Fourth Circuit Extends Coverage to Contractor
May 14, 2026 —
Hunton Insurance Recovery BlogThe Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured.
Read the full story...Reprinted courtesy of
Hunton Andrews Kurth LLP
USDOT’s DBE Interim Final Rule: How It Affects Current and Out-to-Bid DOT and Airport Projects
June 15, 2026 —
Zachary F. Jacobson - The Construction SeytIn our April 16, 2026 post, we discussed the U.S. Department of Transportation’s Interim Final Rule (IFR) concerning Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certification, specifically as it concerns transportation and airport projects in California.
This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals? The answer is that the IFR did more than change who qualifies as a DBE. It also changed how federally funded transportation and airport projects must be handled during the re-evaluation period. This affects active contracts, pending procurements, airport projects, design-build teams, and anyone relying on old assumptions about DBE goals and counting of DBE and ACDBE credit.
Read the full story...Reprinted courtesy of
Zachary F. Jacobson, Seyfarth Shaw LLPMr. Jacobson may be contacted at
zjacobson@seyfarth.com
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
Spain’s Sagrada Familia: Contemporary Construction Methods Speed Iconic Basilica to Completion
March 24, 2026 —
Pam McFarland - Engineering News-RecordIn 2014, the entity behind construction of one of the world’s most iconic churches—the wildly imaginative Sagrada Familia basilica in Barcelona, Spain—contacted global consultant Arup with a challenge: Could the firm help the project team update designs developed more than a century earlier, to ensure that a critical project component was built to be structurally sound?
Read the full story...Reprinted courtesy of
Pam McFarland, Engineering News-RecordMs. McFarland may be contacted at
mcfarlandp@enr.com
That’s a Wrap! Pennsylvania Court Holds Arbitration Clause in Online Agreement Unenforceable
May 14, 2026 —
Gus Sara - The Subrogation StrategistIn Duffy v. Tatum, 2026 Pa. Super. LEXIS 112, 2026 PA Super 41, the Superior Court of Pennsylvania (Superior Court) considered whether an arbitration provision contained in the online Terms of Service on the defendant’s website were enforceable. The plaintiff, Daniel Duffy (Duffy), visited the website of defendant, Dolly, Inc. (Dolly), to purchase moving services. Duffy selected the number of movers, items to be moved and the type of vehicle needed. To complete the booking, the website required Duffy to checkmark a box labeled “By checking this box I accept the Dolly Terms of Service.” Duffy did not have to open the link or scroll to the bottom of the agreement before being able to click on the checkmark box. The Terms of Service included an arbitration provision requiring that any dispute related to the moving services to be resolved by arbitration in accordance with the American Arbitration Association. The Terms of Service did not include any statement that the user was waiving the right to a jury trial. The Superior Court found the internet Terms of Service unenforceable.
During the moving process, an accident occurred and injured Duffy. In May 2024, Duffy and his wife sued Dolly and other related entities alleging negligence and loss of consortium. Dolly filed preliminary objections alleging that the parties agreed to alternative dispute resolution. The lower court overruled the preliminary objections, finding that Dolly’s website did not provide reasonably obvious notice of its Terms of Service to Duffy and, as such, Duffy never agreed to waive his constructional right to a jury trial. Dolly filed an appeal to the Superior Court.
Read the full story...Reprinted courtesy of
Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
SDV Celebrates 30th Anniversary Press Release
April 08, 2026 —
Saxe Doernberger & Vita, P.C.Trumbull, Connecticut – Saxe Doernberger & Vita, P.C. (SDV) is proud to announce the celebration of its 30th anniversary.
Founded in 1996 by three attorneys in a small New Haven, Connecticut office, SDV was built on a clear and focused mission: representing policyholders in insurance coverage matters. Three decades later, that commitment remains at the core of the firm’s identity and has been instrumental in its continued success and reputation nationwide.
Today, SDV is a nationally recognized boutique firm with 50 attorneys serving policyholders across the United States. Building on its longstanding reputation for excellence and client advocacy, the firm is pleased to announce the opening of its newest office in Massachusetts—an exciting milestone that reflects SDV’s continued growth. The new office is led by Managing Partner Anna Perry.
Read the full story...Reprinted courtesy of
Saxe Doernberger & Vita, P.C.
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.
Read the full story...Reprinted courtesy of
Michelle Cooper, SheppardMs. Cooper may be contacted at
mcooper@sheppard.com
Location, Location, Location — But Which One? The Few Words in Your Construction Contract that Pick Where You Fight
June 29, 2026 —
Brad Sands - ConsensusDocsMost professionals know the old real estate line: location, location, location. It turns out to be just as true for construction contracts as it is for property.
Consider a recent case involving a project owner that hired two design firms for a project. When issues arose during construction, the owner sued the design firms in state court in Brazoria County, Texas, pursuant to the forum selection clause in the parties’ contracts. The defendants then removed the case to the federal district court in Galveston, a courthouse in a different county. But the owner wanted the case back in Brazoria County state court. Whether it got its wish came down to two words in the contract: “situated in.” This article is about words like those.
A construction contract’s forum selection clause names the place for the fight nobody plans to have, and where that fight happens can shape how it goes. This article explains why the wording in your forum selection clause deserves careful reading before you sign a construction contract. It is not a deep dive into the mechanics of federal removal jurisdiction, and it is not an academic comparison of the terms “forum” and “venue.” Instead, it is a practical look at how courts actually read these clauses, so the location of a future fight is the one you intended.
Read the full story...Reprinted courtesy of
Brad Sands, Jones Walker, LLPMr. Sands may be contacted at
bsands@joneswalker.com
