ACEC Research Institute Report: Real Risk of AI Isn’t Technology. It’s the Org Chart.
September 01, 2026 —
ACEC Research InstituteWASHINGTON (August 19, 2026) – The ACEC Research Institute today released
Leading Through AI Risk: The Enterprise Framework for Engineering Firm Leaders, a new study finding that the most significant risks artificial intelligence poses to engineering firms are organizational rather than technological, and that firms treating AI as an IT initiative are managing the wrong issue.
The report, part of the Institute’s yearslong Firm of the Future initiative, combines an extensive literature review with in-depth interviews of 21 leaders drawn from engineering firms, public infrastructure owners, technology vendors, insurance and legal professionals, licensing and regulatory agencies, and AI consultants.
The report groups AI risk into eight interconnected domains:
- technical reliability and model risk
- professional liability and standard of care risk
- data governance, privacy, and intellectual property risk
- organizational and workforce risk
- ethical, regulatory, and reputational risk
- operational and cybersecurity risk
- financial and business model risk
- strategic leadership and enterprise governance risk
The last serves as the integrating domain through which firms coordinate responsible AI adoption enterprise wide.
The report stresses that firms do not experience these risks one at a time. Weak oversight may create legal liability. Workforce gaps may affect quality assurance. “Understanding these interactions,” the study notes, “is often more important than understanding individual risks independently.”
About the ACEC Research Institute
The ACEC Research Institute is the independent research arm of the American Council of Engineering Companies (ACEC). Its mission is to fund and deliver research to equip the engineering industry with actionable intelligence on the issues critical to its success. Learn more at www.acecresearchinstitute.org.
Lost in Translation: AEC Tech’s Missing Role
May 12, 2026 —
Aarni Heiskanen - AEC BusinessI once visited a construction site where the contractor’s headquarters had commissioned a tech company to build an on-site quality-inspection application. The developer had admitted to the site engineer that they had never set foot on a construction site before. The engineer showed me what he was actually using: his own phone camera and an Excel sheet. The new app did not map to how work actually happened on site.
This is not an isolated story. The vendor builds something technically coherent but operationally disconnected. The client, somewhere up the chain, had fallen in love with the idea of the solution before anyone had built an honest business case for it.
The result is a tool that gets demonstrated at a board meeting but isn’t used in the field.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Connecticut Expands Construction Wage-Theft Liability and Prevailing Wage Recordkeeping Requirements
June 29, 2026 —
Anand Gupta & Guest Contributor - Construction Law ZoneThis post was co-authored by Labor + Employment group lawyer Christopher Costain, Hayden Eckblom (Summer Intern), and Pasqualina Fox-Mina (Summer Associate). Hayden and Pasqualina are not admitted to practice law.
On May 11, 2026, Connecticut Governor Ned Lamont signed into law Public Act 26-12, a wide-ranging bill centered around employee rights. Our colleagues in Robinson+Cole’s Labor, Employment, Benefits + Immigration group recently published a
legal update summarizing the key components of Public Act 26-12. Here, we focus on the Wage Theft and Prevailing Wage concepts in the bill that directly relate to the construction industry.
Wage Theft
With exceptions for public works and small residential projects, general contractors will be jointly and severally liable for any unpaid wages owed to an employee of a subcontractor of any tier on private construction projects, beginning with contracts entered into on or after January 1, 2027. As we know, there is a separate regime for public works projects involving payment bonds.
Read the full story...Reprinted courtesy of
Anand Gupta, Robinson & Cole LLPMr. Gupta may be contacted at
agupta@rc.com
"Resilient Rebuild Hub" Helps Wildfire-Impacted Homeowners Build Back Stronger
September 21, 2026 —
California Nevada Cement AssociationNEWPORT BEACH, Calif., Sept. 21, 2026 /PRNewswire/ -- When homeowners in a fire-ravaged Pacific Palisades neighborhood banded together last year to rebuild with fire-hardened materials rather than standard wood framing, they weren't just rebuilding houses: they were rewriting the playbook for how California communities can rebuild after wildfire. Today, the Building with Resilience effort is making that playbook available to every homeowner facing the same decision with the launch of its new Resilient Rebuild Hub for exploring fire resistant, non-combustible construction options.
The Resilient Rebuild Hub helps homeowners understand options for fire-resistant, concrete-based construction and connect with architects, engineers, and contractors who can build them. This includes six noncombustible building systems:
- Insulated Concrete Forms (ICF): stackable, high-density foam blocks filled with concrete which save 20-50% on monthly heating and cooling costs, reduce outside noise by up to 80%, offer exceptional earthquake performance and 4-hour fire resistance rating.
- Insulated Composite Concrete Forms (ICCF): similar formwork to ICF construction with composite materials that enhance strength, simplify installation, and improve long-term performance.
- Concrete Masonry: strong, durable wall systems used for decades across California and the U.S.
- Precast Insulated Sandwich Panels: a complete building enclosure system consisting of two layers of concrete separated by a continuous layer of rigid insulation.
