CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, NOVEMBER 10, 2026

Inspector next to homeowner

HOA Tip: Document the Details. A clear record starts when a problem is reported.

The Leak Was Repaired. Why Is It Back? What California HOA Boards Should Document Next

November 9, 2026
The Naumann Law Firm, PC

A resident reports water staining near a window. The HOA arranges a repair, the area dries, and the complaint is closed. Months later, the stain returns. Then another resident reports a similar problem elsewhere in the building.

At The Naumann Law Firm, we encourage HOA boards and property managers to pay attention to that sequence. A returning leak does not automatically mean the building has a construction defect. It does mean the board needs a clear record of what happened, what was repaired, and what changed afterward.

Start With the History, Not Just the New Stain
When a leak returns, the latest photograph tells only part of the story. Pull together the earlier maintenance request, inspection notes, photographs, repair proposal, invoice, and any messages from the resident or contractor.

Then ask:

  • Was the leak reported in the same location before?
  • What did the contractor identify as the cause?
  • What work was completed, and when?
  • Did the repair address the source of the water or only the visible damage?
  • Have other units or common areas experienced similar symptoms?

These details help a board understand whether it is dealing with a new problem, an unsuccessful repair, or a pattern that needs a broader investigation.

Reprinted courtesy of The Naumann Law Firm, PC

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CDJ NEWS THIS WEEK



Mechanic's lien

In Galiant, the Court of Appeals held that a mechanic’s lien is not necessarily excessive merely because (1) the lien amount includes costs the contractor has not yet paid, or (2) the lien amount is subsequently reduced after recording.

You Filed a Mechanic’s Lien. Then You Discovered a Mistake. Now What?

November 9, 2026 — Adam Hall - Colorado Construction Litigation Blog

Recording a mechanic’s lien is an important tool for Colorado contractors seeking payment for labor, materials, and services furnished on construction projects. But what happens when a contractor records a lien and subsequently discovers that the amount claimed is incorrect? Can the contractor amend the lien to reduce the amount owed, even after the statutory deadline for recording or amending the lien has passed? Or does the original mistake render the lien unenforceable?

The Colorado Court of Appeals addressed these questions in Galiant Homes, LLC v. Herlik, 2025 COA 3, providing important guidance for contractors recording mechanic’s and materialman’s liens in connection with construction projects.

Mr. Hall may be contacted at ahall@hhmrlaw.com

Reprinted courtesy of Adam Hall, Higgins, Hopkins, McLain & Roswell, LLC

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Clock

The property had two structures, a single-family home and a rear structure, which contained a small apartment.

Suit Against Broker Untimely Filed

November 9, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The insured’s suit against the broker alleging insufficient coverage was dismissed as untimely. Elite Rental Properties, LLC, et al. v. Nautilus Ins. Co., et al., 2026 La. App. LEXIS 1704 (Aug. 26, 2026).

Elite retained Southern General Agency (SGA) and The Lincoln Agency, LLC to procure insurance coverage for multiple properties. SGA/Lincoln obtained a property insurance policy from Nautilus. The property had two structures, a single-family home and a rear structure, which contained a small apartment. Elite claimed that it understood the policy to cover both structures. On September 9, 2022, a fire caused catastrophic damage to the rear structure and exterior damage to the primary structure. Nautilus denied payment for the rear structure, claiming it was not covered in the policy.

Mr. Eyerly may be contacted at te@hawaiilawyer.com

Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert

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Idaho Supreme Court Building

For developers forming or using a CID, the decision provides welcome certainty on the durability of CID bonds, reimbursement structures, and the scope of qualifying community infrastructure.

Idaho Supreme Court Delivers First Authoritative Construction on the Community Infrastructure District Act

November 9, 2026 — Sara M. Ajeti & Tara Martens Miller - Snell & Wilmer

On February 12, 2026, the Idaho Supreme Court issued its first authoritative decision construing the Community Infrastructure District Act (CID Act), Idaho Code §§ 50-3101 to 50-3121, in Doyle v. Harris Ranch Community Infrastructure District No. 1. The opinion resolves several issues of first impression — what qualifies as reimbursable “community infrastructure,” how strictly the 60-day statute of limitations bars challenges to a CID’s formation and bond authority, and whether a CID is legally distinct from its creating municipality. For developers forming or using a CID, the decision provides welcome certainty on the durability of CID bonds, reimbursement structures, and the scope of qualifying community infrastructure.

