2026 Top Business Risks for Construction and Engineering Companies
May 26, 2026 —
Darren Tasker - Construction ExecutiveThe 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.
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Contractor Dispute Resolution Framework and Prevention
July 06, 2026 —
Construction ExecutiveWHAT DEFINES A CONTRACTOR DISPUTE RESOLUTION FRAMEWORK
A contractor dispute resolution framework is a structured system of contractual terms, governance processes and escalation pathways designed to prevent, manage and resolve conflicts between contracting parties with minimal disruption to cost, schedule and performance.
The framework operates as both a preventive control and a corrective mechanism. Preventive elements establish clarity in scope, expectations and accountability before work begins. Corrective elements define how disagreements are identified, documented, escalated and resolved once they arise.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Robotics Works Where Variation Ends
August 11, 2026 —
Aarni Heiskanen - AEC BusinessBuiltWorlds published its
2026 Robotics Top 50 this summer, and the list is genuinely wide. Fifty solutions across nine categories, from 3D printing and prefabricated component manufacturing to earthmoving, demolition, material transport, layout, installation, inspection, and drilling. The honorees come from sixteen countries. It looks like robotics has finally spread across the whole project lifecycle.
However, having vendors in nine categories does not mean that contractors are robotizing their work en masse.
Zacua Ventures, in its
2026 construction robotics report, estimates that on-site robotics accounted for less than 0.03% of global construction spending in 2025. Zacua says: “That is not a failed market. It is a market at the beginning of an adoption S-curve”, while warning that its estimates rest on private vendor data and may be high if vendors overstate how widely their machines are deployed.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Nomos LLP Partner Garret Murai Recognized by Best Lawyers in America
September 08, 2026 —
Garret D. Murai - California Construction Law BlogNomos LLP partner Garret Murai has been recognized in the 2027 edition of The Best Lawyers in America® in the area of Construction Law. Only about 5% of lawyers in the United States are recognized by Best Lawyers in America®.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Potential Gap in Workers Compensation Immunity Statutory Framework
June 02, 2026 —
David Adelstein - Florida Construction Legal UpdatesWorkers compensation insurance is important. As an owner, you want to ensure the contractors you hire have workers compensation insurance. Assuming you hire a contractor that is statutorily exempt from workers compensation, you want to make sure, no exception, that any subcontractor that is hired has workers compensation insurance. (Regardless, you always want subcontractors to have workers compensation insurance.). In construction, the prime contractor serves as the “
statutory employer” for purposes of workers compensation insurance.
With workers compensation comes
workers compensation immunity.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Fourth Circuit Extends Coverage to Contractor
May 14, 2026 —
Hunton Insurance Recovery BlogThe Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured.
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Hunton Andrews Kurth LLP
Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict
May 26, 2026 —
Gray Development GroupPHOENIX, May 19, 2026 /PRNewswire/ -- A Maricopa County court has entered a $323 million compensatory damages judgment in favor of Gray Development Group against ZOM Holding Inc., doing business as ZOM Living, following a 12-day trial, a unanimous jury verdict and post-trial proceedings related to a proposed business transaction.
The jury found ZOM liable on claims of breach of contract and breach of the implied covenant of good faith and fair dealing stemming from a proposed joint venture tied to a planned pipeline of luxury multifamily and commercial projects in Phoenix and Scottsdale.
The lawsuit centered on a 13-project, $1.4 billion development pipeline originated and planned by Gray Development Group over more than a decade. In 2019, Gray invited Florida-based ZOM to participate in a joint venture involving the completion of five projects, which would have marked ZOM's entry into the Arizona market.
According to court findings presented at trial, the companies entered into a mutual confidentiality and non-circumvention agreement before Gray shared extensive sensitive and proprietary information related to the projects, including planning, market analysis, costs, financial data, local business relationships and operational strategies developed by Gray over decades in Arizona.
Evidence presented during trial showed that over a 10-month period while under contract, ZOM made hundreds of requests for confidential project and market information before circumventing Gray and pursuing the projects independently, ultimately displacing Gray from projects it spent years planning and developing.
ZOM Living, headquartered in Orlando, develops multifamily and senior housing communities across the United States and operates regional offices in Boston, Dallas, Fort Lauderdale, Nashville, Phoenix, and Raleigh. ZOM is owned by Timeless Investments, the Amsterdam-based family office of Dutch businessman Hans van Veggel, which acquired the company in 1997.
About Gray Development Group
Gray Development Group was founded by architect Bruce Gray in 1991. The Phoenix-based company was the top-ranked multifamily developer in Arizona for more than a decade. The company designed and developed more than 15,000 apartment and condominium units throughout metropolitan Phoenix. Two Gray-designed developments — a Tempe midrise and a San Diego high-rise — received National Apartment Community of the Year awards.
Credibility Matters…Even in Delay Claims
September 29, 2026 —
David Adelstein - Florida Construction Legal UpdatesCredibility matters. Here’s another example involving a delay claim on public private partnership delivery method.
The project agreement required claims to be tried by a hearing examiner. The public private partnership developer (for lack of a better term) submitted delay claims that it contended were caused by Miami-Dade County. The hearing examiner awarded the developer delay time and compensation. On appeal, the County argued that the delays awarded by the hearing examiner were concurrent critical path delays with other delays caused by the developer’s team (the developer’s contractor). This was demonstrated by the fact that in an attempt to mitigate the County delay, the contractor’s incorporated a schedule fragnet into its schedule to mitigate delay that showed the critical path was driven by events deemed caused by the contractor. This was also reported in the contractor’s monthly updates. The developer argued that its mitigation plan did not work and, thus, the schedules showed a hypothetical delay caused by the contractor when, in actuality, it was the County-caused delay that drove the critical path. The hearing officer agreed with the contractor.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com