Texas Prepares to Restart Data Center Construction, with Around 300 Projects Under Review And 6,608 MW Awaiting Energization Approval, Driving Demand for Rapid-Response Lifting Operations
October 20, 2026 —
SarensTexas is experiencing an unprecedented increase in power demand. The ERCOT (Electric Reliability Council of Texas) power grid reached a record peak demand of 91.1 GW in summer 2026, 6% above the previous record, according to the U.S. Energy Information Administration (EIA). This is compounded by interconnection requests totaling around 474 GW, more than five times the record peak, with approximately 90% of these requests related to data centers, according to the Office of the Governor of Texas. Within this context, authorities have launched a comprehensive review process. In August , the Governor directed the Public Utility Commission of Texas (PUCT) and ERCOT to audit all data centers progressing toward grid connection, covering around 300 projects. ERCOT has also suspended approvals to energize data centers of 75 MW or more and has set December 10 as the date for the publication of its reports.
For the industry, this pause creates a valuable planning window. Goldman Sachs notes that it takes 18 to 24 months to build a data center once permits have been secured, while only 50% to 60% of planned capacity is delivered on schedule. Supply chain constraints and labor shortages are among the most common causes of delays. In this context, construction agility is becoming increasingly critical. A one-month delay at a typical 60 MW U.S. data center is estimated to cost up to $14.2 million in lost revenue, additional costs and penalties, according to STL Partners data. Against this backdrop, Sarens, which has operated in the U.S. since 2009 and is headquartered in Houston, with offices also in Odessa and Beaumont, positions as a logistics partner for developers and contractors preparing for the execution phase.
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Sarens
We Won’t Permit That Excuse!
June 23, 2026 —
Curt Martin & Richard Eiszner - ConsensusDocsA Texas appellate court recently ruled that a building permit wasn’t a condition precedent for a construction project. That caught our attention. Can you build a commercial project without a permit?
But as we read the case, we see the court’s reasoning. And it reminds us of an important legal principle that should inform our contract drafting and negotiation.
The case was a civil suit brought by the project owner against its tenant improvement contractor for work on a medical spa. The owner claimed that the contractor didn’t perform the work properly and didn’t finish construction. The contractor argued that delays and problems were caused by the owner, alleging numerous failures, including the owner’s failure to secure a building permit.
Reprinted courtesy of
Curt Martin, Peckar & Abramson, P.C. and
Richard Eiszner, Peckar & Abramson, P.C.
Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Eiszner may be contacted at reiszner@pecklaw.com
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The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues
August 03, 2026 —
William L. Porter - Porter Law GroupIt 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.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Mandatory Arbitration Isn’t All Bad, if. . .
July 13, 2026 —
Christopher G. Hill - Construction Law MusingsIn the past week or so mandatory arbitration has been all the rage. From those that argue that
arbitration is becoming more burdensome than litigation, to my friend and fellow construction attorney Scott Wolfe who gives great advice on how to make arbitration worth it again. You can place me in the camp of those that think that mandatory arbitration clauses of the type typically found in contracts can add a layer of expense that can be unnecessary.
However, if an arbitration clause is carefully drafted, and properly used, these clauses an be helpful in assuring that the streamlining effect for which arbitration was created actually occurs. Because the
contract is king in Virginia, these provisions can essentially create the rule of civil procedure used to resolve any dispute relating to the project.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
EPA, Maryland Sue DC Water Over Massive Potomac River Sewage Spill
May 14, 2026 —
Jim Parsons - Engineering News-RecordThe state of Maryland and the federal government have filed separate lawsuits against the District of Columbia Water and Sewer Authority (DC Water), both alleging that the agency’s failure to address longstanding deterioration in the Potomac Interceptor contributed to a
weeklong release of more than 240 million gallons of raw sewage into the Potomac River this past January.
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Jim Parsons, Engineering News-RecordENR may be contacted at
enr@enr.com
Structural Concerns Force Emergency Closure of Maryland Office Building
August 16, 2026 —
Jim Parsons - Engineering News-RecordA 10-story Baltimore-area office building was evacuated after an underground parking structure was compromised during construction work.
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Jim Parsons, Engineering News-RecordENR may be contacted at
enr@enr.com
Same Insurers, Different Results: Another Chapter in Acuity v. Kinsale and the Limits of Co-Carrier Recovery Under Colorado Law
October 27, 2026 —
David McLain - Colorado Construction Litigation BlogWhen multiple insurers potentially owe coverage for the same construction defect claim, can one insurer force another to participate in the defense or indemnification of their common insured? If the other insurer refuses, what remedies are available?
As is often the case in insurance coverage litigation, the answer depends on precisely what claim is being asserted, whose rights are being enforced, and when the claim is brought.
In our earlier article,
Acuity v. Kinsale Insurance Company: Co-Carrier Obligations and Subrogation under Colorado Law, we examined the United States District Court for the District of Colorado’s decision in Acuity v. Kinsale Insurance Company, 750 F. Supp. 3d 1229 (D. Colo. 2024). That decision addressed the circumstances under which an insurer that funded a construction defect settlement could pursue another insurer for equitable contribution, contractual subrogation, and alleged bad-faith conduct.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Key Person Provisions in Construction Contracts: Because People, Not Companies, Build Projects
October 27, 2026 —
Nate Simon - Construction ExecutiveIn construction, the person running your job matters: the project manager who sat in your preconstruction meetings, who understands the phasing, who knows why the MEP coordination sequence was set up the way it was, who has relationships with your team and the owner’s team. That person is not interchangeable. And if they disappear six weeks into the job and get replaced by someone who’s never read the drawings, you have a problem.
This happens all the time. A contractor or consultant sells the A-team—the experienced project manager; the sharp superintendent; the people who won the job—during the proposal and interview. Then, once the contract is signed, those people quietly get moved to a larger project, not out of anything nefarious, but usually out of a necessity. A fire happens on another project and they are needed to put it out. By the time you realize those working on your project aren’t the ones you originally signed on, you’re three months in and the damage is already underway.
Reprinted courtesy of
Nate Simon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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