CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - MONDAY, OCTOBER 5, 2026

Nordic data center

The Nordics are Europe's next data center hub, and Google's 13-billion-euro investment in Finland shows why.

Nordics Are Europe’s Next Data Center Hub

October 5, 2026
Aarni Heiskanen - AEC Business

On September 9, 2026, Google announced its largest single investment in Europe. The company commits at least €13 billion to Finnish data centers and energy infrastructure in 2027 and 2028, expanding the existing Hamina campus and adding three new sites in Kajaani, Muhos, and Vaala. For the construction sector, this is great news: thousands of hectares, dozens of buildings, and a construction program that will extend well beyond the two-year investment window.

Four Sites, One Regional Cluster
Google is not a newcomer in Finland. Back in 2009, it converted a former paper mill in Hamina into a seawater-cooled data center. It has invested around €4.5 billion there over 15 years, and the site’s waste heat already feeds Hamina’s district heating network. The new program shifts the center of gravity north, to the border of North Ostrobothnia and Kainuu.

Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Reprinted courtesy of Aarni Heiskanen, AEC Business

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CDJ NEWS THIS WEEK



Wisconsin Supreme Court building

Cincinnati informed the insureds that the gap was a construction defect, and coverage was denied for the repair of the gap based upon the policy’s Construction Defect Exclusion.

Wisconsin Supreme Court Finds Coverage Under Ensuing Loss Provisions

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

Reversing the trial court’s grant of summary judgment to the insurer, the Wisconsin Supreme Court determined that genuine issues of material fact existed on whether ensuing losses as defined in the policy were covered. Cincinnati Ins. Co. v. Ropicky, 2026 Wisc. LEXIS 302 (Wis. July 7, 2026).

The insured suffered damage during a storm on May 11, 2018, when rainwater poured into the home. The insureds gave notice to their insurer, Cincinnati. Upon inspection, Cincinnati determined that water intrusion resulted from multiple construction defects in the home. In the front of the home, water entered through a gap in the stone veneer. The inspector also concluded that the damage from rainwater was not just from the May 11, 2018, storm, but damage had occurred from prior storm events.

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

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

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Person holding umbrella over model house

One of the fundamentals that is commonly misunderstood and overlooked—but which is absolutely critical to the intended operation of insurance coverage—is what is commonly known as the “separation of insureds.”

Emerging Issues in Construction CGL Insurance Part 2: The Separation of Insureds and Additional Insured Interests

September 29, 2026 — Eric M. Clarkson - SDV Fenchurch

Many coverage disputes hinge on first principles—the fundamentals of insurance —rather than the minutiae. Unfortunately, the basic anatomy of insurance policies can get lost sometimes when parties are laser-focused on a particular term or set of circumstances. This is true not just in disputes, but also when writing coverage. One of the fundamentals that is commonly misunderstood and overlooked—but which is absolutely critical to the intended operation of insurance coverage—is what is commonly known as the “separation of insureds.”

The “separation of insureds” is the concept that each “insured” under a policy are referred to and treated differently, and most of all that the distinctions matter. The concept is usually included as a condition in the policy. It embodies the requirement that the policy applies to each insured distinctly from how it applies to other insureds. The ISO Form CGL policies specifically state that they apply “[s]eparately to each insured against whom a claim is made or ‘suit’ is brought.” The separate and distinct treatment of insureds is more critical in construction operations than anywhere else. This distinction is essential to ensure coverage works as intended, especially when contracted operations are involved, because the policy must insure the subcontractor that purchased the policy, the general contractor who hired the subcontractor, and the owner that hired the general contractor. Even small modifications can easily frustrate the intent of the parties.

Mr. Clarkson may be contacted at eric.clarkson@sdvfenchurch.us

Reprinted courtesy of Eric M. Clarkson, SDV Fenchurch

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Establish Credibility

Credibility matters. Here’s another example involving a delay claim on public private partnership delivery method.

Credibility Matters…Even in Delay Claims

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

Credibility matters. Here’s another example involving a delay claim on public private partnership delivery method.

The project agreement required claims to be tried by a hearing examiner. The public private partnership developer (for lack of a better term) submitted delay claims that it contended were caused by Miami-Dade County. The hearing examiner awarded the developer delay time and compensation. On appeal, the County argued that the delays awarded by the hearing examiner were concurrent critical path delays with other delays caused by the developer’s team (the developer’s contractor). This was demonstrated by the fact that in an attempt to mitigate the County delay, the contractor’s incorporated a schedule fragnet into its schedule to mitigate delay that showed the critical path was driven by events deemed caused by the contractor. This was also reported in the contractor’s monthly updates. The developer argued that its mitigation plan did not work and, thus, the schedules showed a hypothetical delay caused by the contractor when, in actuality, it was the County-caused delay that drove the critical path. The hearing officer agreed with the contractor.

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Lady law next to gavel

Los Angeles Partner Tony Sonnett recently obtained a highly favorable verdict for his property owner client in an admitted liability case in which the plaintiff had asked for $34.5 million, with a jury awarding just $75,000.

