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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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Cuomo Bridge Lawsuit Adversaries Weigh Mediated Settlement

July 06, 2026 — Richard Korman - Engineering News-Record
Rival legal teams have reached a critical juncture as they consider a mediated settlement in one of two major payment lawsuits pending between a design-build contracting team and the New York State Thruway Authority over construction of the more than $3-billion Mario M. Cuomo Bridge north of New York City. Read the full story...
Reprinted courtesy of Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com

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New York Orders Moratorium on Large Data Center Permits

July 27, 2026 — Levi W. Barrett - Peckar & Abramson, P.C.
Levi W. Barrett, Co-Managing Partner of Peckar & Abramson’s New Jersey office, Co-Chair of the firm’s Construction Contracts & Risk Management team, and Executive Committee Member, was recently quoted in “New York Orders Moratorium on Large Data Center Permits,” an article written by Engineering News-Record (ENR). The article examines New York Governor Kathy Hochul’s executive order temporarily halting state environmental permit reviews for certain large-scale data center projects while regulators develop a comprehensive framework to address the sector’s energy demands, water consumption, environmental impacts, and effects on local communities. It also explores the broader implications of the moratorium for developers, contractors, investors, and other stakeholders, as well as the ongoing debate between economic development, AI-driven infrastructure growth, and environmental and utility ratepayer concerns. Read the full story...
Reprinted courtesy of Levi W. Barrett, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com

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The GKN Aerospace Chemical Release and the Laws Designed to Address It

July 06, 2026 — Sean M. Sherlock - Snell & Wilmer
On May 21, 2026, a 34,000-gallon storage tank at the GKN Aerospace facility in Garden Grove, California began leaking methyl methacrylate (MMA), a volatile and highly flammable industrial chemical used to manufacture high-strength acrylic plastics. GKN Aerospace makes advanced military and commercial transparencies, such as aircraft canopies, windshields, cabin windows, bullet-resistant glass, and spacecraft windows. In polymer chemistry lingo, MMA is known as a monomer. Monomers are like individual links to a chain. Under the right conditions they link up (react) with each other to form long-chained polymers, or plastics. MMA is an unstable monomer that requires controlled storage conditions to avoid setting off a polymerization (chain) reaction. According to early reports, the MMA tank at GKN Aerospace overheated. The cause of the overheating is not yet clear, but the overheating may have created conditions enabling the MMA to initiate polymerization, which in turn generated heat, which in turn generated pressure, activating the tank’s pressure-relief system and releasing MMA vapor into the atmosphere. Concerns about a runaway reaction, massive release, and explosion led the Orange County Fire Authority to order evacuation of approximately 40,000 residents and closure of thirteen schools. Read the full story...
Reprinted courtesy of Sean M. Sherlock, Snell & Wilmer
Mr. Sherlock may be contacted at ssherlock@swlaw.com

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Amazon’s Latest Response to AI Data Center Backlash: $1 Billion

October 20, 2026 — Matt Day – Bloomberg
Amazon.com Inc.’s latest attempt to address the intensifying blowback to an unprecedented buildout of computing infrastructure: a commitment to spend more than $1 billion over the next five years on initiatives for the communities near its server farms. Read the full story...
Reprinted courtesy of Matt Day, Bloomberg

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Executive Insights 2026: Leaders in Construction Law

October 06, 2026 — Construction Executive
What advice would you give contractors regarding documentation and recordkeeping to better protect themselves during disputes? Jim Archibald Partner Bradley Arant Boult Cummings LLP Disputes over payment, scope and delays are among the biggest risks contractors face. Thorough documentation doesn’t just help win these disputes; it may prevent them from happening at all. Start with the contract: Every project should begin with a written agreement that clearly defines scope, schedule, payment terms and change-order procedures. Verbal understandings are difficult to enforce. Track changes in real time: Change orders, change directives, RFIs and scope clarifications should always be documented in writing. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Construction Attorneys: Contract Negotiation Strategy

September 01, 2026 — Construction Executive
Contract negotiation is where project expectations become enforceable business obligations. A reasonable bid can become a high-risk agreement when the final contract expands the scope, shortens notice periods, limits payment rights or transfers liability that was never included in the price. Construction attorneys help project leaders identify those consequences before execution. Their role is not to eliminate every risk or prolong negotiations. It is to determine which risks can be controlled, insured, priced, shared or rejected while preserving a workable deal. The financial stakes can be substantial. HKA's 2025 analysis of more than 2,200 distressed construction and engineering projects found that disputed costs averaged 33.4% of contract budgets. Scope changes affected more than 28% of the projects studied and remained the most common cause of conflict. In North America, the average dispute studied by Arcadis in 2024 had a value of $60.1 million and took 12.5 months to resolve. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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2026 Top Business Risks for Construction and Engineering Companies

May 26, 2026 — Darren Tasker - Construction Executive
The 2026 Allianz Risk Barometer revealed some surprising findings for construction and engineering businesses. Now in its fifteenth year, this annual business risk ranking by corporate insurer Allianz Commercial incorporates the views of 3,338 global risk management professionals on the main perils on their radar for the year. Survey respondents included construction and engineering risk experts who identified the threats keeping them up at night. Here is how they ranked the top industry risks for 2026: Natural Catastrophes Natural catastrophe risk retains the top spot, with 38% of construction and engineering respondents citing this risk as their leading concern for 2026. From the insurance perspective, economic and insured losses remained high, albeit lower than the 10-year average. The evolving nature of natural catastrophes continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural catastrophes are set to reach $107 billion for 2025, according to Swiss Re—the sixth year in a row they have exceeded $100 billion, while economic losses are well in excess of $200 billion. Reprinted courtesy of Darren Tasker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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