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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Ninth Circuit Holds That Policies Covering Environmental Claims Do Not Have Aggregate Limits
May 12, 2026 —
Lorelie S. Masters & Joseph T. Niczky - Hunton Insurance Recovery BlogIn the case of
County of San Bernardino v. Insurance Company of the State of Pennsylvania, the Ninth Circuit recently addressed the issue of whether general liability policies issued in the 1960s and 1970s included aggregate limits for claims arising under the premises-operations coverage in CGL policies. The difference between the policyholder’s interpretation of the policies’ limits clauses and the insurer’s interpretation was worth hundreds of millions of dollars in exposure for the insurer. The Court closely examined the policy language and extrinsic evidence from both the insurance industry’s drafting history and the parties before concluding that the policies were ambiguous. The Court construed that ambiguity in favor of the policyholder and ruled that aggregate limits did not apply to the claims at issue. The Court’s decision underscores the importance of carefully examining a policy’s limits, especially for older policies written before 1986 when the insurance industry revised the standard-form CGL policy to state the aggregate limits apply not only to products liability claims but to premises-operations claims as well. Decades of insurance industry drafting history confirms, as the policyholder’s submissions in this case indicate, that the industry well understood that operations claims like the environmental waste-disposal claims at issue here typically were not subject to aggregate limits.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth LLP and
Joseph T. Niczky, Hunton Andrews Kurth LLP
Ms. Masters may be contacted at lmasters@hunton.com
Mr. Niczky may be contacted at jniczky@hunton.com
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Contract Interpretation – Determining What the Contract Requires
March 24, 2026 —
David Adelstein - Florida Construction Legal UpdatesA good ole dispute on contract interpretation in government contracting. Contract interpretation disputes happen all the time in every jurisdiction under the sun. Think about that. Now, what’s the best way to avoid a contract interpretation dispute? Naturally, invest in the contract language and fully understand the scope of work. Make all of this clear. But, of course, this isn’t foolproof meaning you could still be doing this and you could still find yourself in a contract interpretation dispute. Although, if you are doing this, and being proactive, the contract interpretation disputes should be minimal and more streamlined.
In Liberty Technical Services, LLC v. Department of Veterans Affairs, CBCA 8385, 2026 WL 407656 (CBCA 2026), the dispute centered on whether the government owed the contractor for certain, necessary equipment (largely controllers, but also tanks and pumps) not specified in the contract. The government countered that this should be a non-issue because the contractor always acknowledged it was responsible for furnishing the unspecified, necessary equipment, and the contractor did actually provide the equipment without direction from the government. Each party claimed the contract was unambiguous when construed in context.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
FERC Issues Show-Cause Orders: Impacts on California and Other Regional Power Markets
July 13, 2026 —
Stephen J. Humes, Alicia M. McKnight & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law BlogAt an open meeting on June 18, 2026, the Federal Energy Regulatory Commission (FERC) issued show-cause orders under Section 206 of the Federal Power Act to the six FERC-jurisdictional RTOs/ISOs—PJM Interconnection, ISO New England, Midcontinent Independent System Operator, Southwest Power Pool, New York Independent System Operator and California Independent System Operator—along with their transmission owners (TOs), directing each region and the TOs to justify or revise tariff provisions governing how data centers and other large loads connect to and receive transmission service from the grid. These show-cause orders will impact several power markets across the country, including California.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury and
Jason Drogin Atwood, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
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Supreme Court Strikes Down IEEPA Tariffs: The Refund Process Will Be Messy
March 10, 2026 —
Brett W. Johnson, Derek Flint, T. Troy Galan & Thomas Williams - Snell & WilmerOn February 20, 2026, the U.S. Supreme Court held in Learning Resources, Inc. v. Trump, and the consolidated case Trump v. V.O.S. Selections, Inc., that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs unilaterally.1 The decision invalidates both the “reciprocal” tariffs and the drug-trafficking tariffs imposed under IEEPA.
For importers, the immediate question is whether, how, and when refunds can actually be obtained. On that issue, the U.S. Supreme Court provided no roadmap. To the contrary, the dissent warned that the United States “may be required to refund billions of dollars,” that the process is likely to be a “mess,” and that the majority opinion “says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.”
Reprinted courtesy of
Brett W. Johnson, Snell & Wilmer,
Derek Flint, Snell & Wilmer,
T. Troy Galan, Snell & Wilmer and
Thomas Williams, Snell & Wilmer
Mr. Johnson may be contacted at bwjohnson@swlaw.com
Mr. Flint may be contacted at dflint@swlaw.com
Mr. Galan may be contacted at tgalan@swlaw.com
Mr. Williams may be contacted at twilliams@swlaw.com>
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Denis Serkin and Michael S. Zicherman Co-Edit/Author Lexology Panoramic: Construction 2027
August 03, 2026 —
Denis Serkin & Michael S. Zicherman - Peckar & Abramson, P.C.P&A partners
Denis Serkin and
Michael S. Zicherman served as co-editors and authors of Lexology’s Panoramic: Construction 2027 – US and Global guide. Formerly Getting the Deal Through, Lexology Panoramic provides members of the construction industry and construction-related legal and business providers with side-by-side comparison of key industry issues in 19 jurisdictions worldwide.
Reprinted courtesy of
Denis Serkin, Peckar & Abramson, P.C. and
Michael S. Zicherman, Peckar & Abramson, P.C.
Mr. Serkin may be contacted at dserkin@pecklaw.com
Mr. Zicherman may be contacted at mzicherman@pecklaw.com
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UPDATED: No Easy Fix for Potomac River Sewage Spill, Now Estimated at $20M
April 08, 2026 —
Jim Parsons & Debra K. Rubin - Engineering News-RecordOne month after a collapsed pipeline north of Washington, D.C., spilled about 240 million gallons of raw sewage into the Potomac River and possibly between 300 and 400 million—which could be the largest wastewater spill in U.S. history—efforts are progressing to clear the damaged section and begin repairs despite weather and other impacts.
Reprinted courtesy of
Jim Parsons, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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My Current Love-Hate Relationship with AI
June 08, 2026 —
Garret D. Murai - California Construction Law BlogIt’s early in the relationship, I know. But still, there are some things that bug me. Yet, I also know that it’s a relationship in which leaving is not an option, and even if I could, it’s not to the point where it’s so bad that I would do so. So, if you would, let me gripe a bit.
While there’s been much discussion about AI and, at least in my neck of the woods, a fair amount of discussion about how lawyers can, should, and must use AI or risk becoming discarded into the dustbin of history, much less has been written about clients’ use of AI.
Increasingly, I’ve gotten the sense that my clients are using AI. For example, I had a client ask for confirmation that if he disagreed with an administrative decision that he could file a writ of mandate, and if so, whether that deadline was 30, 60 or 90 days after the administrative decision. The answer to the first question was yes, and as to the second question, the answer was 90 days. This was from a client who, smart as he is, probably didn’t know this off the top of his head.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
