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Surety Liability Is Coextensive with Its Bond Principal

April 14, 2026 — David Adelstein - Florida Construction Legal Updates
A recent Miller act payment bond case, U.S. f/u/b/o Whitetail General Constructors v. Northcon, Inc., 2026 WL 46671 (D.Mont. 2026), contains a short noteworthy discussion as to a surety’s liability being coextensive with that of its bond principal. If you are bonded, or you are pursuing a bond, you need to appreciate this, which is why this is a noteworthy discussion:

A “surety’s liability on a Miller Act bond must be at least coextensive with the obligations imposed by the Act if the bond is to have its intended effect.” “Therefore, ‘the liability of a surety and its principal on a Miller Act payment bond is coextensive with the contractual liability of the principal only to the extent that it is consistent with the rights and obligations created under the Miller Act.’” In other words, “[w]here a subcontract’s terms are consistent with the Miller Act’s provisions, the surety’s liability on the Miller Act bond is coextensive with the contractual liability of its princip[al].”

“The liability of a surety under the Miller Act is controlled by federal law, rather than state contract law[.]” The court may, however, “look to state law when interpreting contractual provisions” in a Miller Act case.

“[T]he measure of recovery under the Miller Act is generally determined by the terms of the subcontract [or underlying contract].”

Northcon, supra, at *4-5 (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Insured’s Bad Faith Claim Survives Summary Judgment

July 13, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026). Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the deductible. 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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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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Breaking Ground On New California Public Works Prevailing Wage Requirements

April 27, 2026 — Heather Frisch, Christopher Bouquet & Ashley Stein - The Construction Seyt
Seyfarth Synopsis: As of January 1, 2026, AB 889 bulldozed California’s Prevailing Wage law, which impacts public works employers—including public agencies, the contractors that work for them, and private owners and developers whose projects may be subject to public works requirements. The amended law reframes the calculation of fringe benefits for individuals who work on public works project and mandates annualization of such benefits, demolishes the practice of frontloading these benefits, and requires employers to maintain inspection-ready records of compliance. This year, AB 889 significantly revised California’s prevailing wage law, codified at Labor Code section 1773.1, to clarify the state’s prevailing wage regulations and streamline enforcement. Accordingly, as of January 1, 2026, California public works employers are required to annualize employees’ fringe benefits and maintain specific documentation demonstrating statutory compliance. These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements. Continue reading for the blueprint of how to comply with the state’s amended prevailing wage law. Reprinted courtesy of Heather Frisch, Seyfarth Shaw LLP, Christopher Bouquet, Seyfarth Shaw LLP and Ashley Stein, Seyfarth Shaw LLP Ms. Frisch may be contacted at hfrisch@seyfarth.com Mr. Bouquet may be contacted at cbouquet@seyfarth.com Ms. Stein may be contacted at astein@seyfarth.com Read the full story...

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“The Superintendent Told Us to Do It:” Why Verbal Approval May Not Be Enough

June 02, 2026 — Andrew Lintner - Colorado Construction Litigation Blog
In construction defect litigation, one scenario appears repeatedly: a subcontractor installs work in a manner that differs from the plans, specifications, manufacturer instructions, or industry standards after being verbally directed to do so by the general contractor, superintendent, architect, or owner’s representative. At the time, the decision may seem minor. The project is moving quickly, the field team wants to maintain progress, and nobody wants to stop working over what appears to be a small issue. The subcontractor may trust the superintendent or project manager and assume the conversation will be remembered later if questions arise. Years later, however, when the project experiences problems, the people involved may deny the conversation occurred, remember it differently, or simply no longer remember the project. Without written documentation, the subcontractor can find itself defending claims for defective work, even though it performed the installation exactly as directed. Read the full story...
Reprinted courtesy of Andrew Lintner, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Lintner may be contacted at alintner@hhmrlaw.com

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White and Williams LLP Secures $42.4 Million Award for Ventana DBS LLC in Philadelphia Marriott Construction Litigation

July 27, 2026 — Craig O'Neill, Lindsay Liebman, Kristen Nichols Wright, Zachary Roth & William Taylor - White and Williams
White and Williams LLP's Construction and Surety Practice attorneys secured a significant victory for client Ventana DBS LLC in a complex commercial construction dispute before the Philadelphia Court of Common Pleas, Commerce Division. The trial team, led by Bill Taylor, retired Partner, and Craig O'Neill, Co-Chair of the Construction and Surety Practice Group, with support from Lindsay Liebman, Counsel, Zachary Roth, Partner, Kristen Nichols Wright, Associate, and Sue Ferrante, Legal Secretary, obtained a $42.4 million award on Ventana's claims for unpaid work, delay costs, CASPA penalties and interest, attorneys’ fees and other project-related costs arising from the construction of the Marriott W/Element Hotel Project in Philadelphia. To achieve this result, the White and Williams team managed an extensive discovery period over the course of four-years of litigation, conducted over sixty depositions, participated in court-ordered mediation and arbitration proceedings, and successfully represented Ventana during a bifurcated trial that spanned over the course of a year. Reprinted courtesy of Craig O'Neill, White and Williams, Lindsay Liebman, White and Williams, Kristen Nichols Wright, White and Williams, Zachary Roth, White and Williams and William Taylor, White and Williams Mr. O'Neill may be contacted at oneillc@whiteandwilliams.com Ms. Liebman may be contacted at liebmanl@whiteandwilliams.com Ms. Wright may be contacted at wrightk@whiteandwilliams.com Mr. Roth may be contacted at rothz@whiteandwilliams.com Mr. Taylor may be contacted at taylorw@whiteandwilliams.com Read the full story...

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USDOT’s DBE Interim Final Rule: How It Affects Current and Out-to-Bid DOT and Airport Projects

June 15, 2026 — Zachary F. Jacobson - The Construction Seyt
In our April 16, 2026 post, we discussed the U.S. Department of Transportation’s Interim Final Rule (IFR) concerning Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certification, specifically as it concerns transportation and airport projects in California. This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals? The answer is that the IFR did more than change who qualifies as a DBE. It also changed how federally funded transportation and airport projects must be handled during the re-evaluation period. This affects active contracts, pending procurements, airport projects, design-build teams, and anyone relying on old assumptions about DBE goals and counting of DBE and ACDBE credit. Read the full story...
Reprinted courtesy of Zachary F. Jacobson, Seyfarth Shaw LLP
Mr. Jacobson may be contacted at zjacobson@seyfarth.com

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CEO: Power Isn’t the Only Electrical Challenge for AI Data Centers

April 14, 2026 — Francesco "Frio" Iorio - Engineering News-Record
Everyone knows that data centers are voracious consumers of electricity. In fact, the U.S. is currently scrambling to meet unprecedented levels of power demand not seen since the early days of electrification and the widespread adoption of air conditioning. Read the full story...
Reprinted courtesy of Francesco "Frio" Iorio, Engineering News-Record
ENR may be contacted at enr@enr.com

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