2026 Construction Law Update
January 26, 2026 —
Garret Murai - California Construction Law BlogHappy New Year! Hope the holidays were enjoyable for you.
During the first session of the California Legislature’s 2025-2026 legislative session, 2,350 bills were introduced, of which 917 bills made it to the Governor’s desk, and of which 794 bills were signed into law.
For the design and construction industry the most important bills are a new claims resolution procedure for private works projects, a 5% retention cap on certain private works projects, and a number of changes to home improvement contract requirements.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Elliott Backed Venture Sues Lloyds Over Avant Cladding, Times Reports
February 17, 2026 —
Eamon Farhat - BloombergElliott Investment Management and British housing tycoon Jeff Fairburn, joint-venture partners in UK homebuilder
Avant Homes Group, are suing
Lloyds Banking Group Plc over who should pay to fix properties that fail to meet post-Grenfell fire-safety standards, the Times reported.
Avant, which faces remediation costs of at least £107 million ($146 million) for potentially dangerous cladding, argues that Lloyds should shoulder part of the bill because most of the developments were built before 2014, when the homebuilder was under the bank’s ownership, the Times reported.
Cladding has become a contentious issue in the UK following the Grenfell Tower fire in June 2017, in which dozens died after flames spread rapidly through flammable exterior cladding on the West London high-rise, laying bare deep failures in Britain’s building safety regulations.
Read the full story...Reprinted courtesy of
Eamon Farhat, Bloomberg
Science-Based Standards for Wildfire Recovery: What California Policyholders Need to Know About A.B. 1642
March 03, 2026 —
Geoffrey B. Fehling & Yosef Itkin - Hunton Insurance Recovery BlogWildfires continue to present serious risks for California property owners. Unfortunately, commercial property owners, corporate facilities, landlords, and homeowners need to overcome not only the flames themselves, but also remediating hazardous contamination against a backdrop of unpredictable and ambiguous environmental safety standards. In response to the destructive Los Angeles area fires in 2025, the California Legislature recently introduced Assembly Bill 1642 aimed at creating uniform science-based standards for evaluating, testing, and clearing wildfire-impacted properties.
While A.B. 1642 is in its early stages of consideration, it could materially influence claims handling, remediation costs, risk management practices, and broader liability exposures for California policyholders.
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth LLP and
Yosef Itkin, Hunton Andrews Kurth LLP
Mr. Fehling may be contacted at gfehling@hunton.com
Mr. Itkin may be contacted at yitkin@hunton.com
Read the full story...
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.
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...
GRSM Attorneys Named Finalists in 2026 Women, Influence & Power in Law Awards
March 10, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani attorneys have been shortlisted as finalists for Corporate Counsel’s 2026 Women, Influence & Power in Law (WIPL) Awards, which honor women leaders who have demonstrated a commitment to advancing the empowerment of women in the legal profession.
In the Law Firm Internal Collaborative Leadership category, Stephanie Jones was recognized for her exceptional ability to foster collaboration, mentor talent, and align colleagues across GRSM. Jones has consistently demonstrated leadership rooted in trust, inclusion, and shared purpose, qualities that have strengthened the firm during a period of extraordinary growth. Her impact on the firm’s culture and success will continue as she steps into her role as Chief Operating Partner in June 2026, where she will further build on her leadership in fostering teamwork, mentorship, and alignment across the firm’s national platform.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
Data Center Construction and the AEC Partner of the Future
April 14, 2026 —
Aarni Heiskanen - AEC BusinessDuring my involvement in designing mobile phone production facilities, the speed of design and construction was critical. Any delay could directly translate into lost revenue. That same logic now applies to data centers, though the stakes are much higher. Instead of optimizing physical production lines, we are constructing infrastructure for digital production.
The global data center capacity is expected to nearly double by 2030, and with this level of demand, the traditional project-by-project delivery model begins to show its limitations.
Data centers are no longer isolated projects in the traditional sense. They are evolving into repeatable, scalable production systems, making them ideal environments for AEC process and business model innovation.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Bridging the Information Gap of Alternative Delivery Methods on Public Projects
January 21, 2026 —
Michael S. Blackwell - The Dispute ResolverIn almost all corners of the country, municipalities, counties, and states alike have historically employed a design-bid-build approach to public projects. While the delivery method lends itself easily to selecting the lowest bidder for both the design and construction phases of projects, it also excludes other, alternative methods that may be better suited for projects that require contractor involvement during the design phase, a phased approach to completion, or partnership between the public entity and private investment. But implementation of new delivery methods has posed a problem in some areas due to a lack of familiarity. This blog post proposes a simple solution.
As early as the mid-late 1990s, changes in federal procurement laws allowed for the adoption of design-build, one option for alternative delivery, for public projects. Since that time, states, municipalities, and other public entities have followed suit. Today, you can find the use of design-build, progressive design-build, A + B, CM/GC, CMAR, and P3 just to name a few of the delivery methods that have been adopted in various states. These alternatives help provide options to public entities to find the right fit for their project.
Read the full story...Reprinted courtesy of
Michael S. Blackwell, Riess LeMieux, LLCMr. Blackwell may be contacted at
mblackwell@rllaw.com