Tony Sonnett Secures Highly Favorable Verdict for Client in Admitted Liability Case in Which Plaintiff Sought $34.5M

September 29, 2026 — Lewis Brisbois

Los Angeles Partner Tony Sonnett recently obtained a highly favorable verdict for his property owner client in an admitted liability case in which the plaintiff had asked for $34.5 million, with a jury awarding just $75,000.

The plaintiff, who was a tenant at one of the client’s rental properties, was injured in October 2020 as he was attempting to close the heavy metal blinds that were affixed to the 12-foot floor-to-ceiling windows of the property. The blinds and their heavy metal covering detached from the wall and fell on the plaintiff’s head, causing him to suffer a scalp laceration that required stitches.

Reprinted courtesy of Lewis Brisbois

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Tampa, Florida

A licensed contractor who knowingly or willfully violates this section is subject to disciplinary proceedings under Section 489.129, Fla. Stat. Available sanctions include fines up to $10,000 per violation, required restitution, probation, suspension, or revocation of the contractor’s license.

New Florida Law Adds Licensing Risk to Contractor/Subcontractor Payment Disputes

September 29, 2026 — Brett J. Moritz & Ali Heyat - Peckar & Abramson, P.C.

Effective July 1, 2026, Florida’s newly enacted Section 489.1295 of the Florida Statutes, titled “Prohibition Against Nonpayment,” requires licensed contractors to timely compensate subcontractors and suppliers for labor, services, or materials. Enacted as part of Senate Bill 290 (Ch. 2026-3, Laws of Fla.), the statute adds a new basis for instituting disciplinary proceedings against a contractor’s license if a payment is knowingly or willfully withheld.

While this is not a sweeping overhaul of Florida construction payment laws by any means, contractors should be aware that nonpayment disputes with subcontractors and suppliers may carry potential licensing consequences.

Reprinted courtesy of Brett J. Moritz, Peckar & Abramson, P.C. and Ali Heyat, Peckar & Abramson, P.C.

Mr. Moritz may be contacted at bmoritz@pecklaw.com
Mr. Heyat may be contacted at aheyat@pecklaw.com

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Testifying Construction and Building Industry Standard of Care Expert Witness

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Question mark on document

Not Every Job Is Worth Winning: Contract Risk Questions Contractors Should Ask Before They Bid

September 29, 2026 — Jack Mayo - ConsensusDocs

Introduction
Winning the work is not the same as winning the project, at least financially. Consider a contractor that commits to procure custom or long-lead materials before receiving complete construction documents. Depending on the language of the contract, if the final design is altered after those materials have been ordered, the contractor may be left responsible for replacement costs, procurement delays, or both. Alternatively, a subcontractor that accepts a pay-if-paid provision without investigating the owner’s financing, or prematurely waives lien rights, potentially risks nonpayment for properly performed work.

Such concessions can quickly transform an apparently profitable project into a significant financial burden. A successful bid can therefore become an unsuccessful project if the contractor accepts contractual “red flags” without evaluating their consequences and the long-term financial impacts that they may have. The significance of each risk will depend on the project, the parties, the proposed contract, applicable law, and the contractor’s business objectives. Although not comprehensive, this article identifies several key considerations for that process to help mitigate certain risks.

Mr. Mayo may be contacted at jmayo@joneswalker.com

Reprinted courtesy of Jack Mayo, Jones Walker LLP

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Star Trophy

Snell & Wilmer is pleased to announce that five partners have been named to Utah Business’ 2026 “Legal Elite.”

Five Snell & Wilmer Partners Named to Utah Business’ 2026 Legal Elite

September 29, 2026 — Snell & Wilmer

SALT LAKE CITY – Snell & Wilmer is pleased to announce that five partners have been named to Utah Business’ 2026 “Legal Elite.” The annual recognition honors leading Utah attorneys who are making a meaningful impact in their respective areas of practice. Honorees are peer-nominated and selected by a panel of experienced legal and law enforcement professionals based on their legal knowledge, commitment to ethical standards, and professional achievements.

Wade R. Budge is a land use and real estate lawyer with significant experience advising developers and owners in all aspects of real estate development. He has negotiated entitlements for master planned communities, industrials projects, retail centers, office buildings, subdivisions, and mountain resorts throughout Utah. He also regularly represents clients in the use, acquisition, and disposition of real estate projects throughout the Western United States. Budge has advised developers in obtaining public incentives and using public finance tools, including tax increment financing, to facilitate new and redevelopment projects, and regularly advises clients with government relations matters involving state and local governments. Budge has negotiated public-private partnerships with dozens of local governments and with every one of the state’s development agencies, including the Point of the Mountain State Land Authority, the Military Installation Development Authority, and the Utah Fairpark Area Investment and Restoration District.

Reprinted courtesy of Snell & Wilmer

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AI heads all green except one red

The recent wave of "rogue AI" incidents should be a wake-up call for every business leader and risk manager paying attention.

Rogue AI — Is Your Company Prepared?

