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DIRECTORY AND CAPABILITIES

We’re Burning Tokens to Clean Up Bad PDFs

August 24, 2026 — Aarni Heiskanen - AEC Business
Last Thursday, researchers from Tampere and Aalto universities reported on preliminary results of two AI- and digitalization-related projects. One project demonstrated how AI can automate the Bill of Materials process; the other tried to quantify the impact of data-driven construction and AI. The conclusion was that AI-powered automation can dramatically increase productivity, but unevenly. However, the substantial benefits may come from better outcomes rather than project efficiency. Various standards, company-specific practices, project-specific schemas, and traditions are designed for humans to comprehend. 2D drawings and text documents as PDF files, Excel sheets, and design and planning software have the information, but not the data in ideal form for automation. 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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The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues

August 03, 2026 — William L. Porter - Porter Law Group
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction. Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Only A Contractor Can Appeal a Contracting Officer’s Final Decision

April 20, 2026 — David Adelstein - Florida Construction Legal Updates
A recent decision from the Civilian Board of Contract Appeals confirms that “only a ‘contractor’ may file an appeal of a contracting officer’s final decision.” Wattiker v. General Services Administration, 2026 WL 846001 (CBCA 2026) (citation omitted). The term “contractor is not an ambiguous term. A ‘contractor’ refers to a party to a federal government contract. Wattiker (citing the Contract Disputes Act). This is why the Contract Disputes Act does not apply to parties that are NOT in contract with the federal government. Id. In Wattiker, an appellant (appealing party) challenged the dismissal of a co-appellant. The co-appellant was dismissed because he was not a contractor, i.e., a party in contract with the federal government. In other words, the co-appellant had no privity of contract with the federal government. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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New Survey Reveals Overwhelmingly Optimistic Results on the Use of AI in Construction

May 14, 2026 — Construction Executive
On December 5, 2025, CMiC and Dodge released a survey asking over 6,000 companies across various sectors of the construction industry their stance on artificial intelligence—whether they use it or not; whether they like it or not; whether they have or are planning to implement it or not; and so on. Considering its reputation for skepticism and reluctance when it comes to adopting new forms of technology, the construction industry pleasantly surprised CMiC and Dodge with its answers to these questions, with 87% of contractors believing AI will have a meaningful impact on construction. “The research indicates the construction industry is nearing a tipping point for AI adoption,” says Steve Jones, senior director of industry insights at Dodge Construction Network, who sat down with Construction Executive to delve further into the survey questions and answers and what the industry’s current position on them means for AI’s future role in construction. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Nordics Are Europe’s Next Data Center Hub

October 05, 2026 — Aarni Heiskanen - AEC Business
On September 9, 2026, Google announced its largest single investment in Europe. The company commits at least €13 billion to Finnish data centers and energy infrastructure in 2027 and 2028, expanding the existing Hamina campus and adding three new sites in Kajaani, Muhos, and Vaala. For the construction sector, this is great news: thousands of hectares, dozens of buildings, and a construction program that will extend well beyond the two-year investment window. Four Sites, One Regional Cluster Google is not a newcomer in Finland. Back in 2009, it converted a former paper mill in Hamina into a seawater-cooled data center. It has invested around €4.5 billion there over 15 years, and the site’s waste heat already feeds Hamina’s district heating network. The new program shifts the center of gravity north, to the border of North Ostrobothnia and Kainuu. 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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Structural Concerns Force Emergency Closure of Maryland Office Building

August 16, 2026 — Jim Parsons - Engineering News-Record
A 10-story Baltimore-area office building was evacuated after an underground parking structure was compromised during construction work. Read the full story...
Reprinted courtesy of Jim Parsons, Engineering News-Record
ENR may be contacted at enr@enr.com

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Court Denies Cross Summary Judgment Motions on Coverage for Odors in Newly Purchased Home

October 06, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court denied cross motions seeking to establish whether the policy covered damage due to smells in the insureds’ newly purchased home. Akina v. State Farm Fire & Cas. Ins. Co., 2026 U.S Dist. LEXIS 162817 (W. D. Wash. July 22, 2026). Plaintiffs bought a home in May 2024 but never conducted an inspection before purchasing the property. Before moving in, plaintiffs secured a homeowners’ polilcy from State Farm. After moving in, plaintiffs began noticing smells in the house and started suffering from health symptoms. Plaintiffs learned from neighbors that the prior occupants had been witnessed in “drug activity.” Plaintiffs moved out of the house and had testing done. The home tested positive for methamphetamine pollution. 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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Labor Shortages in Construction: Managing Legal and Operational Risks

April 14, 2026 — Meghan Douris - Construction Executive
Labor shortages in the construction industry have become more than a scheduling headache—they are a legal and financial risk multiplier. As contractors scramble to meet deadlines with limited manpower, shortcuts in compliance, safety and subcontractor oversight become more likely. These gaps can expose companies to regulatory penalties, contractual disputes and reputational damage. Understanding how workforce constraints intersect with labor laws and contractual obligations is critical to mitigating the risks and navigating these challenges without compromising compliance or project integrity. The construction industry has faced persistent workforce challenges for years, but recent trends have intensified the problem. Factors such as an aging workforce, reduced immigration and post-pandemic recovery pressures have left contractors struggling to find skilled labor. According to Associated Builders and Contractors, the construction workforce shortage surpassed half a million workers in 2024; in the same year, Associated General Contractors reported 88% of construction companies had difficulty finding qualified workers. Reprinted courtesy of Meghan Douris, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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