Background
The CID Act allows a developer to petition Idaho cities and counties to form special-purpose taxing districts that finance community infrastructure ahead of development and allow growth to “pay for itself.” I.C. § 50-3101(1)(a)–(c). “Community infrastructure” is broadly defined to include roads, sidewalks, parks, sewers, stormwater facilities, and other public facilities that have a “substantial nexus” to, and directly or indirectly benefit, the district. I.C. § 50-3102(2). A CID is formed upon petition by two-thirds of residents or all landowners within a proposed district to the governing city or county. Once formed, CIDs are political subdivisions with only the power the Act expressly grants, including the powers to contract, finance infrastructure, levy property taxes, and incur debt through general obligation bonds. I.C. § 50-3105(1). Qualified electors within the district must approve a ceiling bond amount by a two-thirds vote; once approved, the district board may issue additional bond series without a further elector vote, notice, or hearing. I.C. § 50-3108(1)–(3).

Reprinted courtesy of Sara M. Ajeti, Snell & Wilmer and Tara Martens Miller, Snell & Wilmer

Ms. Ajeti may be contacted at sajeti@swlaw.com
Ms. Miller may be contacted at tmmiller@swlaw.com

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Blueprint

The trial court found that Pitt received the revised drawing, failed to timely review and incorporate the changes into its scope, and committed the first material breach of the subcontract.

The Drawing Changed. Did You Catch It? A Hard Lesson for Contractors About Revised Plans

November 9, 2026 — Matthew J. Devries - Best Practices Construction Law Blog

Every contractor has seen it. A revised drawing hits your inbox. You open the sheet, look for the clouds, figure out what changed, and move on. But what if something changed outside the cloud?

That seemingly simple question became a very expensive problem in Young Contracting/SE, Inc. v. Pitt Excavating, LLC, (Oct. 30, 2026), a recent Tennessee Court of Appeals decision involving a general contractor and its excavation subcontractor. The subcontract required Pitt to perform its work in accordance with the project drawings and specifications, “as amended from time to time.”

During the project, Young sent Pitt a revised drawing. Pitt’s owner testified that his practice was to look at the clouded areas because he understood those areas to identify what had changed. He explained that he presumed the rest of the drawing remained the same. Guess what? That assumption did not work out well.

Mr. Devries may be contacted at mdevries@buchalter.com

Reprinted courtesy of Matthew J. Devries, Buchalter

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Star trophy

Ball Janik LLP is pleased to announce that the firm has been recognized in the 2027 edition of Best Law Firms®.

Ball Janik LLP Recognized in 2027 Best Law Firms® Rankings

November 9, 2026 — Ball Janik LLP

Orlando, FL, November 5, 2026 – Ball Janik LLP is pleased to announce that the firm has been recognized in the 2027 edition of Best Law Firms®. The Best Law Firms® rankings are based on a rigorous research process that considers client and professional-reference feedback, firm-provided information, lawyer evaluations, and interviews with law-firm leaders.

"Being recognized among the nation's top law firms is a meaningful honor and reflects our commitment to serving community associations, commercial property owners, and businesses across Florida in construction law and construction-related litigation," said James C. Prichard, Managing Partner of Ball Janik LLP. "Our attorneys and staff work tirelessly to provide strategic, results-driven representation. We share this honor with our clients who keep us motivated to continue raising the bar."

Ball Janik LLP is featured in the 2027 edition of Best Law Firms® for the following rankings:

National Tier 2

  • Construction Law

National Tier 3

  • Litigation - Construction

Regional Tier 1

  • Orlando
    • Construction Law
    • Litigation - Construction

Regional Tier 2

  • Miami
    • Construction Law

Regional Tier 3

  • Miami
    • Litigation - Construction
  • Orlando
    • Real Estate Law

To learn more about Ball Janik LLP's recognition, visit the firm's Best Law Firms® profile.

About Ball Janik LLP
Ball Janik LLP is a Florida-based law firm offering construction defects, construction law, insurance recovery, and commercial litigation counsel, to its local and national clients. The firm was founded in 1982 and has expanded its capabilities, professionals, and geographic footprint. What started as a small firm focused on real property, land use, and litigation (known then as Ball Janik & Novack) has grown to a team of 70-plus attorneys and paralegals in five offices in Florida, with centuries of combined experience and capabilities. The firm has been recognized by Chambers USA, including for its construction law capabilities in Florida, U.S. News & World Report and Best Lawyers®, The Best Lawyers in America©, Super Lawyers, and Corporate International. Read more at www.balljanik.com.

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Two people shaking hands in front of mediator

Mediation offers a structured path for resolving construction conflicts, keeping control with the parties involved, not a judge.

Mediation in Construction Disputes: A Practical Guide

November 9, 2026 — Construction Executive

Mediation in construction disputes gives owners, general contractors, subcontractors, designers and other project participants a structured way to resolve conflict without asking a judge or arbitrator to decide the outcome. A neutral mediator facilitates negotiations, but the parties retain control over whether they settle and what the settlement terms will be.

