CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, JUNE 30, 2026

Illustration of person choosing path

A construction contract’s forum selection clause names the place for the fight nobody plans to have, and where that fight happens can shape how it goes.

Location, Location, Location — But Which One? The Few Words in Your Construction Contract that Pick Where You Fight

June 29, 2026
Brad Sands - ConsensusDocs

Most professionals know the old real estate line: location, location, location. It turns out to be just as true for construction contracts as it is for property.

Consider a recent case involving a project owner that hired two design firms for a project. When issues arose during construction, the owner sued the design firms in state court in Brazoria County, Texas, pursuant to the forum selection clause in the parties’ contracts. The defendants then removed the case to the federal district court in Galveston, a courthouse in a different county. But the owner wanted the case back in Brazoria County state court. Whether it got its wish came down to two words in the contract: “situated in.” This article is about words like those.

A construction contract’s forum selection clause names the place for the fight nobody plans to have, and where that fight happens can shape how it goes. This article explains why the wording in your forum selection clause deserves careful reading before you sign a construction contract. It is not a deep dive into the mechanics of federal removal jurisdiction, and it is not an academic comparison of the terms “forum” and “venue.” Instead, it is a practical look at how courts actually read these clauses, so the location of a future fight is the one you intended.

Mr. Sands may be contacted at bsands@joneswalker.com

Reprinted courtesy of Brad Sands, Jones Walker, LLP

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CDJ NEWS THIS WEEK

Woman pointing to her watch

The court found that a six-month delay in reporting damage from wind did not comply with the policy’s notice requirements.

Late Notice Bars Insured’s Claim for Wind Damage

June 29, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The court found that a six-month delay in reporting damage from wind did not comply with the policy’s notice requirements. Touchmark Hotel Group, LLC v. Mt. Hawley Ins. Co., 2026 U.S. Dist. LEXIS 61910 (S.D. N. Y. March 24, 2026).

A storm caused damage to Touchstone’s hotel on January 4, 2023. Touchstone’s corporate representative, Rohit Patel, testified that he was not at the property on the day of the storm. In a telephone call the next day, the manager of the property reported to Patel that he observed detached shingles from the roof the hotel in the parking lot. Patel testified that he did not file a claim at that time because Touchmark’s employees did not detect any water leakage in the building and because he did not believe that the cost of the damage from the storm would exceed the policy’s deductible.

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

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

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Contracts

The Fourth District Court of Appeals made clear that the statutory conditional payment bond legend stamped on the top of the bond means NOTHING without a valid pay-if-paid (or pay-when-paid) clause to back it up.

Conditional Payment Bond Consideration-Make Sure There Is Pay-If-Paid Provision

June 29, 2026 — David Adelstein - Florida Construction Legal Updates

If a general contractor is going to have a conditional payment bond, it needs to ensure it subcontracts contain pay-if-paid or pay-when-paid provisions. This conditional payment language in subcontracts is the general contractor’s defense that it doesn’t have to pay a subcontractor UNTIL owner has paid the general contractor for the subcontractor’s work.

The general contractor (and the surety) can look at the conditional payment bond with the s. 713.245 legend stamped on its face designating the conditional nature of the bond, and assume the conditional structure is locked in against the bond: no payment from the owner, no obligation to the subcontractors under the bond. But what happens when the subcontracts contain no express conditional payment language despite having a valid conditional payment bond?

Mr. Adelstein may be contacted at dma@kirwinnorris.com

Reprinted courtesy of David Adelstein, Kirwin Norris

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Homeowners Association

The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804.

Arizona Court of Appeals Clarifies Homeowners Association Open Meeting Requirements

June 29, 2026 — Jill Casson Owen, Benjamin J. Hawkins & Stephen Wright - Snell & Wilmer

A Z N H Revocable Trust v. Sunland Springs Village Homeowners Association, No. 1 CA-CV 25-0424 (Ariz. Ct. App. Apr. 28, 2026)

OVERVIEW
The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804. The decision reinforces the legislative policy favoring transparency in association governance, bringing association meeting requirements more in line with the open meeting standards applicable to public bodies under A.R.S. § 38-431 et seq. (Arizona’s Open Meeting Law).

KEY HOLDINGS
1. All Voting and Formal Actions Must Occur in Open Meetings
The Court affirmed that association boards cannot vote or take formal action during closed (executive) sessions. Under A.R.S. § 33-1804(A), associations may close portions of meetings only for “consideration” of certain enumerated topics, such as legal advice, pending litigation, or personal/financial information about individual members. The Court interpreted “consideration” to mean discussion and deliberation, not voting. The Court noted that dictionaries define “consider” as “spending time thinking about a possibility” and “formulating an opinion,” which are processes that precede formal action. This interpretation mirrors how Arizona’s Open Meeting Law (A.R.S. § 38-431.03(D)) prohibits public bodies from voting in executive session.

