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Bid Today, Pay a Different Rate Tomorrow? California AB 1198 Changes Prevailing Wage Rules for Large Public Works Projects

November 09, 2026 — Heather Frisch & Brenda Radmacher - The Construction Seyt
Contractors and subcontractors bidding on California’s largest public works projects will soon face a new labor-cost risk: the wage rates they are required to pay may change after they submit their bids. California’s prevailing wage rules generally set the minimum pay for workers on public works projects based on the type of work and the project’s location. Under Assembly Bill 1198 (“AB 1198”), updated prevailing wage rates may apply during construction to public works contracts awarded or advertised for bid after July 1, 2027 if the awarded value of the prime contract is $35 million or more. On those projects, the wage rates that applied when the project was first advertised may not remain the same throughout the work. For contractors pursuing infrastructure projects that take several years to complete, this is not just a payroll issue. A change in required wage rates can affect the cost of work already priced in a bid. Contractors will need to consider that possibility when estimating labor costs, setting aside funds for unexpected costs, obtaining subcontractor prices, and negotiating contract terms that address price increases or changes to the work. Those terms can determine whether the contractor or the public agency awarding the contract bears the additional cost. Contractors will also need processes in place to track wage changes and their effect on project costs. Reprinted courtesy of Heather Frisch, Seyfarth and Brenda Radmacher, Seyfarth Ms. Frisch may be contacted at hfrisch@seyfarth.com Ms. Radmacher may be contacted at bradmacher@seyfarth.com Read the full story...

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The Race to Reengineer Cybersecurity

October 06, 2026 — Emell D. Adolphus - Engineering News-Record
It took six days for Colonial Pipeline Co.'s 5,500-plus miles of connected refined petroleum supply infrastructure from Houston to New York City, to come back on line after a May 7, 2021 ransomware cyberattack forced the company to shut down operations and pay $4.4 million for restoration. Read the full story...
Reprinted courtesy of Emell D. Adolphus, Engineering News-Record
Mr. Adolphus may be contacted at adolphuse@enr.com

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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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Turning Expert Services into Products

July 20, 2026 — Aarni Heiskanen - AEC Business
A Finnish engineering, architecture, and project consulting company, AINS Group, recently opened an online store to purchase fixed-price services. The store presents specialist work in a product-like format, with fixed service names, defined scopes, and visible prices, such as a building history report, a zoning plan cost analysis, and a technical preliminary survey for a property transaction. Is this productization a smart move or a sign that expert services are being commoditized? 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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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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Idaho Supreme Court Delivers First Authoritative Construction on the Community Infrastructure District Act

November 09, 2026 — Sara M. Ajeti & Tara Martens Miller - Snell & Wilmer
On February 12, 2026, the Idaho Supreme Court issued its first authoritative decision construing the Community Infrastructure District Act (CID Act), Idaho Code §§ 50-3101 to 50-3121, in Doyle v. Harris Ranch Community Infrastructure District No. 1. The opinion resolves several issues of first impression — what qualifies as reimbursable “community infrastructure,” how strictly the 60-day statute of limitations bars challenges to a CID’s formation and bond authority, and whether a CID is legally distinct from its creating municipality. For developers forming or using a CID, the decision provides welcome certainty on the durability of CID bonds, reimbursement structures, and the scope of qualifying community infrastructure. Background The CID Act allows a developer to petition Idaho cities and counties to form special-purpose taxing districts that finance community infrastructure ahead of development and allow growth to “pay for itself.” I.C. § 50-3101(1)(a)–(c). “Community infrastructure” is broadly defined to include roads, sidewalks, parks, sewers, stormwater facilities, and other public facilities that have a “substantial nexus” to, and directly or indirectly benefit, the district. I.C. § 50-3102(2). A CID is formed upon petition by two-thirds of residents or all landowners within a proposed district to the governing city or county. Once formed, CIDs are political subdivisions with only the power the Act expressly grants, including the powers to contract, finance infrastructure, levy property taxes, and incur debt through general obligation bonds. I.C. § 50-3105(1). Qualified electors within the district must approve a ceiling bond amount by a two-thirds vote; once approved, the district board may issue additional bond series without a further elector vote, notice, or hearing. I.C. § 50-3108(1)–(3). Reprinted courtesy of Sara M. Ajeti, Snell & Wilmer and Tara Martens Miller, Snell & Wilmer Ms. Ajeti may be contacted at sajeti@swlaw.com Ms. Miller may be contacted at tmmiller@swlaw.com Read the full story...

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Risk Reset: Concerns Top of Mind for Top Construction Law Firms

September 28, 2026 — David McMillin - Construction Executive
In the summer of 2025, contractors were consumed by one major issue: tariffs. Owners, builders and suppliers were trying to understand how shifting trade policy would affect bid pricing and ongoing projects. While those concerns have eased after a Supreme Court ruling, some of the industry’s top legal experts—all of whom practice at some of CE’s Top 50 Construction Law Firms—point to a different set of worries that are keeping their clients up at night and keeping their offices busy. Inflation is not fading away, creating continued price challenges. Artificial intelligence is moving at a breakneck pace, offering potential time-saving benefits paired with major liability concerns. The federal government continues to make surprising policy changes, and contractors remain focused on managing financial risk across increasingly complex projects. Reprinted courtesy of David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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When Projects Go Off Schedule: Navigating Construction Delays and Disputes

October 20, 2026 — Shay Kulkarni - Peckar & Abramson, P.C.
Shay Kulkarni, Partner in P&A’s San Diego office, was recently featured on Racho Mesa Insurance Services’ StudioOne™ Safety and Risk Management Podcast Network, in an episode titled, “When Projects Go Off Schedule: Navigating Construction Delays and Disputes.” During the episode, Shay joins Josh Hill, Surety Account Executive at Rancho Mesa, to discuss the best practices for navigating delays, disruptions, and disputes that arise during construction projects. The conversation explores how careful contract review, thorough project documentation, timely notice, and proactive risk management can help contractors safeguard their rights and more effectively address potential conflicts. Read the full story...
Reprinted courtesy of Shay Kulkarni, Peckar & Abramson, P.C.
Mr. Kulkarni may be contacted at skulkarni@pecklaw.com

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