For construction executives, mediation is most effective when treated as a business and project-management decision rather than simply another legal proceeding. Contract language, schedule impacts, cost documentation, insurance considerations, project relationships and the authority of the people attending the session can all affect whether mediation produces a workable resolution.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

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Congratulations

Peckar & Abramson, P.C. is pleased to announce that 20 attorneys from the firm’s New York and Boston offices have been selected for inclusion on the 2026 New York Metro and Massachusetts Super Lawyers® and Rising Stars lists.

Twenty Peckar & Abramson Attorneys Recognized by 2026 New York and Massachusetts Super Lawyers® and Rising Stars Lists

November 9, 2026 — Peckar & Abramson, P.C.

Peckar & Abramson, P.C. (P&A) is pleased to announce that 20 attorneys from the firm’s New York and Boston offices have been selected for inclusion on the 2026 New York Metro and Massachusetts Super Lawyers® and Rising Stars lists.

According to Super Lawyers, no more than five percent of attorneys in each jurisdiction are selected to the Super Lawyers list, while no more than 2.5 percent are recognized as Rising Stars.

Reprinted courtesy of Peckar & Abramson, P.C.

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People meeting over paperwork

The pre-claim assistance built into many professional liability policies can help firms address issues before they escalate.

Why Professional Liability Insurance Is Ticking Clock for AE Firms

November 9, 2026 — Jared Maxwell - Engineering News-Record

For architecture and engineering firms, professional liability insurance is a cornerstone of risk management. These policies are almost always written on a claims-made basis, making timely claims reporting one of the most critical—yet often overlooked—requirements for preserving coverage. In practice, how and when a firm reports a claim can have just as much impact as the claim itself.

ENR may be contacted at enr@enr.com

Reprinted courtesy of Jared Maxwell, Engineering News-Record

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Let's Celebrate

The Super Lawyers Rising Stars list is a prestigious honor awarded to no more than 2.5% of attorneys in each state and recognizes outstanding professional achievement early in their careers.

Meet BWB&O’s 2027 Super Lawyers Southwest Rising Stars, Ryan Leibel!

November 9, 2026 — Dolores Montoya - Bremer Whyte Brown & O’Meara, LLP

Please join us in congratulating BWB&O’s Arizona Associate Ryan Leibel on being named to the 2027 Super Lawyers Southwest Rising Stars list!

Ryan is being recognized for his work in General Litigation, marking an exciting professional milestone and reflecting his dedication to the practice of law.

Reprinted courtesy of Bremer Whyte Brown & O'Meara, LLP

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Additional insured

The agreement at issue was dated December 15-16, 2017 and the accident at issue occurred in 2018.

Federal Court Finds that Master Agreement Bestows Additional Insured Coverage

November 9, 2026 — Craig Rokuson - Traub Lieberman

In the recent case Triborough Scaffolding & Hoisting Servs. v. Sw. Marine & Gen. Ins. Co., 2026 U.S. Dist. LEXIS 226876, Judge P. Kevin Castel, who was also operating as finder of fact, held that a subcontractor master agreement covered a subcontractor’s work at a specific project, such that an obligation to name the prime contractor Triborough as well as the undefined Owner, bestowed additional insured coverage to Triborough and the Owner under policies issued to the subcontractor.

The agreement at issue was dated December 15-16, 2017 and the accident at issue occurred in 2018. The trial evidence includes testimony from both Triborough and the subcontractor that the agreement was intended to apply annually, and the subcontractor could not recall the parties ever signing a project-specific agreement. Further, Triborough assigned work to the subcontractor by telephone call or texts on several projects, and without a project-specific contract. Moreover, no other operative indemnity or insurance agreement between Triborough and the subcontractor, other than a backdated agreement that was not applicable. Finally, the court did not find plausible that the subcontractor would enter into an agreement meant only to cover the final two weeks of 2017, such that the agreement extended into work occurring in 2018.

Mr. Rokuson may be contacted at crokuson@tlsslaw.com

Reprinted courtesy of Craig Rokuson, Traub Lieberman

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Spotlights on stage

Ahlers Cressman & Sleight is pleased to announce their recognition in the 2027 edition of Best Law Firms®, ranked by Best Lawyers.

Ahlers Cressman & Sleight Is Pleased to Announce Our Recognition in the 2027 Edition of Best Law Firms®

November 9, 2026 — Ahlers Cressman & Sleight PLLC

Ahlers Cressman & Sleight is pleased to announce our recognition in the 2027 edition of Best Law Firms®, ranked by Best Lawyers. ACS received a Tier 1 ranking in Seattle for both Construction Law and Construction Litigation; and a Tier 2 national ranking in the same areas.

Best Law Firms® rankings are assessed through analyzing feedback provided by clients and professional references, information supplied by the firm, industry leader interviews, and lawyer evaluations collected through the Best Lawyers research process. For the 2027 edition, more than 110,000 client references were submitted as part of the Best Law Firms research process.