Reprinted courtesy of Jill Casson Owen, Snell & Wilmer, Benjamin J. Hawkins, Snell & Wilmer and Stephen Wright, Snell & Wilmer

Ms. Owen may be contacted at jowen@swlaw.com
Mr. Hawkins may be contacted at bhawkins@swlaw.com
Mr. Wright may be contacted at swright@swlaw.com

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Tijuana River Valley

Stantec/PCL design-build team responds with rapid expansion of San Diego County's South Bay Plant.

Research Illuminates Pollution Problem in Tijuana River Valley

June 29, 2026 — Jeff Yoders - Engineering News-Record

The Tijuana River watershed between southern California and northern Mexico has been the epicenter of an environmental and public health crisis for more than two decades. Since October 2023 alone, more than 31 billion gallons of raw sewage and polluted water have flowed into the U.S. and, eventually, the Pacific Ocean.

Mr. Yoders may be contacted at yodersj@enr.com

Reprinted courtesy of Jeff Yoders, Engineering News-Record

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Congratulations

Hunton is pleased to announce that its insurance coverage practice was recognized nationally for Insurance: Dispute Resolution – Policyholder in the recently released 2026 Chambers USA guide.

Chambers USA Recognizes Hunton’s Insurance Coverage Practice in 2026 Guide

June 29, 2026 — Hunton Insurance Recovery Blog

Hunton is pleased to announce that its insurance coverage practice was recognized nationally for Insurance: Dispute Resolution – Policyholder in the recently released 2026 Chambers USA guide. The team also received state rankings in Florida (Insurance: Dispute Resolution), Georgia (Insurance), the District of Columbia (Insurance: Policyholder), and Massachusetts (Insurance).

In addition to the insurance team’s group recognition across multiple states, the 2026 guide included individual rankings for Lorelie “Lorie” S. Masters (USA Nationwide and District of Columbia), Latosha M. Ellis (District of Columbia), Michael S. Levine (District of Columbia), Koorosh “KT” Talieh (District of Columbia), Walter J. Andrews (Florida), Andrea DeField (Florida), Cary D. Steklof (Florida), Lawrence J. Bracken II (Georgia), and Geoffrey B. Fehling (Massachusetts).

Reprinted courtesy of Hunton Andrews Kurth LLP

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California Homes

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.

Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law

June 29, 2026 — Brenda Radmacher - The Construction Seyt

Daily 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.

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

Reprinted courtesy of Brenda Radmacher, Seyfarth Shaw LLP

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Construction workers on site

This article focuses on the Wage Theft and Prevailing Wage concepts in the bill that directly relate to the construction industry.

Connecticut Expands Construction Wage-Theft Liability and Prevailing Wage Recordkeeping Requirements

June 29, 2026 — Anand Gupta & Guest Contributor - Construction Law Zone

This post was co-authored by Labor + Employment group lawyer Christopher Costain, Hayden Eckblom (Summer Intern), and Pasqualina Fox-Mina (Summer Associate). Hayden and Pasqualina are not admitted to practice law.

On May 11, 2026, Connecticut Governor Ned Lamont signed into law Public Act 26-12, a wide-ranging bill centered around employee rights. Our colleagues in Robinson+Cole’s Labor, Employment, Benefits + Immigration group recently published a legal update summarizing the key components of Public Act 26-12. Here, we focus on the Wage Theft and Prevailing Wage concepts in the bill that directly relate to the construction industry.

Wage Theft
With exceptions for public works and small residential projects, general contractors will be jointly and severally liable for any unpaid wages owed to an employee of a subcontractor of any tier on private construction projects, beginning with contracts entered into on or after January 1, 2027. As we know, there is a separate regime for public works projects involving payment bonds.

Mr. Gupta may be contacted at agupta@rc.com

Reprinted courtesy of Anand Gupta, Robinson & Cole LLP

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Gold Star

Lafayette Managing Partner Jenny Michel has been named to Acadiana Profile magazine’s 2026 Top Lawyers list for Insurance Law.

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.

Reprinted courtesy of Lewis Brisbois

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Data Center Under Construction

This article details customized considerations for drafting, negotiating and administering data center design and construction agreements.

A Customized Approach to Data Center Construction

June 29, 2026 — James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law Blog

Data center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions.

Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements.

Reprinted courtesy of James P. Bobotek, Pillsbury, Arielle L. Murphy, Pillsbury and Robert A. James, Pillsbury

Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com
Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com

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Coworkers holding up trophy

Gordon Rees Scully Mansukhani has once again been recognized by Chambers USA, a prestigious directory of the country’s top law firms.

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.

Reprinted courtesy of Gordon Rees Scully Mansukhani

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Confetti celebration

Chambers and Partners is an independent professional legal research company operating across 200 jurisdictions, delivering detailed rankings and insight into the world's leading lawyers and law firms.

