Labor Shortages in Construction: Managing Legal and Operational Risks
April 14, 2026 —
Meghan Douris - Construction ExecutiveLabor shortages in the construction industry have become more than a scheduling headache—they are a legal and financial risk multiplier. As contractors scramble to meet deadlines with limited manpower, shortcuts in compliance, safety and subcontractor oversight become more likely. These gaps can expose companies to regulatory penalties, contractual disputes and reputational damage. Understanding how workforce constraints intersect with labor laws and contractual obligations is critical to mitigating the risks and navigating these challenges without compromising compliance or project integrity.
The construction industry has faced persistent workforce challenges for years, but recent trends have intensified the problem. Factors such as an aging workforce, reduced immigration and post-pandemic recovery pressures have left contractors struggling to find skilled labor. According to
Associated Builders and Contractors, the construction workforce shortage surpassed half a million workers in 2024; in the same year,
Associated General Contractors reported 88% of construction companies had difficulty finding qualified workers.
Reprinted courtesy of
Meghan Douris, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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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
PJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load Demand
May 12, 2026 —
Stephen J. Humes, Alicia M. McKnight, Jason Drogin Atwood & Andrew H. Jacobs - Gravel2GavelIn January, we discussed the Statement of Principles jointly signed by the National Energy Dominance Council and governors across the mid-Atlantic region—framing accelerating demand (especially from large-scale data centers) as an emergency reliability issue for PJM Interconnection, L.L.C. (PJM), the nation’s largest power grid operator. That policy signal is now becoming a near-term, accelerated procurement and contracting exercise. On April 8, 2026, PJM notified stakeholders of a critical issue fast path reliability backstop procurement process. PJM subsequently released a request for information (RFI) with respect to a proposed Reliability Backstop Procurement (RBP)—a one-time mechanism intended to attract significant new capacity to address projected reliability shortfalls driven by large-load growth.
RBP compresses what is often a multiyear market and regulatory conversation into a fast-moving set of commercial choices. Developers, large loads, utilities and capital providers should be preparing now for (i) an accelerated bilateral contracting window and (ii) a standardized PJM-led backstop procurement if bilateral deals do not clear enough capacity.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury,
Jason Drogin Atwood, Pillsbury and
Andrew H. Jacobs, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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Segal McCambridge Shareholders and Associates Recognized in 2027 Best Lawyers in America®
September 01, 2026 —
Segal McCambridgeSegal McCambridge is pleased to announce that 24 firm shareholders and associates have been recognized in the 2027 editions of the Best Lawyers in America® and Best Lawyers: Ones to Watch® in America. Best Lawyers® is an elite global network of legal professionals recognized through a trusted, peer-reviewed distinction. For more than four decades, its Purely Peer Review® methodology has upheld the principle that recognition should be earned through the opinions of fellow attorneys, not marketing influence or paid listings. No fees are accepted for consideration or inclusion.
"This Best Lawyers recognition is especially meaningful because it reflects the caliber of advocacy our attorneys bring to clients every day, across a wide range of practice areas," said Jason P. Eckerly, Segal McCambridge Managing Shareholder. "We are proud to see so many of our colleagues honored for their legal skills, dedication, and professionalism. This continued recognition underscores the strength of our national platform and the depth of talent across our firm."
