Construction Contract Negotiation & Drafting: A Practical Checklist (and Where State-Specific Issues Can Surprise You)
April 20, 2026 —
Michelle Cooper - Sheppard Construction and Infrastructure Law BlogConstruction contract negotiation is often treated as a “forms exercise,” especially when the parties start from familiar templates (e.g., AIA forms). In practice, though, the biggest problems tend to arise not from the existence of a form, but from (i) misalignment among the project’s governing documents and participants, (ii) ambiguity in pricing and payment mechanics, and (iii) state-specific statutory requirements that override negotiated terms.
This article includes a practical checklist intended to help owners, developers, and contractors streamline contract negotiations, reduce downstream disputes, and avoid unpleasant surprises during payment administration.
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Michelle Cooper, SheppardMs. Cooper may be contacted at
mcooper@sheppard.com
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.
D.C. Circuit Upholds EPA’s CERCLA Hazardous-Substance Designations for PFAS as State-Law Settlements Highlight Expanding Liability Landscape
September 15, 2026 —
Ashleigh K. Myers, Amanda G. Halter, Jillian Marullo & Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law BlogOn August 18, 2026, a unanimous panel of the U.S. Court of Appeals for the D.C. Circuit upheld the 2024 designation by the U.S. Environmental Protection Agency (EPA) of perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund). (See Chamber of Commerce of the United States of America, et al. v. EPA, No. 24-1193 (D.C. Cir. Aug. 18, 2026).)
The decision leaves EPA’s PFOA and PFOS hazardous substance designations in place and provides guidance on the scope of EPA’s authority to make future hazardous substances designations under CERCLA Section 102(a). The decision also likely resolves a challenge to the rule that has spanned two presidential administrations. After taking office, the Trump administration had obtained an abeyance of the litigation challenging the Biden-era rule while EPA reconsidered its position. In September 2025, EPA informed the court that it had decided to retain the designations, while signaling that it would work with Congress and industry to address CERCLA liability concerns for “passive receivers.” The litigation then resumed, with the current Administration defending the rule.
Reprinted courtesy of
Ashleigh K. Myers, Pillsbury,
Amanda G. Halter, Pillsbury,
Jillian Marullo, Pillsbury and
Anthony B. Cavender, Pillsbury
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com
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Dispute Erupts Into Public Over Castro Theater Rehab Project Costs
September 08, 2026 —
Richard Korman - Engineering News-RecordAs it was about to start an arbitration of final payments on a complex theater renovation, the entertainment company that leases San Francisco's landmark Castro Theatre has filed a state court trademark violation lawsuit seeking to bar the contractor from publicizing as a success its work for the owner on that and other projects.
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Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
For Urban Walkers, a Patchy Dilemma: Who Owns the Sidewalk?
July 06, 2026 —
Linda Poon – BloombergIn 2007, New York City’s sanitation department
threatened Natalie Shea with a $300 fine for defacing public property with graffiti. Her crime: drawing a blue flower in front of her family’s Park Slope home with sidewalk chalk. She was six years old.
The incident, which made
local and
national news at the time, captures the fraught role that sidewalks often play in US cities. These patches of pavement do more than carry pedestrians to their destinations: They’re also places for commerce, social interaction and childhood play, from chalking to learning how to ride a bike. Urbanist Jane Jacobs once likened the range of activities that city sidewalks attract to an “intricate ballet.”
In the new book
Sidewalk Nation: The Life and Law of America’s Most Overlooked Resource (Harvard University Press), author Michael Pollack explores the “tangled web of state and local regulation” that governs sidewalks, with cities often passing along responsibilities for tasks like clearing snow and keeping walkways safe. He paints a portrait of the American sidewalk a disorderly and often neglected network, filled with literal and metaphorical cracks that give rise to all sorts of conflict, from mundane clashes over maintenance to more consequential fights over accessibility and inequality.
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Linda Poon, Bloomberg
Supply Chain Is a Legal Exposure—Not Just a Force Majeure Problem
September 08, 2026 —
Owen Newman - Construction ExecutiveThis is not another force majeure article. The supply-chain related legal exposure that contractors are carrying today—in sanctions risk, specification non-compliance, warranty exposure and regulatory volatility—extends well beyond what even a well-drafted force majeure clause protects.
An engineering, procurement and construction contractor on a gas-fired power plant discovers during commissioning that transformer oil in a critical unit contains Russian-origin naphthenic base oil, which is a prohibited source under Office of Foreign Assets Control sanctions. The contractor didn’t source it. A subsupplier two tiers below made the substitution when disruptions in the Strait of Hormuz tightened the primary supply chain for this specialty product and no one in the purchase-order chain flagged it. The procurement decision is long done and the documentation trail that should have caught it doesn’t exist.
Reprinted courtesy of
Owen Newman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Mr. Newman may be contacted at
oknewman@duanemorris.com
What Prevents Innovation in Construction from Taking Off
September 15, 2026 —
Aarni Heiskanen - AEC BusinessIn construction, we have the knowledge, technology, and innovative people to radically improve our performance, yet we’re still stuck in old ways. Why is that?
I attended an annual gathering for real estate and construction professionals at Rakennustieto Oy, Finland’s leading building information provider. The day before, a half-day seminar was held at the same venue. During both events, we discussed the need for change in the construction sector. Everyone agreed that we need to radically improve how we produce and share information.
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Aarni Heiskanen, AEC Business
Risk Reset: Concerns Top of Mind for Top Construction Law Firms
September 28, 2026 —
David McMillin - Construction ExecutiveIn the summer of 2025, contractors were consumed by one major issue: tariffs. Owners, builders and suppliers were trying to understand how shifting trade policy would affect bid pricing and ongoing projects. While those concerns have eased after a Supreme Court ruling, some of the industry’s top legal experts—all of whom practice at some of CE’s Top 50 Construction Law Firms—point to a different set of worries that are keeping their clients up at night and keeping their offices busy.
Inflation is not fading away, creating continued price challenges. Artificial intelligence is moving at a breakneck pace, offering potential time-saving benefits paired with major liability concerns. The federal government continues to make surprising policy changes, and contractors remain focused on managing financial risk across increasingly complex projects.
Reprinted courtesy of
David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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