A Win for Clarity: What a Recent Federal Court Decision Means for Davis-Bacon Compliance
July 13, 2026 —
Stephen E. Irving - Peckar & Abramson, P.C.Following the
Department of Labor’s 2023 Davis-Bacon rule changes, federal construction contractors faced a pressing question: not whether paying prevailing wages is required, but how far those obligations could extend. Could they reach off-site material suppliers? Delivery drivers? Contracts that omitted Davis-Bacon clauses entirely? A recent federal court decision in AGC of America v. US Department of Labor answers these questions in important ways, vacating several disputed provisions and giving contractors greater certainty when pricing, bidding, and administering federal construction projects.
The ruling addresses three aspects of the 2023 regulations that sought to extend Davis-Bacon obligations beyond their traditional scope. By vacating those provisions, the decision creates a more predictable compliance environment and reinforces an important principle: Davis-Bacon enforcement works best when contractors, workers, and regulators operate under clear, objective rules.
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Stephen E. Irving, Peckar & Abramson, P.C.Mr. Irving may be contacted at
sirving@pecklaw.com
Don’t Ignore Prejudgment Interest
February 02, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to contracts, there may be a clause that provides that untimely payments shall bear interest at a particular rate. Or it may be the statutory rate. That clause will come into play when determining prejudgment interest. In ANY dispute, prejudgment interest can be an important damages component that accrues from the date of the loss. Don’t ignore prejudgment interest.
The Fourth District of Florida, in a construction dispute, maintained:
“[I]f a plaintiff establishes that he sustained out-of-pocket loss, prejudgment interest must be awarded from the date of the loss. The trial court has no discretion regarding awarding prejudgment interest and must do so applying the statutory rate of interest in effect at the time the interest accrues.”
Bensusan v. Design Engineering Group, LLC, 2025 WL 3466367 (Fla. 4th DCA 2025) (citation omitted).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
It’s That Time of Year: Contract Review Time
February 02, 2026 —
Garret Murai - California Construction Law BlogMy father used to make me wash the family cars every weekend . . . rain or shine. The nice thing about washing a car in the rain is that you don’t need to dry it. Once, while sudsing up one of the family cars in the rain I spotted a couple of Jehovah Witnesses making house calls along our street. As they approached our house, they looked at me, said something to one another, and decided membership probably wasn’t a good fit for our family. If my dad saw that he probably would have thought that was reason enough to have me wash the family cars in the rain. Obviously, I never mentioned it to him.
This is all a rather nostalgic way of reminding myself to get off my duff. The holidays are over. There’s stuff needing doing. Whether you like it or not. Like updating my contracts. You might consider doing the same. A few suggestions:
Retention
For certain private works construction contracts entered into on or after January 1, 2026, retention is now capped at 5%, mirroring the 5% retention cap on state and local public works construction contracts. The 5% retention cap applies to contracts between owners and direct contractors, between direct contractors and subcontractors, and between subcontractors. So, basically, everyone up and down the construction change.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
HDR Agreed to $12M Settlement With Miami Bridge Design-Build Team
May 12, 2026 —
Richard Korman - Engineering News-RecordHDR last year agreed to pay $12 million to the design-build construction contractor Archer Western-de Moya Group to settle its claims that the engineer had incompletely designed and under-designed Miami's new Signature Bridge when the joint venture committed to a fixed price prior to construction in 2018.
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Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
White and Williams LLP Secures Trio of Cyber Coverage Wins
May 12, 2026 —
Gabriel Darwick & Sean Elman - White and Williams LLPThree weeks, three jurisdictions, three cyber wins.
White and Williams picked up the first victory on March 9, 2026, in the United States District Court for the Western District of Texas, where the court granted summary judgment to their client enforcing a Cyber Crime Loss sublimit. See Perry & Perry Builders, Inc. v. Cowbell Cyber and Obsidian Specialty Ins. Co., 2026 U.S. Dist. LEXIS 49409 (E.D. Tex. Mar. 9, 2026). In Perry, the insured was deceived into transferring money intended for a vendor to an unintended third party. The insurer acknowledged that the loss was covered and paid the insured the policy’s Cyber Crime Loss sublimit. Discontent with a single sublimit, the insured argued that because it wired the money to the fraudster in separate transfers, it was entitled to a second Cyber Crime Loss sublimit.
Reprinted courtesy of
Gabriel Darwick, White and Williams LLP and
Sean Elman, White and Williams LLP
Mr. Darwick may be contacted at darwickg@whiteandwilliams.com
Mr. Elman may be contacted at elmans@whiteandwilliams.com
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Can Foreclosure Sale Be Overturned Because Sale Price Is Grossly Inadequate?
January 26, 2026 —
David Adelstein - Florida Construction Legal UpdatesForeclosure actions are equity actions. See Verzura Construction, Inc. v. Hotel La Petitite Muse, LLC, 50 Fla.L.Weekly D2500a (Fla. 3d DCA 2025). Can a sale price at a foreclosure auction sale be set aside because the foreclosed party believes the sale price is grossly inadequate? A recent case discusses this question and, as you will see, the argument that the sale price is grossly inadequate is not enough to overturn a sale.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
CA Civil Code § 8850: What Private Multi-state Owners and Developers Building in California in 2026 Need to Know
January 26, 2026 —
Anand Gupta - Construction Law Zone BlogOwners and developers building in California must be aware of a new statute, CA Civil Code § 8850, which takes effect for contracts entered into, on, and after January 1, 2026. The statute will likely apply to most private construction projects; however, a carve-out exists for residential projects that are not mixed use and are four stories or less.
When a contractor—or, with proper authorization, a subcontractor—submits a claim related to payment, time extensions, damages, or change orders (encompassing the majority of construction disputes), the owner must provide a written response within 30 days. This response must clearly state which portions of the claim are disputed and which are not. The owner has 60 days from the date of its response to issue payment for those undisputed amounts. Late payments will accrue interest at a rate of two percent per month.
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Anand Gupta, Robinson & ColeMr. Gupta may be contacted at
agupta@rc.com
What Massachusetts Contractors and Developers Can Learn from Cannistraro v. Columbia Construction
July 13, 2026 —
Anthony LaPlaca & Luke Marston - The Construction SeytIntroduction
On June 26, 2026 the Massachusetts Supreme Judicial Court issued its decision in J.C. Cannistraro, LLC v. Columbia Construction Co.—a holding that sits at the intersection of Prompt Pay Act compliance and the Massachusetts Arbitration Act.
[1]
Most already know that the Massachusetts Prompt Pay Act (PPA) imposes strict timing and certification requirements for rejecting payment applications and proposed change orders on projects valued at $3 million or more. Most notably, the PPA requires the paying party to give the payee written notice of its approval or rejection of progress applications and proposed changes within 15 days of receipt, which notice must include a “factual and contractual basis for the rejection” and must be “certified as made in good faith.”
[2] In the absence of a timely certified notice, payment is “deemed to be approved” unless the payor properly rejects payment before it comes due.
[3]
Reprinted courtesy of
Anthony LaPlaca, Seyfarth Shaw LLP and
Luke Marston, Seyfarth Shaw LLP
Mr. LaPlaca may be contacted at alaplaca@seyfarth.com
Mr. Marston may be contacted at lmarston@seyfarth.com
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