William “Pat” Durland secured a major victory for their client with a complete dismissal of all claims by establishing that the Plaintiff failed to satisfy the Texas Tort Claims Act’s jurisdictional prerequisites through our Plea to the Jurisdiction.
Our Plea to the Jurisdiction demonstrated that governmental immunity applies unless a Plaintiff can prove a clear and unambiguous statutory waiver, and that the Plaintiff bears the burden of pleading and proving such a waiver. In this case, we showed that the Plaintiff provided no timely statutory notice as required by §101.101 of the TTCA and the City Charter’s six-month notice requirement, making jurisdiction impossible to invoke. Without proper notice—formal or actual—the court has no power to hear the case, and the defect cannot be cured by amendment.
Reprinted courtesy of
Elliott Wright, Kahana Feld and
William "Pat" Durland, Kahana Feld
Mr. Wright may be contacted at ewright@kahanafeld.com
Mr. Durland may be contacted at wdurland@kahanafeld.com
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Reducing Rework on Construction Projects Benefits Budget, Schedule and Financial Loss
February 10, 2026 —
Brian Clarke - Construction ExecutiveThe costs of not building it right the first time is statistically staggering—some research suggests up to 20% of the total project costs. This article highlights the costs of re-work, provides a financial worksheet to track the costs of re-work, and a trusted tool to help reduce the impact of re-work.
Typically, when discussing rework, one thinks of the labor and material costs, but there are other costs associated with rework that are less easily quantified:
- Liquidated damages and related legal costs
- Potential for increasing safety incidents associated with rework
- Morale loss due to performing rework
- Loss of previously trained workers due to delays caused by rework
- Reputational loss and the inability to bid on future work
- Challenges of future work to be performed due to schedule delays on a current project
Reprinted courtesy of
Brian Clarke, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Clarke may be contacted at brianclarke1121@aol.com
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Managing Tariff Volatility in Cross‑Border U.S. Construction Projects: Practical Contract‑Drafting and Procurement Strategies
March 10, 2026 —
Sara Beiro Farabow & Michael Wagner - The Construction SeytVolatile U.S. tariff announcements continue to affect international supply chains for U.S. construction projects. Although recent litigation has centered on the scope of presidential tariff authority rather than construction‑specific disputes, these decisions carry important implications for how parties structure risk in their contracts. In May 2025, the U.S. Court of International Trade (CIT) struck down certain “Liberation Day” tariffs as exceeding presidential authority under IEEPA. A federal district court in Washington, D.C. likewise issued a preliminary injunction suspending related tariffs—though it later stayed its own order pending appeal. And the Supreme Court has agreed to review cases addressing the legal limits of IEEPA‑based tariffs.
While none of these developments arises from construction disputes, the themes they highlight—timing, statutory authority, and documentation—mirror the issues encountered when tariff conditions disrupt international procurement. The following strategies reflect practical steps U.S. project owners, contractors, and foreign suppliers can take to mitigate risk, drawing on drafting approaches now widely used across major construction forms, including—but not limited to—modified AIA agreements.
Reprinted courtesy of
Sara Beiro Farabow, Seyfarth Shaw LLP and
Michael Wagner, Seyfarth Shaw LLP
Ms. Farabow may be contacted at sfarabow@seyfarth.com
Mr. Wagner may be contacted at mewagner@seyfarth.com
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Builders Oppose Senate Housing Bill Over Investor Ban Provision
March 24, 2026 —
Katy O'Donnell - BloombergA powerful group representing the nation’s home builders is coming out against the most significant housing legislation in more than a decade over a provision negotiated by the White House that would restrict institutional investors from purchasing single-family homes.
The builders’ objection could imperil the bill’s chances of becoming law, even as leaders of both parties are desperate to show they are doing something to alleviate voters’
cost-of-living concerns. The Senate voted 90-8 to clear a procedural hurdle for the bill on Wednesday, with a vote on final passage expected early next week.
The inclusion of the investor ban in a broader housing bill was key to getting the White House on board,
Senate Banking Committee Chairman Tim Scott, a Republican from South Carolina, told reporters Tuesday.
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Katy O'Donnell, Bloomberg
WSHB Managing Partner Chad Dunigan Named Finalist for Jerrold S. Oliver "Ollie" Award of Excellence
May 12, 2026 —
Wood Smith Henning BermanChad Dunigan, Managing Partner of Wood Smith Henning & Berman's Orlando, Florida, office, has been selected as one of just four finalists for the prestigious Jerrold S. Oliver Award of Excellence, affectionately known in the construction defect community as the "Ollie" Award. This distinguished honor recognizes individuals who have made exceptional contributions and demonstrated unwavering dedication to advancing the field of construction defect law.
Named in honor of the late Judge Jerrold S. Oliver, a revered founder of alternative dispute resolution in construction defect claims and litigation, the Ollie award symbolizes loyalty, commitment, and trust within the industry. Judge Oliver's legacy as a staunch believer in the resolution process continues to inspire professionals who strive for excellence in the construction defect community.
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Wood Smith Henning Berman
Applying Jury Verdict Method in Quantifying Damages Due to Defective Specifications
March 31, 2026 —
David Adelstein - Florida Construction Legal UpdatesAn older case deals with three important considerations: (1) defective specifications; (2) whether the defective specifications were misleading or misrepresentative; and (3) applying the jury verdict method in quantifying damages.
In Metric Construction Co., Inc. v. U.S., 80 Fed. Cl. 178 (Fed. Cl. 2008), a contractor was contracted by the federal government to construct a warehouse. There were defects in the structural steel design specifications underlying the standing seam metal roof installed by the contractor and, as a result, the roof system leaked causing damage. The contractor incurred significant costs in repairing the damage, and pursued recovery of these costs against the government. The contractor claimed the structural steel design serving as the framework for the metal roof was defective and misleading and caused the leaks.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Don’t Breach Your Contract, but If You Do, Don’t Breach First
December 22, 2025 —
Christopher G. Hill - Construction Law MusingsWell, it’s been a while since my last post here at
Musings due to travel, work, Thanksgiving, etc. so I thought I’d let a recent case remind us all that while breaching a construction contract is bad, doing it first is even worse. This is the so called “doctrine of first breach” that basically states that if both parties are in breach (or even just one), then the first to breach is the one that will bear the costs of breach. The doctrine also states that the one first to breach first can’t enforce any of its rights going forward.
The plaintiff in
SEG Props. LLC v. NTC Mazzuca Constr.,Inc., the Virginia Court of Appeals considered a first breach scenario that was pretty extreme. The basic facts are as follows:
SEG hired Mazzuca to build a private shooting range and hired a property manager (Jones, Lang, LaSalle, Inc. (“JLL”)) as its project representative. Per the contract, if Mazzuca provided a payment application on or before the 25th of the month, payment was due by the 25th of the following month. In no event was payment to be made more than 30 days from receipt of the payment application by the owner’s representative. Even where there was a dispute, the undisputed amounts were to be paid. Mazzuca and JLL used a so called “pencil” method for payment applications that involved JLL reviewing the payment applications for errors and then a final payment application with the corrections being sent to the Architect. Needless to say there were change orders and disputes, but after the smoke cleared, it was obvious that from the first payment application, SEG had failed to make timely payment (for the whole saga, please read the case as it is too long for this post). Later, SEG terminated Mazzuca for cause upon one day’s notice that SEG would be supplementing Mazzuca’s workforce.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com