A Customized Approach to Data Center Construction
June 29, 2026 —
James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law BlogData center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions.
Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements.
Reprinted courtesy of
James P. Bobotek, Pillsbury,
Arielle L. Murphy, Pillsbury and
Robert A. James, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com
Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
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Don’t Ignore Prejudgment Interest
February 02, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to contracts, there may be a clause that provides that untimely payments shall bear interest at a particular rate. Or it may be the statutory rate. That clause will come into play when determining prejudgment interest. In ANY dispute, prejudgment interest can be an important damages component that accrues from the date of the loss. Don’t ignore prejudgment interest.
The Fourth District of Florida, in a construction dispute, maintained:
“[I]f a plaintiff establishes that he sustained out-of-pocket loss, prejudgment interest must be awarded from the date of the loss. The trial court has no discretion regarding awarding prejudgment interest and must do so applying the statutory rate of interest in effect at the time the interest accrues.”
Bensusan v. Design Engineering Group, LLC, 2025 WL 3466367 (Fla. 4th DCA 2025) (citation omitted).
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Thank You All for 10 Years Straight of VA Super Lawyers
May 05, 2026 —
Christopher G. Hill - Construction Law MusingsIt is with humility and a sense of accomplishment that I announce that I have been selected for the tenth straight year to the
Virginia Super Lawyers in the Construction Litigation category for 2026. Add this to my recent election to the
Virginia Legal Elite in Construction and I’ve had a pretty good year. As always, I am thrilled to be included on these peer-elected lists. Your confidence in my work is very gratifying.
So without further ado, thank you to my peers and those on the panel at Virginia Super Lawyers for the great honor. I feel quite proud to be part of the
5% of Virginia attorneys that made this list for 2026.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
FERC’s New Order on Data Center Co-Location: What Utilities Need to Know
January 26, 2026 —
Stephen J. Humes - Gravel2Gavel Construction & Real Estate Law BlogOn December 18, 2025, the
Federal Energy Regulatory Commission (FERC) issued a pivotal order to PJM Interconnection, the nation’s largest regional wholesale power grid operator running the transmission system in the Mid-Atlantic region. The Order intends to help reshape how large loads—especially data centers—connect to the grid in the face of massive load growth from artificial intelligence (AI) hyperscalers.
At FERC’s monthly open meeting, the commissioners unanimously approved the Order, finding that PJM’s existing tariff does not adequately address the issue of co-locating large loads with data centers and electric generation. The Order was issued in FERC Docket Nos. EL24-49-000 et al., can be found at
this link.
Read the full story...Reprinted courtesy of
Stephen J. Humes, PillsburyMr. Humes may be contacted at
stephen.humes@pillsburylaw.com
Maryland Enacts Climate-Cost Study Over Veto, New Jersey Advances Climate Superfund Proposal as Earlier State Laws Face Ongoing Court Challenges
January 21, 2026 —
Amanda G. Halter, Ashleigh Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law BlogMaryland lawmakers have overridden the governor’s veto to enact legislation directing a statewide assessment of climate-related costs, while New Jersey lawmakers are preparing a January committee hearing for the State’s pending Climate Superfund Act. Together, these actions underscore continued state-level interest in both study-based and liability-focused climate-cost attribution frameworks, even as four separate lawsuits challenging state climate superfund statutes in New York and Vermont proceed in federal court.
Maryland Legislature Overrides Veto to Advance Climate-Cost Assessment
On December 16, the Maryland General Assembly voted to override Governor Wes Moore’s veto of S.B. 149 / H.B. 128, the “Climate Change Adaptation and Mitigation – Total Assessed Cost of Greenhouse Gas Emissions – Study and Reports” Act. The vote followed the Governor’s announcement, just days earlier, that his administration would fully fund the study mandated by the bill, effectively reversing his prior veto.
Reprinted courtesy of
Amanda G. Halter, Pillsbury,
Ashleigh Myers, Pillsbury and
Jillian Marullo, Pillsbury
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
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SDNY Ruling Highlights Privilege Risks in Client Use of Generative AI
March 03, 2026 —
Christopher J. Olsen, Freddy X. Muñoz & Gary M. Stein - Peckar & Abramson, P.C.Artificial intelligence is quickly becoming a go‑to tool for aggregating and summarizing large volumes of data, formulating and testing arguments, and even sketching litigation strategies. But a recent ruling from the Southern District of New York serves as a stark warning: when clients turn to generative AI for legal strategy, they may be unknowingly turning privileged information over to a third party and then creating documents that may later be discoverable in litigation. In a closely watched bench decision, Judge Rakoff ruled that AI‑generated documents created by the target of a criminal investigation using Anthropic’s Claude were not privileged despite being generated with information learned from his attorneys to support his potential legal defense and then shared with his counsel. The decision highlights the unresolved and increasingly consequential intersection of AI, privilege, and discovery.
Facts
Bradley Heppner received a grand jury subpoena and hired attorneys at Quinn Emanuel to represent him. After learning he was a target of the investigation, but before he was arrested, he created 31 documents with Claude using information from his attorneys to outline a potential defense strategy. He was later arrested on charges of securities and wire fraud, and federal agents seized his electronic devices, which contained the 31 documents that had been provided to his attorneys. Mr. Heppner argued that the documents were created to prepare his potential defense strategy in anticipation of an indictment, but he conceded that he made the decision to prepare the reports on his own, i.e., not at the direction of counsel. He nevertheless claimed the documents were protected from disclosure by the attorney-client privilege and work product doctrine; the government moved to overrule the objections.
Reprinted courtesy of
Christopher J. Olsen, Peckar & Abramson, P.C.,
Freddy X. Muñoz, Peckar & Abramson, P.C. and
Gary M. Stein, Peckar & Abramson, P.C.
Mr. Olsen may be contacted at colsen@pecklaw.com
Mr. Muñoz may be contacted at fmunoz@pecklaw.com
Mr. Stein may be contacted at gstein@pecklaw.com
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Civil Megaprojects: The Evolving Use of Dispute Prevention and Collaborative Delivery Methods in Public Contracting
January 13, 2026 —
Lisa D. Love - The Dispute ResolverCivil megaprojects are large, complex ventures in civil engineering and construction that typically cost over $1 billion to construct. These projects generally have significant and long-lasting impacts on the economy, environment and society, and involve multiple public and private stakeholders. Typical civil megaprojects include infrastructure projects, such as highways, bridges, tunnels, airports, dams, power plants and public buildings, which require extensive planning, design, coordination and construction over an extended period of time.
In the United States, there is over $500 billion worth of civil megaprojects in the pipeline, with an average of four megaprojects per month in 2024 and a total monthly value of $9.2 billion.[i] Here are some recent examples of civil megaprojects:
The Hudson Tunnel Project (a portion of the Gateway Program), under construction in the states of New York and New Jersey, involves the construction of two new tunnels and the renovation of aging rail tunnels used by Amtrak and New Jersey Transit that were damaged by Superstorm Sandy along the Northeast Corridor. This has been deemed one of the most important infrastructure projects in the country. It is projected to be completed in 2027 at a cost of over $16 billion.[ii]
Read the full story...Reprinted courtesy of
Lisa D. Love, JAMS
Labor Shortages in Construction: Managing Legal and Operational Risks
April 14, 2026 —
Meghan Douris - Construction ExecutiveLabor 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.
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