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.
Read the full story...Reprinted courtesy of
William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
New Florida Law Adds Licensing Risk to Contractor/Subcontractor Payment Disputes
September 29, 2026 —
Brett J. Moritz & Ali Heyat - Peckar & Abramson, P.C.Effective July 1, 2026, Florida’s newly enacted Section 489.1295 of the Florida Statutes, titled “Prohibition Against Nonpayment,” requires licensed contractors to timely compensate subcontractors and suppliers for labor, services, or materials. Enacted as part of Senate Bill 290 (Ch. 2026-3, Laws of Fla.), the statute adds a new basis for instituting disciplinary proceedings against a contractor’s license if a payment is knowingly or willfully withheld.
While this is not a sweeping overhaul of Florida construction payment laws by any means, contractors should be aware that nonpayment disputes with subcontractors and suppliers may carry potential licensing consequences.
Reprinted courtesy of
Brett J. Moritz, Peckar & Abramson, P.C. and
Ali Heyat, Peckar & Abramson, P.C.
Mr. Moritz may be contacted at bmoritz@pecklaw.com
Mr. Heyat may be contacted at aheyat@pecklaw.com
Read the full story...
"Resilient Rebuild Hub" Helps Wildfire-Impacted Homeowners Build Back Stronger
September 21, 2026 —
California Nevada Cement AssociationNEWPORT BEACH, Calif., Sept. 21, 2026 /PRNewswire/ -- When homeowners in a fire-ravaged Pacific Palisades neighborhood banded together last year to rebuild with fire-hardened materials rather than standard wood framing, they weren't just rebuilding houses: they were rewriting the playbook for how California communities can rebuild after wildfire. Today, the Building with Resilience effort is making that playbook available to every homeowner facing the same decision with the launch of its new Resilient Rebuild Hub for exploring fire resistant, non-combustible construction options.
The Resilient Rebuild Hub helps homeowners understand options for fire-resistant, concrete-based construction and connect with architects, engineers, and contractors who can build them. This includes six noncombustible building systems:
- Insulated Concrete Forms (ICF): stackable, high-density foam blocks filled with concrete which save 20-50% on monthly heating and cooling costs, reduce outside noise by up to 80%, offer exceptional earthquake performance and 4-hour fire resistance rating.
- Insulated Composite Concrete Forms (ICCF): similar formwork to ICF construction with composite materials that enhance strength, simplify installation, and improve long-term performance.
- Concrete Masonry: strong, durable wall systems used for decades across California and the U.S.
- Precast Insulated Sandwich Panels: a complete building enclosure system consisting of two layers of concrete separated by a continuous layer of rigid insulation.
- 3D Shotcrete: air-sprayed concrete for strong, fast, and versatile wall systems that enable a high degree of artistic freedom together with unparalleled fire resistance.
- 3D Concrete Printing: the cutting edge of residential construction, a large-scale robotic 3D printer "squeezes" a specialized concrete mixture layer by layer to allow for organic, curved designs that are often too expensive or impossible to build with traditional methods.
The Resilient Rebuild Hub is available now at buildingwithresilience.com/how-to-build. Each part is free to access and includes case studies, technical resources, and a directory of architects, engineers, and contractors experienced in each building method.
CNCA is a not-for-profit organization committed to developing sustainable and economical construction solutions for California and Nevada with an emphasis on the use of cement and concrete. For more information, visit www.cncement.org.
CalCIMA is a trade association for the construction and essential mineral industries in California, including aggregate, essential and rare earth minerals, ready mixed concrete, and asphalt producers. In all, there are about 70 producer member companies that include 500 production sites in every county of California. Our members also include more than 100 suppliers and service providers to the industry.
Founded in 1930, the National Ready Mixed Concrete Association (NRMCA) is the leading industry advocate with a mission to provide exceptional value for our members by responsibly representing and serving the entire ready mixed concrete industry through leadership, promotion, education and partnering to ensure ready mixed concrete is the building material of choice.
