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Real Estate & Construction News Roundup (7/15/26) – The World Cup’s Effect on Commercial Real Estate, Megadeals Lift CRE Sales and Algorithmic Pricing Lawsuits Continue

July 27, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, DOT earmarks $1.73B in BUILD grants, federal housing bill becomes law, data center surge cools off, and more!

• Data center planning cooled off month over month from “extraordinary levels” to start the summer, while other areas of construction finally picked up a little steam. (Sebastian Obando, Construction Dive)
• The U.S. Department of Transportation announced $1.73 billion in 2026 BUILD grants covering 127 projects across 50 states, Washington, D.C., American Samoa, Guam and Puerto Rico. (Joe Bousquin, Construction Dive)
• As algorithmic pricing lawsuits continue to play out around the country, more apartment owners and managers have settled. (Julie Strupp, Multifamily Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Doctrine of Substantial Performance When It Comes to Payment

July 27, 2026 — David Adelstein - Florida Construction Legal Updates
A recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:

Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”

Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (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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One Building, Six Owners, One Defective Stucco System: How Do You Coordinate Repairs?

November 02, 2026 — David McLain - Colorado Construction Litigation Blog
The Problem: Six Homes, One Building Envelope Consider a hypothetical six-unit townhome building in Colorado. Each residence is individually owned. There is no homeowners association responsible for maintaining the building’s exterior, no commonly owned building envelope, and no association empowered to pursue construction defect claims on behalf of all six homeowners. Instead, the development relies on individual ownership, recorded easements, and party wall agreements to govern relationships among neighboring owners. Although the residences are separately owned, they share a continuous exterior stucco system, including interconnected flashing, waterproofing, and architectural transitions. One homeowner discovers water intrusion and retains an expert who identifies defects in the stucco installation. The expert recommends removing and replacing the stucco on the homeowner’s residence. However, because the exterior cladding and waterproofing systems are interconnected, the proposed repair may require work extending beyond the boundaries of that homeowner’s property. Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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What Construction Attorneys Do and When Contractors Need Them

August 11, 2026 — Construction Executive
Direct Answer A construction attorney advises contractors on contracts, payment rights, mechanic's liens, payment bond claims, change orders, delay claims, OSHA matters, defect claims, terminations and dispute resolution. The work covers far more than lawsuits—much of its value comes before a dispute ever becomes formal. Construction attorneys help contractors protect payment rights, manage project risk, resolve disputes and avoid contract terms that can turn a profitable job into a financial loss. Their work covers more than lawsuits. A construction attorney may review a contract before bid day, help preserve lien rights, respond to a defective work claim, prepare for mediation or defend a contractor after a safety citation. For contractors, legal counsel is often most valuable before a dispute becomes formal. A missed notice deadline, vague scope clause, unsigned change order or broad indemnity provision can create problems long before a claim is filed. Construction attorneys help identify those risks while there is still time to negotiate, document the issue or preserve leverage. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Conditional Payment Bond Consideration-Make Sure There Is Pay-If-Paid Provision

June 29, 2026 — David Adelstein - Florida Construction Legal Updates
If a general contractor is going to have a conditional payment bond, it needs to ensure it subcontracts contain pay-if-paid or pay-when-paid provisions. This conditional payment language in subcontracts is the general contractor’s defense that it doesn’t have to pay a subcontractor UNTIL owner has paid the general contractor for the subcontractor’s work. The general contractor (and the surety) can look at the conditional payment bond with the s. 713.245 legend stamped on its face designating the conditional nature of the bond, and assume the conditional structure is locked in against the bond: no payment from the owner, no obligation to the subcontractors under the bond. But what happens when the subcontracts contain no express conditional payment language despite having a valid conditional payment bond? Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination

June 08, 2026 — Paul Williamson - ConsensusDocs
Volumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[4] As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor. Read the full story...
Reprinted courtesy of Paul Williamson, Peckar & Abramson, P.C.
Mr. Williamson may be contacted at pwilliamson@pecklaw.com

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Not Every Job Is Worth Winning: Contract Risk Questions Contractors Should Ask Before They Bid

September 29, 2026 — Jack Mayo - ConsensusDocs
Introduction Winning the work is not the same as winning the project, at least financially. Consider a contractor that commits to procure custom or long-lead materials before receiving complete construction documents. Depending on the language of the contract, if the final design is altered after those materials have been ordered, the contractor may be left responsible for replacement costs, procurement delays, or both. Alternatively, a subcontractor that accepts a pay-if-paid provision without investigating the owner’s financing, or prematurely waives lien rights, potentially risks nonpayment for properly performed work. Such concessions can quickly transform an apparently profitable project into a significant financial burden. A successful bid can therefore become an unsuccessful project if the contractor accepts contractual “red flags” without evaluating their consequences and the long-term financial impacts that they may have. The significance of each risk will depend on the project, the parties, the proposed contract, applicable law, and the contractor’s business objectives. Although not comprehensive, this article identifies several key considerations for that process to help mitigate certain risks. Read the full story...
Reprinted courtesy of Jack Mayo, Jones Walker LLP
Mr. Mayo may be contacted at jmayo@joneswalker.com

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David Samani Joins BHBA Podcast on Mediation Best Practices

May 05, 2026 — Lewis Brisbois
Los Angeles Partner David Samani recently joined a Beverly Hills Bar Association (BHBA) podcast titled, “Mediation 360: Preparation from the Defense, Plaintiff, and Mediator Perspectives,” during which he shared his insights on various aspects of the mediation process. Mr. Samani, along with a plaintiff’s attorney and a mediator, presented their thoughts on topics including how to determine whether a case is appropriate for mediation, preparing to mediate a case, communicating with clients, and handling the mediation itself. Mr. Samani explained that early communication with clients is critical so that attorneys may learn what a client’s objectives are and develop an assessment of the case. He described that “from an early stage,” attorneys should determine the cost of litigation and ensure that the client understands “what an aggressive defense might entail.” As the matter progresses, attorneys and clients should “continue the dialogue” regarding costs as well as the strengths and weaknesses of the case, “making sure the client is apprised of the various alternatives that exist.” In addition, Mr. Samani discussed factors to consider when choosing a mediator, noting, “All mediators have their own styles and backgrounds.” He explained that some cases may call for a mediator with specialized knowledge in a particular area such as bankruptcy or securities, while other mediations may benefit from a mediator who understands the realities of private practice. Read the full story...
Reprinted courtesy of Lewis Brisbois

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