Traub Lieberman Recognized in the 2026 Edition of Chambers USA

June 29, 2026 — Traub Lieberman

In the 2026 edition of Chambers USA, Traub Lieberman has been awarded rankings in the following categories:

Illinois – Insurance: Dispute Resolution: Insurer
In the Chambers research, clients noted: "The team are technically very strong, responsive, and on top of their cases."

Florida – Insurance: Dispute Resolution: Insurer
In the Chambers research, clients noted: "Traub Lieberman Straus & Shrewsberry distinguishes itself through a combination of deep subject-matter expertise, responsiveness, and practical risk-management orientation." Commenters went on to say: “The team has deep knowledge of Florida property insurance statutes, regulations and case law, enabling effective handling of disputes, appeals and third-party litigation."

Reprinted courtesy of Traub Lieberman

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Telecommunications installation

ABC Minnesota/North Dakota creates first-of-its-kind program for telecommunications installer safety training.

New Law Prompts ABC Minnesota/North Dakota to Design New Telecommunications Safety Training Program

June 29, 2026 — Grace Calengor - Construction Executive

On the first day of the year, a Minnesota law requiring installers of underground telecommunication infrastructure broadband, fiber or phone lines (when projects utilize directional drilling, and/or work is being conducted within 10 feet of existing utilities) to undergo a 40-hour certification went into effect.

Originally passed in mid-2024 and proposed to go into effect in July 2025, the law’s requirements were postponed until January 2026, giving ABC Minnesota/North Dakota—in partnership with NCCER and the Minnesota Cable Communications Association—time to roll out their Safety Qualified Underground Telecommunications Installer training program, which would ensure the workforce of their contractor members were certified.

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

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Consulting Design and Architecture Expert Witness

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Handshake agreement

Berkshire Hathaway to Buy Taylor Morrison for $6.8 Billion

June 29, 2026 — Paige Smith & Alexandre Rajbhandari – Bloomberg

Berkshire Hathaway Inc. will acquire Taylor Morrison Home Corp. in an all-cash deal worth about $6.8 billion, the first major purchase under chief executive Greg Abel and a vote of confidence in the US housing market.

The offer of $72.50 per common share represents a 24% premium to the home builder’s latest closing price on Friday. It’s the largest deal since Berkshire bought Occidental Petroleum Corp.’s petrochemical business in January.

Reprinted courtesy of Paige Smith, Bloomberg and Alexandre Rajbhandari, Bloomberg

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Happy construction workers

Construction Backlog, Contractor Confidence Outpace Year-Ago Levels in March

June 29, 2026 — ABC - Construction Executive

WASHINGTON, April 14—Associated Builders and Contractors reported that its Construction Backlog Indicator rose to 8.6 months in March, according to an ABC member survey conducted March 23 to April 6. The reading is up 0.5 months from February and up 0.1 months from March 2025.

View ABC’s Construction Backlog Indicator and Construction Confidence Index for March. View the full Construction Backlog Indicator and Construction Confidence Index data series.

The 15% of ABC member contractor respondents under contract to perform work on data centers had significantly longer backlog (10.6 months) than the 85% of contractors who are not (8.3 months).

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

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Businessman with umbrella symbolizing coverage

Additional Insured May Pursue Coverage and Contractual Indemnity

June 29, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The appellate court affirmed a party’s right to pursue both coverage as an additional insured while also seeking to enforce a contractual indemnity claim. Daniello v. J.T. Magen & Co., Inc., 2026 N.Y. App. Div. LEXIS 1994 (N.Y. App. Div. March 31, 2026).

The lower court granted defendant/third party defendant L&K Partners, Inc.’s motion for leave to reargue its prior motion for summary judgment against third party defendant United States Information Systems, Inc. (USIS, Inc.) on its contractual and common-law indemnity claims, and, upon re-argument, granted the motion. USIS appealed.

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

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

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Webinar

Construction Law in Florida Seminar

June 29, 2026 — Beverley BevenFlorez – CDJ Staff

Attendees of this two-day seminar “will learn about industry trends, including what to avoid and what to embrace." Key issues to be discussed include “the variety of industry-standard contract forms; insurance products and how they relate to the allocation of risks; administration of contracts and management of issues that arise during the course of a construction project; performance and payment bonds and surety conventions employed when a project sours; and dispute resolution procedures.” This event will be a live webcast from Miami, Florida.

September 29th-30th, 2026
Virtual Event

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Investigators Reveal Technical Findings on the Cause of the Surfside Collapse

Nearly five years after the disaster at the Champlain Towers South in Surfside, federal investigators released their technical findings on what caused the collapse of the building that killed 98 people. NBC6’s Jamie Guirola reports.

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Trump Cancels Signing of Bipartisan Housing Bill Until His SAVE America Act Is Passed

President Donald Trump said Wednesday he is putting off signing a bipartisan housing reform bill until Congress passes his SAVE America Act. ABC News' Karen Travers reports.

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