Data Center Construction and the AEC Partner of the Future
April 14, 2026 —
Aarni Heiskanen - AEC BusinessDuring my involvement in designing mobile phone production facilities, the speed of design and construction was critical. Any delay could directly translate into lost revenue. That same logic now applies to data centers, though the stakes are much higher. Instead of optimizing physical production lines, we are constructing infrastructure for digital production.
The global data center capacity is expected to nearly double by 2030, and with this level of demand, the traditional project-by-project delivery model begins to show its limitations.
Data centers are no longer isolated projects in the traditional sense. They are evolving into repeatable, scalable production systems, making them ideal environments for AEC process and business model innovation.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Presumption of Prejudice Applies to All Affirmative Defenses Regarding Insured’s Failure to Comply with Post-Loss Policy Conditions
June 23, 2026 —
David Adelstein - Florida Construction Legal Updatesn a recent property insurance coverage dispute, an issue on appeal pertained to the “prejudice” jury instruction associated with the insured’s failure to comply with post-loss policy conditions. The trial court found that the prejudice only pertained to prompt notice and not other post-loss policy conditions. This was reversed on appeal as prejudice applied to ALL the post loss policy conditions that the insured failed to comply with, not just the prompt notice requirement. The prejudice presumption applies to all affirmative defenses regarding an insured’s failure to comply with post-loss policy conditions.
Consider this discussion when dealing with an insurer raising prejudice as an affirmative defense to do an insured’s failure to comply with post-loss policy conditions, and the associated burdens of proof:
On appeal, [the insurer] contends the trial court erred by instructing the jury that the presumption of prejudice was inapplicable to all of its post-loss obligation defenses except prompt notice. We agree.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.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.
Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law
June 29, 2026 —
Brenda Radmacher - The Construction SeytDaily Journal (California) featured an article by Construction Law partner
Brenda Radmacher, “A new path for construction defects in California.” The piece, published on June 15, 2026, examines Assembly Bill 1903 and its potential to significantly reshape California’s construction defect framework, particularly for common interest properties.
The article highlights how AB 1903 would overhaul the state’s current right-to-repair system by mandating completion of prelitigation procedures, raising requirements for defect claims, strengthening developers’/builders’ rights to repair, and introducing a voluntary “certified building” program. The legislation aims to rebalance competing interests by reducing litigation-driven costs while preserving protections for homeowners.
Read the full story...Reprinted courtesy of
Brenda Radmacher, Seyfarth Shaw LLPMs. Radmacher may be contacted at
bradmacher@seyfarth.com
Did You Get the Message? (And does it count?) The Legal Consequences of Text Messages, Group Chats, and Informal Digital Communication on Construction Projects
March 17, 2026 —
Kellie Ros & Curtis Martin - ConsensusDocsIntroduction: The New Reality of Construction Communication
Construction projects have always depended on a constant stream of communication. Today’s project managers, superintendents, and foremen have broadened the method of communication to include convenient forms of digital communication. Superintendents text photos of field conditions, owners send quick approvals through WhatsApp, architects clarify design intent in a Teams chat, and subcontractors coordinate sequencing through group texts. These channels are fast, convenient, and deeply embedded in modern project culture. Yet the legal framework governing construction contracts has not evolved at the same pace. Many contracts still assume – or require – that notice, directives, and approvals occur through formal written channels—letters, emails to designated recipients, or structured project‑management platforms. This disconnect creates significant legal risk, particularly for contractors who rely on informal messages as authorization for extra work or schedule changes. Courts are increasingly asked to interpret text messages, chat threads, and screenshots as evidence of notice, direction, or waiver. The outcomes vary, but the trend is unmistakable: informal digital communication is now part of the project record, and it can bind parties in ways they did not expect.
Reprinted courtesy of
Kellie Ros, Peckar & Abramson, P.C. and
Curtis Martin, Peckar & Abramson, P.C.
Ms. Ros may be contacted at kros@pecklaw.com
Mr. Martin may be contacted at cmartin@pecklaw.com
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Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination
June 08, 2026 —
Paul Williamson - ConsensusDocsVolumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[
1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[
2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[
3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[
4]
As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor.
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Paul Williamson, Peckar & Abramson, P.C.Mr. Williamson may be contacted at
pwilliamson@pecklaw.com
Real Estate & Construction News Roundup (7/8/26) – Data Centers Negotiate Flexibility for Speed, Hotel Deal Activities Focus on Luxury, and DC Sues Apartment Owners
July 20, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!
- Hyperscalers want their data centers online, and utilities want to provide interconnections, but both are still looking for common operating guidelines. (Herman K. Trabish, Construction Dive)
- Contractors are taking advantage of multibillion-dollar train and transit contracts, even as funding challenges create hurdles for project execution. (Matthew Thibault, Construction Dive)
- Although hospitality and leisure M&A deal volume was down 2.5% in the first half of 2026 compared to the prior six months, investors are concentrating on the upper end of the market, including luxury hotels, wellness resorts and gaming, or “data-rich,” platforms. (Noor Adatia, Hotel Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Anti-Concurrent Causation Clause Prevents Coverage for Collapse
April 27, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the decision of the trial court granting summary judgment to the insurer after agreeing that the policy’s anti-concurrent causation clause barred coverage. Lido Hospitality, Inc. v. AIX Specialty Ins. Co., 2026 Iii. App. Unpub. LEXIS 133 (Ill. Ct. App. Jan. 27, 2026).
One of the brick veneer walls of the Lido Motel collapsed during a windstorm. Lido reported the loss it its insurer, AIX. AIX investigated and determined that the brick veneer collapsed due to pervasive wear and tear and corrosion of the underlying infrastructure that secured the veneer- specifically the components that anchored or tied the masonry veneer to the underlying wooden substrate.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