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 Blog
When 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. Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com
Water Reuse Emerges as a Critical Strategy for Data Center Development
June 22, 2026 — Ashleigh Myers, Jillian Marullo & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law Blog
As demand for data centers continues to accelerate, water availability is emerging as a critical factor in project development and long-term operations. Although power supply and transmission access have historically dominated siting discussions, increasing water constraints in many regions are placing greater focus on the substantial volumes of water required to support data center cooling systems. As we covered previously, data centers are frequently located in areas already experiencing water stress and require substantial volumes of water to operate—roughly 228 billion gallons in 2023 in the United States alone—with water use projected to increase by up to 170% by 2030.
Alternative cooling options, such as free-air cooling or mechanical chillers, can reduce direct water consumption but introduce their own tradeoffs. Free-air cooling is climate-dependent and often ineffective in hotter regions, while mechanical chillers increase energy demand, potentially shifting water consumption upstream through increased electricity generation.
Reprinted courtesy of Ashleigh Myers, Pillsbury, Jillian Marullo, Pillsbury and Jason Drogin Atwood, Pillsbury
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com Read the full story...
Travelers Injury Impact Report Highlights Longer Recovery Times Amid Declining Injury Rates
May 05, 2026 — The Travelers Companies, Inc.
HARTFORD, Conn.--(BUSINESS WIRE)--The Travelers Companies, Inc. (NYSE: TRV) today released its 2026 Injury Impact Report, an analysis of more than 1.2 million workers compensation claims received by the company from 2021 through 2025. The report finds that even as workplace injury rates decline, the injuries that do occur are growing more complex and taking longer to heal – a trend driven by an aging workforce and the disproportionate vulnerability of first-year employees.
“The decrease in workplace injuries is a positive story, yet injured workers are still missing an average of 80 workdays,” said Claude Howard, Vice President of Workers Compensation Claim at Travelers. “This report is a reminder that progress doesn’t mean the risk environment requires any less attention, and an employer’s commitment to safety must keep pace with an ever-evolving workforce and injury landscape.” Read the full story...
Reprinted courtesy of The Travelers Companies, Inc.
Bad Faith Claim Survives Summary Judgment
June 08, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer’s motion for partial summary judgment on the insured’s bad faith claim, but granted the motion on the insured’s claim for punitive damages. Serbian Orthodox Church v. Brotherhood Mut. Ins. Co., 2026 U.S. Dist. LEXIS 58234 (S.D. Cal. March 19, 2026).
On February 1, 2023, the Church filed a claim for water damage with Brotherhood Mutual Insurance Company (BMIC). The claim was based on rain and wind that caused extensive water intrusion into the Sanctuary, damaging its plaster walls and ceilings and fresco paintings. The claim was assigned to Patrick Hurley. Hurley sent a letter discussing potential bars to coverage and requesting further information and documents from the Church. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com
Unable To Afford an Appellate Bond? You May Be “Indigent” And Qualify for a Discretionary Waiver or Reduction of the Bond Amount.
October 26, 2026 — Suzanne M. Nicholson - Wilke Fleury
One of the most frequent questions asked when a client is considering taking an appeal from an adverse judgment or order is whether that judgment or order is stayed pending appeal. The answer, not surprisingly, is “it depends.” While the general rule is that perfecting an appeal stays proceedings in the trial court, including enforcement of the judgment or order, there are many, many, exceptions to that rule.
One such exception is a judgment or order for “money or the payment of money.” (CCP § 917.1) In such cases, a bond or undertaking is typically required to stay enforcement. The costs of such security can be significant. If you are using an admitted surety insurer, the amount of security required is 1 1/2 times the amount of the judgment. Obtaining a bond through an admitted surety will require that you have sufficient collateral to secure the bond, and sufficient funds to pay the associated premiums, which generally run between 1% and 3% of the total bond amount, per year. So, if you are appealing from a $1 million judgment, you will likely need $1.5 million in assets as collateral, and up to $30,000 per year for the premium. Read the full story...
Reprinted courtesy of Suzanne M. Nicholson, Wilke Fleury
Ms. Nicholson may be contacted at snicholson@wilkefleury.com