Reprinted courtesy of Ahlers Cressman & Sleight PLLC

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California state capitol building

Under AB 1198, updated prevailing wage rates may apply during construction to public works contracts awarded or advertised for bid after July 1, 2027 if the awarded value of the prime contract is $35 million or more.

Bid Today, Pay a Different Rate Tomorrow? California AB 1198 Changes Prevailing Wage Rules for Large Public Works Projects

November 9, 2026 — Heather Frisch & Brenda Radmacher - The Construction Seyt

Contractors and subcontractors bidding on California’s largest public works projects will soon face a new labor-cost risk: the wage rates they are required to pay may change after they submit their bids. California’s prevailing wage rules generally set the minimum pay for workers on public works projects based on the type of work and the project’s location. Under Assembly Bill 1198 (“AB 1198”), updated prevailing wage rates may apply during construction to public works contracts awarded or advertised for bid after July 1, 2027 if the awarded value of the prime contract is $35 million or more. On those projects, the wage rates that applied when the project was first advertised may not remain the same throughout the work.

For contractors pursuing infrastructure projects that take several years to complete, this is not just a payroll issue. A change in required wage rates can affect the cost of work already priced in a bid. Contractors will need to consider that possibility when estimating labor costs, setting aside funds for unexpected costs, obtaining subcontractor prices, and negotiating contract terms that address price increases or changes to the work. Those terms can determine whether the contractor or the public agency awarding the contract bears the additional cost. Contractors will also need processes in place to track wage changes and their effect on project costs.

Reprinted courtesy of Heather Frisch, Seyfarth and Brenda Radmacher, Seyfarth

Ms. Frisch may be contacted at hfrisch@seyfarth.com
Ms. Radmacher may be contacted at bradmacher@seyfarth.com

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Person betting with chips at casino

Berkshire’s Bet on US Housing Grows With Lennar Buying Binge

November 9, 2026 — Dina Katgara & Alex Rajbhandari - Bloomberg

Berkshire Hathaway Inc. has amassed a $2.2 billion stake in Lennar Corp., putting the conglomerate in position to overtake Vanguard Group Inc. as the homebuilder’s largest shareholder.

Reprinted courtesy of Dina Katgara, Bloomberg and Alex Rajbhandari, Bloomberg

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Magnifying glass over happy face

Cautious Optimism, Persistent Challenges: AEC Firms Feeling Positive Despite Challenges

November 9, 2026 — Construction Executive

Construction and architecture/engineering firms are working their way through 2026 with cautious optimism despite ongoing cost pressures, labor shortages and economic uncertainty, according to Grassi’s 2026 Construction and Architecture & Engineering Survey Report, which surveyed nearly 200 industry leaders across the U.S.

Just over half of respondents expect revenue growth this year, but most anticipate only modest gains, while nearly half expect backlog to remain unchanged. Firms are increasingly investing in technology and artificial intelligence to improve productivity, even as inflation, supply chain volatility and workforce challenges continue to weigh on operations. Succession planning has also become a growing priority as many companies prepare for leadership transitions.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

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Thumb down

Insured’s Motion to Dismiss Insurer’s Counterclaim Rejected as Premature

November 9, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The insured’s motion to dismiss the insurer’s counterclaim because it was redundant was dismissed as premature. Pulte Homes of New Mexico, Inc., 2026 U.S. Dist.. LEXIS 205627 (D. N. M. Sept. 11, 2026).

Pulte filed suit against several insurance companies seeking a declaration that it was an additional insured under each insurers’ policy and was entitled to a defense against underlying state claims. Pulte further alleged that it must be indemnified for damages arising out of the work or operations of defendants’ named insured subcontractors. Cincinnati Insurance Company (CIC) was one of the defendants named by Pulte.

Mr. Eyerly may be contacted at te@hawaiilawyer.com

Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert

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Seminar

ABA’s Forum on Construction Law 2027 Midwinter Conference

November 9, 2026 — Beverley BevenFlorez – CDJ Staff

The American Bar Association (ABA) presents their annual Midwinter Conference next February at the Westin St Francis in Union Square. The program, “Good Vibes, Better Outcomes: Advancing Collaboration and Mediation in Construction Disputes” will cover the mediation process. The event will feature how to draft contract clauses effectively, how to help clients avoid disputes, and also how to prepare for mediation. The program will also have networking opportunities.

February 3rd-5th, 2027
The Westin St Francis
335 Powell Street
San Francisco, CA 94102

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Powerful Storms Slam Millions on the East Coast

A new round of dangerous weather slammed the Northeast today, bringing torrential rain and flooding. This after record flooding in part of the south. NBC News’ Erin McLaughlin has more.

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El Niño Effect: How Climate Pattern Could Reshape California's Winter

Watch ABC7’s “El Niño Effect” to find out what researchers are forecasting and why communities are preparing now.

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