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DIRECTORY AND CAPABILITIES

The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues

August 03, 2026 — William L. Porter - Porter Law Group
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction. Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Appeals Court Upholds Skanska, Granite Win in ‘I-4 Ultimate’ JV Dispute

June 15, 2026 — Bryan Gottlieb - Engineering News-Record
A federal appeals court has upheld a lower court’s decision requiring The Lane Construction Corp. to pay roughly $79 million in damages, plus interest, to joint venture partners Skanska USA Civil Southeast and Granite Construction for work on Florida’s I-4 Ultimate highway megaproject in Orlando, which was completed in 2022. Read the full story...
Reprinted courtesy of Bryan Gottlieb, Engineering News-Record
Mr. Gottlieb may be contacted at gottliebb@enr.com

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New Executive Order Prohibits Federal Contractors from Engaging in DEI Through Employment and Procurement Activities

April 27, 2026 — Laura De Santos & Monica Prieto - Gordon Rees Scully Mansukhani
On March 26, 2026, President Trump signed Executive Order 14398, entitled Addressing DEI Discrimination by Federal Contractors, requiring federal agencies to add contractual language in all federal contracts prohibiting contractors and subcontractors from engaging in any racially discriminatory DEI activities, as defined by the Executive Order (EO). While this EO includes language similar to prior DEI-related orders, it introduces a significant expansion in enforcement by subjecting non-compliant contractors to liability under the False Claims Act (FCA), including exposure to whistleblower actions and qui tam litigation. A qui tam claim is a civil action by a private individual on behalf of the government alleging fraud against federal programs and seeking to recover damages. The new EO states that involvement in any racially discriminatory DEI activities is not only unethical and illegal, but also deemed fraudulent against federal programs because it is material to the government’s payment decisions. The definition of DEI activities here matters, as this EO expands a contractor’s obligations beyond the management of its employment policies and includes prohibitions against funding or expending time or resources on DEI activities and contracting with subcontractors, vendors, or suppliers utilizing DEI programs. Read the full story...
Reprinted courtesy of Laura De Santos, Gordon Rees Scully Mansukhani
Ms. De Santos may be contacted at ldesantos@grsm.com

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Construction Robotics Works Where Variation Ends

August 11, 2026 — Aarni Heiskanen - AEC Business
BuiltWorlds 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. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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What Is the Independent Tort Doctrine? New Case Explains…

August 24, 2026 — David Adelstein - Florida Construction Legal Updates
Florida’s Sixth District Court of Appeals in Atout v. HHM Land Trust Dated October 29, 2013, 51 Fla.L.Weekly D1569a (Fla. 6th DCA 2026) recently included an extensive discussion on Florida’s independent tort doctrine. The independent tort doctrine is an important legal doctrine, particularly when parties are in contractual privity. This doctrine stands for the proposition that tort claims must be independent of any breach of contract. See Atout, supra. The Sixth District’s extensive discussion analyzed the indicators to determine this “independence,” which may arise from the source of the duty, the asserted conduct, the damages sought, or even public policy: Unlike claims that rely on contractual relationships, an “independent” tort is often characterized by a duty imposed by law rather than by agreement. As to this consideration, United States District Court Judge Steven Merryday has explained that the independent tort doctrine honors the same divide as the economic loss rule, but rather than looking at the nature of the loss, it focuses on the source of the duty allegedly breached. “If a contract imposes a duty, and the defendant breaches that duty, the plaintiff must sue for breach of contract. If society imposes the duty, the plaintiff must sue in tort.” Following this reasoning, courts should consider whether the alleged breach of a duty in tort coincides or overlaps with a duty imposed by a contract. If the duty at issue is within the scope of a contract, and the relationship of the parties that led to the creation of that duty stems from a contract, then that duty’s source is from contract and any alleged tort claims based on a breach of those duties may not be “independent.” Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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ACEC Supports BUILD America 250 Act as Important First Step on Surface Reauthorization

May 26, 2026 — The American Council of Engineering Companies
WASHINGTON -- The American Council of Engineering Companies (ACEC), the business voice of America’s engineering and design services industry released the following statement on the BUILD America 250 Act: "Chairman Graves and Ranking Member Larsen have taken an important bipartisan step toward reauthorizing the federal surface transportation programs that are critical to economic growth in every state. The BUILD America 250 Act provides five years of stability in funding road and transit projects, raises new revenues to address the solvency of the Highway Trust Fund, and includes meaningful provisions to strengthen project delivery, advance digital infrastructure, and improve the contracting framework that engineering firms rely on every day. ACEC will continue to advocate for investment levels that keep pace with the country's growing infrastructure needs, and we urge the Committee to keep this process moving forward." The American Council of Engineering Companies (ACEC) is the business association of America’s engineering industry, representing more than 5,500 independent engineering firms and more than 650,000 professionals throughout the United States engaged in the development of America’s transportation, water, and energy infrastructure, along with environmental, industrial, and other public and private facilities. Founded in 1906 and headquartered in Washington, D.C., ACEC is a national federation of 51 state and regional organizations.

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How Engineers Will Determine Why NYC's Pfizer HQ Conversion Buckled

July 13, 2026 — Bryan Gottlieb - Engineering News-Record
Construction crews have stabilized the former Pfizer headquarters redevelopment in Midtown Manhattan after two load-bearing structural columns buckled on the 21st floor July 7. The focus has now shifted from emergency response to determining what caused the office-to-residential conversion to suffer a major structural failure. Read the full story...
Reprinted courtesy of Bryan Gottlieb, Engineering News-Record
Mr. Gottlieb may be contacted at gottliebb@enr.com

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Chambers USA Recognizes GRSM as 2026 Industry Leader

June 29, 2026 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani has once again been recognized by Chambers USA, a prestigious directory of the country’s top law firms. In addition to the firm’s practice recognitions, eight partners, David Capell, Nancy Erfle, Matthew Foy, Ashlee Grant, Craig Heryford, Andrew Port, Todd Regan, and Angela Richie, were recognized among the nation’s top lawyers in their respective fields. Chambers USA recognized the firm in the following eight categories: USA – Nationwide – Insurance: Dispute Resolution: Insurer, Band 4 The firm is widely sought after by national insurance sector clients facing a wide array of coverage disputes as well as bad faith claims. The firm has additional capabilities in class actions and appellate litigation. Its broad base of experience includes professional liability, construction, and bankruptcy-related issues. This is the third year the firm has received this recognition. Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani

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