Modular Construction’s Hidden Risk: Where Things Go Wrong Between the Factory and the Field
June 15, 2026 —
Jack Mayo - ConsensusDocsIntroduction
As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them. The appeal is straightforward: faster timelines, controlled fabrication environments, and reduced on-site labor demands. But the risks that accompany these benefits are often less clear—and, in many cases, poorly defined.
For example, what happens when a prefabricated component is delayed past its installation window? Who is responsible for a defect discovered inside a sealed, installed module? What happens to warranty obligations when a prefabricated component must be modified on site?
Read the full story...Reprinted courtesy of
Jack Mayo, Jones Walker LLPMr. Mayo may be contacted at
jmayo@joneswalker.com
A Win for Clarity: What a Recent Federal Court Decision Means for Davis-Bacon Compliance
July 13, 2026 —
Stephen E. Irving - Peckar & Abramson, P.C.Following the
Department of Labor’s 2023 Davis-Bacon rule changes, federal construction contractors faced a pressing question: not whether paying prevailing wages is required, but how far those obligations could extend. Could they reach off-site material suppliers? Delivery drivers? Contracts that omitted Davis-Bacon clauses entirely? A recent federal court decision in AGC of America v. US Department of Labor answers these questions in important ways, vacating several disputed provisions and giving contractors greater certainty when pricing, bidding, and administering federal construction projects.
The ruling addresses three aspects of the 2023 regulations that sought to extend Davis-Bacon obligations beyond their traditional scope. By vacating those provisions, the decision creates a more predictable compliance environment and reinforces an important principle: Davis-Bacon enforcement works best when contractors, workers, and regulators operate under clear, objective rules.
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Stephen E. Irving, Peckar & Abramson, P.C.Mr. Irving may be contacted at
sirving@pecklaw.com
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
Judge's Order Halts Google Data Center Project in Minnesota
July 27, 2026 —
Annemarie Mannion - Engineering News-RecordConstruction of a $1-billion Google data center planned by
Ryan Cos. on 485 acres in southeastern Minnesota was expected to start in July but is now halted under a judge’s order.
Read the full story...Reprinted courtesy of
Annemarie Mannion, Engineering News-RecordMs. Mannion may be contacted at
manniona@enr.com
Real Estate & Construction News Roundup (3/18/25) – Data Center Frenzy, China’s Expanding REIT Market and Tariff-Affected Construction Costs
March 31, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, relistings reached highest total in a decade, Florida State Legislature passes bill to increase the state’s housing supply, data center construction adapts to changes and more!
- The data center construction frenzy and a new, potentially larger highway bill were top of mind for builders during the latest round of contractor earnings calls and financial reports. (Joe Bousquin, Construction Dive)
- Tariffs and associated policy uncertainty have increased construction costs and delayed leasing and investment choices. (J.P. Morgan)
- Relistings hit the highest January figure since Redfin began tracking this metric a decade ago. (Diana Olick, CNBC).
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Lienor Dealing With “Show Cause” Summons by Condominium Unit Owner
September 01, 2026 —
David Adelstein - Florida Construction Legal UpdatesOne of the statutory vehicles to shorten a construction lienor’s statute of limitations to foreclose on a construction lien is through a “show cause” summons that essentially requires the lienor to foreclose on the lien within 20 days from receipt of the “show cause” summons. This is a statutory procedure under Florida’s Lien Law in
Fla. Stat. s. 713.21(4). If a lienor receives a “show cause” summons and lawsuit, the lienor should, without delay, counterclaim or file a separate lien foreclosure lawsuit within the 20-day period without exception. This is provided the lienor wants to move forward with its lien. If a lienor does not, the lien will be discharged of record. If you are a lienor and receive a “show cause” summons, please immediately consult with construction counsel that can best advise you and perfect your lien rights.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Building More Than a Ramp: HHMR and the Home Builders Foundation
September 15, 2026 —
Colorado Construction Litigation BlogLast Friday, four members of the Higgins, Hopkins, McLain & Roswell team traded briefs, depositions, and construction litigation files for lumber, drills, and a day on a jobsite.
HHMR attorneys Ricky Nolen, Amanda Tynan, Kyle Thompson, and Tanner Davis participated in the
Home Builders Foundation’s 2026
Blitz Build, helping construct an accessibility ramp for Andrea, a Denver-area resident whose mobility challenges had made something most of us take for granted extraordinarily difficult: leaving her own home independently.
The day after the build, the volunteers received an e-mail from HBF’s Terrina Reiber with an unusual request: set an alarm for 10:00 the next morning.
At 10:00 on a Saturday, she explained, they might be running errands, meeting a friend, or simply deciding what to do with the day.
When the alarm went off, she asked them to think about Andrea.
Because Andrea could now make that same choice.
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Higgins, Hopkins, McLain & Roswell
Insured General Contractor Prevails on Motion for Summary Judgment to Establish Builder’s Risk Coverage
July 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe general contractor’s motion for partial summary judgment successfully established that damage to footings in place before the policy period was covered after the collapse of a building. Big D Builders, Inc. v. Am Zurich Ins. Co., 2026 U.S. Dist. LEXIS 72012 (D. Idaho March 31, 2026).
Big D was the general contractor for building a new airplane hangar by erecting a 38,000 square foot structure. Before Big D began construction, the site of the hangar did not contain any pre-existing structures or buildings. Before completion of the hangar, it collapsed and caused extensive property damage.
The builder’s risk policy issued by Zurich covered certain aspects of the construction project for the policy period December 28, 2023, to December 28, 2024. Zurich accepted coverage for most of the damage but not for damage to footings and columns installed prior to the start date of the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