- 3D Shotcrete: air-sprayed concrete for strong, fast, and versatile wall systems that enable a high degree of artistic freedom together with unparalleled fire resistance.
- 3D Concrete Printing: the cutting edge of residential construction, a large-scale robotic 3D printer "squeezes" a specialized concrete mixture layer by layer to allow for organic, curved designs that are often too expensive or impossible to build with traditional methods.
The Resilient Rebuild Hub is available now at buildingwithresilience.com/how-to-build. Each part is free to access and includes case studies, technical resources, and a directory of architects, engineers, and contractors experienced in each building method.
CNCA is a not-for-profit organization committed to developing sustainable and economical construction solutions for California and Nevada with an emphasis on the use of cement and concrete. For more information, visit www.cncement.org.
CalCIMA is a trade association for the construction and essential mineral industries in California, including aggregate, essential and rare earth minerals, ready mixed concrete, and asphalt producers. In all, there are about 70 producer member companies that include 500 production sites in every county of California. Our members also include more than 100 suppliers and service providers to the industry.
Founded in 1930, the National Ready Mixed Concrete Association (NRMCA) is the leading industry advocate with a mission to provide exceptional value for our members by responsibly representing and serving the entire ready mixed concrete industry through leadership, promotion, education and partnering to ensure ready mixed concrete is the building material of choice.
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
Pay-If-Paid: What You Need to Know Before Signing on the Dotted Line
August 03, 2026 — Christian Fernandez & Matthew Racioppo - Snell & Wilmer
Buried deep in the fine print of a subcontract, a pay-if-paid clause may be looming. If you are a subcontractor or supplier, misreading these clauses can put your cash flow at risk. If you are an owner or general contractor, drafting them incorrectly can leave you with obligations you never intended — or unenforceable protections you were counting on.
It is more important than ever to understand when pay-if-paid clauses hold up and when they do not, as well as recent litigation and drafting trends. Whether you are negotiating a new agreement, reviewing your standard form contracts, or staring down a payment dispute, understanding how Arizona law treats pay-if-paid clauses is essential. In this article, we break down key considerations, walk through the legal standards Arizona courts apply, and offer practical tips to consider to help you protect your payment rights on the next project.
Reprinted courtesy of Christian Fernandez, Snell & Wilmer and Matthew Racioppo, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com
Mr. Racioppo may be contacted at mracioppo@swlaw.com Read the full story...
Arizona Supreme Court Clarifies Parties’ Post-Default Conduct Cannot Validate Void Default Orders
August 24, 2026 — Joseph Kanefield, Ryan P. Hogan & Lilly M. Geiler - Snell & Wilmer
After filing a lawsuit, the first step is always serving process on the opposing party. While that preliminary step sounds basic enough, in McMahan v. Grasshopper, the Arizona Supreme Court recently provided a helpful refresher on the nuances of the service requirement and its importance in litigation for plaintiffs and defendants alike.1
Background
McMahan arose from a hit-and-run where a tractor-trailer collided with safety barricades and injured a construction worker. The construction worker sued the tractor-trailer company, and he attempted to serve the company by leaving a copy of the complaint with the assistant to the company’s statutory agent who forwarded the complaint to the company. The assistant, however, was not authorized to accept service on the company’s behalf. Before the company appeared in the action, the construction worker successfully obtained an entry of default.
Reprinted courtesy of Joseph Kanefield, Snell & Wilmer, Ryan P. Hogan, Snell & Wilmer and Lilly M. Geiler, Snell & Wilmer
Mr. Kanefield may be contacted at jkanefield@swlaw.com
Mr. Hogan may be contacted at rhogan@swlaw.com
Ms. Geiler may be contacted at lgeiler@swlaw.com
Read the full story...
PJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load Demand
May 12, 2026 — Stephen J. Humes, Alicia M. McKnight, Jason Drogin Atwood & Andrew H. Jacobs - Gravel2Gavel
In January, we discussed the Statement of Principles jointly signed by the National Energy Dominance Council and governors across the mid-Atlantic region—framing accelerating demand (especially from large-scale data centers) as an emergency reliability issue for PJM Interconnection, L.L.C. (PJM), the nation’s largest power grid operator. That policy signal is now becoming a near-term, accelerated procurement and contracting exercise. On April 8, 2026, PJM notified stakeholders of a critical issue fast path reliability backstop procurement process. PJM subsequently released a request for information (RFI) with respect to a proposed Reliability Backstop Procurement (RBP)—a one-time mechanism intended to attract significant new capacity to address projected reliability shortfalls driven by large-load growth.
RBP compresses what is often a multiyear market and regulatory conversation into a fast-moving set of commercial choices. Developers, large loads, utilities and capital providers should be preparing now for (i) an accelerated bilateral contracting window and (ii) a standardized PJM-led backstop procurement if bilateral deals do not clear enough capacity.
Reprinted courtesy of Stephen J. Humes, Pillsbury, Alicia M. McKnight, Pillsbury, Jason Drogin Atwood, Pillsbury and Andrew H. Jacobs, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com Read the full story...
