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Real Estate & Construction News Roundup (6/24/26) – HUD to Fund AI Grants, Luxury Hotel Deal Investment Activity to Surge, ESPCs to Fund Energy and Infrastructure Improvements

July 06, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, data centers are exposed to climate change, commercial tenant sues CoStar, cities see opportunities in emerging sports markets, and more!

• With deferred maintenance growing and capital dollars stretched thin, local governments are using ESPCs to fund energy and infrastructure improvements through future operational savings. (Vicky Uhland, Construction Dive)
• The U.S. Department of Housing and Urban Development is offering up to $3 million in grants for local governments to deploy automated permitting and building code systems. (Ryan Kushner, Construction Dive)
• Luxury hotel deals are set to see a surge in investment activity due to strong fundamentals and strengthening capital markets. (Noor Adatia, Hotel Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Chambers USA Recognizes GRSM as 2026 Industry Leader

June 29, 2026 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani has once again been recognized by Chambers USA, a prestigious directory of the country’s top law firms. In addition to the firm’s practice recognitions, eight partners, David Capell, Nancy Erfle, Matthew Foy, Ashlee Grant, Craig Heryford, Andrew Port, Todd Regan, and Angela Richie, were recognized among the nation’s top lawyers in their respective fields. Chambers USA recognized the firm in the following eight categories: USA – Nationwide – Insurance: Dispute Resolution: Insurer, Band 4 The firm is widely sought after by national insurance sector clients facing a wide array of coverage disputes as well as bad faith claims. The firm has additional capabilities in class actions and appellate litigation. Its broad base of experience includes professional liability, construction, and bankruptcy-related issues. This is the third year the firm has received this recognition. Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani

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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 Seyt
In 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 LLP
Mr. Jacobson may be contacted at zjacobson@seyfarth.com

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AI & Digital Tools on Construction Projects: Contract Risks to Address Before Peak Season

April 08, 2026 — Meghan Douris - The Construction Seyt
Artificial intelligence and advanced digital tools are no longer experimental on construction projects. In Q1 of 2026, we can already see how they are already influencing schedules, estimates, submittals, safety reporting, and day‑to‑day project documentation. As peak construction season approaches, many teams are accelerating adoption of AI to gain efficiency. What often lags behind, however, is the contract framework governing how those tools are used—and how their outputs are treated when something goes wrong. On sophisticated construction projects, that gap can quickly become a dispute driver. Read the full story...
Reprinted courtesy of Meghan Douris, Seyfarth Shaw LLP
Ms. Douris may be contacted at mdouris@seyfarth.com

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How to Fireproof a Neighborhood

March 17, 2026 — Linda Poon - Bloomberg
As builders in fire-prone areas like California race to reimagine homes for a more fiery future, one developer is zooming out to build entire fire-resilient neighborhoods. KB Home’s developments tackle an issue that’s hard for any individual homeowner to overcome: “You can do your home perfectly, but if your neighbor didn’t, you still have a fire risk,” said Roy Wright, chief executive officer of the research nonprofit Insurance Institute for Business and Home Safety. In other words, to slow the spread of urban fires it takes a village. Read the full story...
Reprinted courtesy of Linda Poon, Bloomberg

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Insurer Granted Summary Judgment, in Part, After Partial Payment of Claim

February 10, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The insurer was awarded summary judgment, in part, after paying a portion of the insured’s claim for hurricane damage. Taylor v. State Farm Fire & Cas. Co., 2025 U.S. Dist. LEXIS 231406 (S.D. Ala. Nov. 24, 2025). The Taylors’ home was damaged by Hurricane Sally. They submitted a claim under their homeowners’ policy to State Farm. They reported trees collapsing onto the house and blocking the front door, broken windows and doors, water damage and the roof collapsing in certain rooms of the house. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Balancing the Right to Repair With Evidence Preservation in Construction Defect Litigation

April 20, 2026 — Benton Wheatley & Anna Spicer - Construction Executive
Every major construction project comes with risk, whether it’s a warehouse build, a multifamily development or a major renovation. Parties tend to be aligned when things are proceeding as planned. But when something goes wrong—cracked concrete, water intrusion, systems that don’t perform as expected—those interests can quickly diverge. Property owners are often caught in the middle when construction defects surface. They’re expected to act quickly to limit damage and costs. But they also have legal obligations to preserve evidence and allow potentially responsible parties, such as contractors or designers, to observe testing, demolition and repairs. Additionally, owners often have duties to lenders and investors to fix problems promptly and pursue claims against those responsible. Meanwhile, contractors and other parties have obligations of their own—not to interfere with repairs and not to delay mitigation efforts while investigations are underway. What follows will examine how those competing responsibilities play out in construction defect disputes. Reprinted courtesy of Benton Wheatley & Anna Spicer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Jenny Michel Named Top Lawyer by Acadiana Profile Magazine

June 29, 2026 — Lewis Brisbois
Lafayette Managing Partner Jenny Michel has been named to Acadiana Profile magazine’s 2026 Top Lawyers list for Insurance Law. The annual list honors excellence across several practice areas. To select attorneys for its Top Lawyers list, Acadiana Profile works with a research firm that conducts a peer-review survey of attorneys in the Acadiana, Louisiana region. The attorneys nominate fellow professionals who they consider the best in their field of practice. Ms. Michel is co-chair of the London Market Group, the Pollution Legal Liability/Environmental Impairment Liability (PLL/EIL) practice, and the Energy, Marine & Power practice. She has worked with London insurers her entire career. Licensed in both Louisiana and Texas, she leads a team of experienced attorneys focused on marine, both traditional and alternate energy, onshore and offshore property, trucking and environmental insurance coverage and bad faith claims, excess monitoring, advice and litigation, both at the trial and appellate levels. Read the full story...
Reprinted courtesy of Lewis Brisbois

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