Segal McCambridge's attorneys named in Best Lawyers in America® include:
Jason P. Eckerly; Chicago, IL; Product Liability Litigation - Defendants
Scott R. Emery; New York, NY; Mass Tort Litigation / Class Actions - Defendants
Jay Evans; Pittsburgh, PA; Mass Tort Litigation / Class Actions - Defendants; Product Liability Litigation - Defendants
Richard H. Glucksman; Los Angeles, CA; Construction Law
Nathan R. Horne; Austin, TX; Construction Law; Litigation - Construction
Alice Sacks Johnston; Pittsburgh, PA; Commercial Litigation; Mass Tort Litigation / Class Actions - Defendants; Product Liability Litigation - Defendants
Patrick M. Kemp; Austin, TX; Litigation - Insurance
Mitchell P. Morinec; Chicago, IL; Commercial Litigation
Anthony J. Sbarra, Jr.; Milton, MA; Mass Tort Litigation / Class Actions - Defendants; Personal Injury Litigation - Defendants; Product Liability Litigation - Defendants
Alan J. Taylor; Southfield, MI; Litigation - Construction; Real Estate Law
Kenneth P. Williams; Southfield, MI; Insurance Law; Litigation - Insurance; Personal Injury Litigation - Defendants
David J. Yates; Southfield, MI; Personal Injury Litigation - Defendants
Segal McCambridge's attorneys named in Best Lawyers: Ones to Watch in America® include:
Masood Syed Ali; Chicago, IL; Labor and Employment Law - Management
Mari Bryn Dowdy; Austin, TX; Product Liability Litigation - Defendants
Chaniece M. Hill; Chicago, IL; Medical Malpractice Law - Defendants
Mandy Kolodkin; Indianapolis, IN; Personal Injury Litigation - Defendants
Jeffrey M. Marchese; New York, NY; Litigation - Construction
Courtney C. McLaren; Memphis, TN; Personal Injury Litigation - Defendants
Benjamin J. Nellans; Chicago, IL; Commercial Litigation
Christopher P. Norton; Los Angeles, CA; Commercial Litigation
Nelson T. Rainey; Memphis, TN; Family Law; Health Care Law; Personal Injury Litigation - Defendants
Nicholas E. Richardson; Tampa, FL; Insurance Law
Jordan B. Rosenberg; Philadelphia, PA; Personal Injury Litigation - Defendants
Ian M. Sadler; Austin, TX; Commercial Litigation; Insurance Law
About Best Lawyers®
Best Lawyers® is an elite global network of legal professionals recognized through trusted, peer-reviewed distinction. For over four decades, its Purely Peer Review® methodology has upheld the principle that recognition should be earned through the opinions of fellow attorneys, not marketing influence or paid listings. Each year, millions of confidential evaluations are collected worldwide, contributing to one of the legal industry's most rigorous and trusted vetting processes. Only about 5% of lawyers in the United States and 3% globally are recognized, reflecting the selectivity and credibility of the results. No fees are accepted for consideration or inclusion, maintaining the integrity and independence of all recognitions. For more information, visit: www.bestlawyers.com.
About Segal McCambridge
Segal McCambridge has built a reputation as a national law firm of accomplished trial attorneys for almost four decades. Founded in 1986, the firm has grown from a four-lawyer shop in Chicago to a firm with more than 20 offices nationwide. The firm routinely counsels and defends clients, including Fortune 500 companies, corporations, and individuals, across the United States in complex litigation matters including, but not limited to: asbestos, class action, construction, employment, environmental, food and beverage, insurance coverage and bad faith, life sciences, product liability, professional liability, technology and cyber risk, transportation, and warranty. For more information, visit: www.segalmccambridge.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
Four Kahana Feld Attorneys Selected to 2027 Southern California Super Lawyers® and Rising Stars Lists
August 16, 2026 —
Kahana FeldIRVINE, CA – Aug. 3, 2026 – Kahana Feld is pleased to announce that partners
Jason Feld,
Amir Kahana, and
Sharon Oh-Kubisch were selected to the 2027 Southern California Super Lawyers list, and attorney
Hannah Ellenhorn Bloom was selected to the 2027 Southern California Super Lawyers Rising Stars list.
Jason Feld was recognized in the area of Construction Litigation. He is a founding partner of Kahana Feld and focuses his practice on the defense of homebuilders, contractors, developers, and real estate professionals primarily in construction defect, general liability, insurance defense, construction accident, and real estate matters. He also represents government entities handling construction, premises liability, general liability, and environmental claims. He serves as panel counsel for many prominent insurance carriers, as well as personal counsel to several national and regional homebuilders, developers, and general contractors.
Read the full story...Reprinted courtesy of
Kahana Feld
Georgia HB 676: A Bill Property Owners and Contractors Should Watch
March 24, 2026 —
Robert Lafayette - The Construction SeytProperty owners, contractors, and others dealing with mechanics and materialmen’s liens in Georgia should keep an eye on
HB 676, which is currently making its way through the Georgia General Assembly. The bill aims to curb misuse of the lien process and provide additional remedies to those challenging a frivolous lien filing.
What HB 676 Would Do
HB 676 would add a new Code section (O.C.G.A. § 44-14-366.6) to the mechanics and materialmen’s lien statutes. If a lien is filed “without substantial justification or that is not made in good faith or that is made with malice or a wrongful purpose,” this new Code section would impose a fine of $1,500 per lien on the lien claimant, in addition to any attorney’s fees or court costs incurred by the party challenging the lien.
Read the full story...Reprinted courtesy of
Robert Lafayette, Seyfarth Shaw LLPMr. Lafayette may be contacted at
rlafayette@seyfarth.com
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
