Modular Construction’s Big Boom: New Risks Outpacing Standard Contracts in Industrial Projects
March 24, 2026 —
Chad Theriot & Jack Mayo - Construction ExecutiveModular construction is revolutionizing the construction industry, tackling labor shortages, sustainability goals and supply-chain challenges, with the global market for modular and prefabricated construction projected to reach over $200 billion by 2030. While residential builders have embraced modular’s speed and affordability, the greatest risks—and opportunities—are emerging in the industrial sector, where project scale and complexity demand new legal strategies.
In 2023, Chad Theriot explored industrial and infrastructure applications of modular construction, addressing risks like offsite fabrication and integration complexities in his article, “
The Rise of Modular Construction—Impacts for Consideration.” Since that time, modular construction has continued to experience significant advancements and has been increasingly adopted by contractors across a broad spectrum of industrial and commercial projects. As modular construction continues to reshape the industrial landscape, contractors and owners alike must be mindful of the legal implications associated with its use, specifically as it relates to liability and risk allocation, regulatory compliance, quality control and upstream factors such as transportation and intellectual property concerns.
Reprinted courtesy of
Chad Theriot and Jack Mayo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
GRSM Marks Seventh Anniversary as First and Only Full-Service Law Firm in All 50 States, Climbs to #70 on Am Law 100
April 20, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani proudly celebrates the seventh anniversary of its becoming the first and only full-service law firm with offices and attorneys in all 50 states. Since launching its innovative 50-state platform in April 2019, GRSM has experienced extraordinary growth across markets, practices, and client relationships.
In the past seven years, GRSM has expanded its footprint with 20 new offices in both major and secondary markets and doubled its attorney headcount, growing from 940 to more than 2000 lawyers. This growth has propelled GRSM from the 40th to the 11th largest law firm in the United States, according to Law360, while also driving a significant rise on the Am Law 100 rankings, from #103 in 2019 to #70 in 2026. GRSM has served nearly half of the Fortune 500, a testament to its deep bench of lawyers and national capabilities.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
Traub Lieberman Attorneys Recognized in Hudson Valley Magazine’s 2026 Top Lawyers List
March 24, 2026 —
Copernicus T. Gaza, Jonathan R. Harwood, Lisa M. Rolle, Lisa L. Shrewsberry, Christopher Russo & Hillary J. Raimondi - Traub LiebermanTraub Lieberman is pleased to announce that six Partners from the White Plains, NY office have been included in the 2026 edition of the Hudson Valley Magazine’s Top Lawyers in the Hudson Valley list. This annual guide recognizes more than 270 of the region's leading attorneys.
Insurance:
- Copernicus Gaza
- Jonathan Harwood
- Lisa Rolle
- Lisa Shrewsberry
Reprinted courtesy of
Copernicus T. Gaza, Traub Lieberman,
Jonathan R. Harwood, Traub Lieberman,
Lisa M. Rolle, Traub Lieberman,
Lisa L. Shrewsberry, Traub Lieberman,
Christopher Russo, Traub Lieberman and
Hillary J. Raimondi, Traub Lieberman
Mr. Gaza may be contacted at cgaza@tlsslaw.com
Mr. Harwood may be contacted at jharwood@tlsslaw.com
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Ms. Shrewsberry may be contacted at lshrewsberry@tlsslaw.com
Mr. Russo may be contacted at crusso@tlsslaw.com
Ms. Raimondi may be contacted at hraimondi@tlsslaw.com
Read the full story...
Celebrating BWB&O’s 2026 Super Lawyers Rising Stars in San Diego!
March 31, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners
Jocelyn Russo,
Christina Matian, and Associate
Angelo Perillo have been named to the Super Lawyers 2026 San Diego Rising Stars list. This recognition highlights their outstanding dedication and distinguished service in Family Law, Civil Litigation, and Personal Injury Litigation.
SUPER LAWYERS
Jocelyn Russo: 2023-2026
Christina Matian: 2024-2026
Angelo Perillo: 2024-2026
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O’Meara, LLP
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 SeytIn 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 LLPMr. Jacobson may be contacted at
zjacobson@seyfarth.com
Recognize: A Construction Safety Week Technical Bulletin
February 23, 2026 —
Construction Safety Week - Construction ExecutiveConstruction Safety Week has long been a powerful show of force, a catalyst for bringing the industry together and putting a spotlight on the critical importance of safety. It represents a shared commitment across an expansive and impactful Industry. The construction industry is a major employer and significant contributor to the U.S. economy, creating nearly
$2.1 trillion worth of structures each year—and with that scale comes immense responsibility— and opportunity.
Over the last decade, we’ve made meaningful strides: advancing best practices, transitioning from hard hats to helmets, shedding light on vital issues that affect safety, like mental health, fostering a culture of care and accountability, and creating partnerships and initiatives for improving jobsite safety.
Reprinted courtesy of
Construction Safety Week, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
If You Get ‘Reported to the Board’ for Your Professional License (Law Note)
January 21, 2026 —
Melissa Dewey Brumback - Construction Law in North CarolinaThe NC
Board of Architecture and the NC
Board of Examiners for Engineers and Surveyors (as well as other Boards, including the NC
Licensing Board for General Contractors) have grievance procedures in which anyone – client or not—can file a grievance against you. That’s the bad news. The good news is that the Boards have seen it all before, and if the grievance is someone unhappy about a bill, or using the process to harass you for unfounded reasons, they will recognize those complaints for what they are.
HOWEVER, this does not mean that you should treat any grievance, no matter how unfounded, lightly. The first thing you need to do is contact your insurance broker/agent and report the matter. Often times, your insurance carrier will hire an attorney (someone like me) to defend you free of charge (at least up to a certain dollar amount). This is part of your insurance coverage, and you should take full advantage of it.
Read the full story...Reprinted courtesy of
Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