September 28, 2026 — Michael S. Levine - Hunton Insurance Recovery Blog

The recent wave of "rogue AI" incidents should be a wake-up call for every business leader and risk manager paying attention.

Recent accounts document a sobering reality: AI systems from multiple leading AI developers have each escaped controlled testing environments and caused real-world harm—compromising outside infrastructure, exploiting third-party vulnerabilities, and even canceling another person's reservation to help a user jump a waitlist. These aren't hypotheticals from a sci-fi movie. They happened this summer.

Mr. Levine may be contacted at mlevine@hunton.com

Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth LLP

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Five stars

The path to Best Lawyers® recognition is lengthy, centered on rigorous peer review and designed to reflect the professional grit and merit recognized by the field’s top attorneys.

Ahlers Cressman & Sleight PLLC Recognized by Best Lawyers 2027

September 28, 2026 — Ahlers Cressman & Sleight PLLC

Continuing the trend from last year, Ahlers Cressman & Sleight PLLC is excited to announce that thirteen members of our firm have received recognition from Best Lawyers® in America for 2027.

The Best Lawyers in America® has been an annual publication since 1983 and focuses on the top legal talent across the United States and the globe. Through its rankings, Best Lawyers® provides a comprehensive guide to legal representation for individuals and businesses alike. Over time, Best Lawyers® has been recognized as one of the leading publications for attorney achievements and references.

Reprinted courtesy of Ahlers Cressman & Sleight PLLC

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Law books

A federal judge in the Northern District of New York has struck down New York’s Climate Change Superfund Act.

Federal Court Strikes Down New York’s Climate Superfund Act: What It Means for the “Polluter Pays” Movement

September 28, 2026 — Amanda G. Halter, Ashleigh K. Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law Blog

A federal judge in the Northern District of New York has struck down New York’s Climate Change Superfund Act, ruling that the “polluter pays” climate law is preempted by federal law and “simply beyond the limits of state law.” The court concluded that the Clean Air Act (CAA) does not authorize New York’s compensation scheme, which calculates liability based on greenhouse gas (GHG) emissions attributable to worldwide fossil fuel extraction and refining. It separately held that any cost-recovery demand against a foreign producer would be preempted under the constitutional foreign affairs doctrine, which limits state intrusion into matters committed predominantly to the federal government. The court directed the parties to file a status report by September 14, leaving the form of further relief unresolved. In practical terms, the court has decided that the Act is preempted and cannot be enforced but has not yet determined the precise terms of its final order, including whether to formally enjoin its enforcement.

The decision in West Virginia v. James, Case No. 1:25-cv-00168 (N.D.N.Y. Aug. 31, 2026), issued by Chief U.S. District Judge Brenda K. Sannes, who was appointed by President Obama, marks the first judicial invalidation of a state climate superfund statute and carries significant implications for the climate superfund landscape and the three remaining lawsuits challenging these laws.

Reprinted courtesy of Amanda G. Halter, Pillsbury, Ashleigh K. Myers, Pillsbury and Jillian Marullo, Pillsbury

Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com

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Congratulations

" Thank you from the bottom of my heart. I am ready to get to work.” – Nicole Whyte

Nicole Whyte is the Newly Elected Secretary of the Orange County Bar Association

September 28, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

“I am deeply honored to serve as Secretary of the Orange County Bar Association. To everyone who supported me, endorsed me, encouraged me, shared my message, and cast a ballot, thank you.

I am profoundly grateful for your trust and confidence. Thank you from the bottom of my heart. I am ready to get to work.” – Nicole Whyte

Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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Symbols for AI Law

Construction’s biggest legal challenges have changed. Here’s what top attorneys from some of CE's Top 50 Construction Law Firms say contractors should prepare for next, from cost volatility to AI innovation and beyond.

Risk Reset: Concerns Top of Mind for Top Construction Law Firms

September 28, 2026 — David McMillin - Construction Executive

In the summer of 2025, contractors were consumed by one major issue: tariffs. Owners, builders and suppliers were trying to understand how shifting trade policy would affect bid pricing and ongoing projects. While those concerns have eased after a Supreme Court ruling, some of the industry’s top legal experts—all of whom practice at some of CE’s Top 50 Construction Law Firms—point to a different set of worries that are keeping their clients up at night and keeping their offices busy.

Inflation is not fading away, creating continued price challenges. Artificial intelligence is moving at a breakneck pace, offering potential time-saving benefits paired with major liability concerns. The federal government continues to make surprising policy changes, and contractors remain focused on managing financial risk across increasingly complex projects.

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

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Consulting Design and Architecture Expert Witness

Forensic Architect CA, AZ, NV, CO, TX, UT, FL, NM, OK - NCARB - National Council of Architectural Registration Boards

California Architectural Registration Board Supplemental Examination Commissioner

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Welcome to Vail Arizona

Mattamy Homes Opens Two New Communities at Rocking K in Vail, AZ

October 5, 2026 — Mattamy Homes

TUCSON, Ariz., Aug. 18, 2026 /CNW/ -- Mattamy Homes, North America's largest family-owned homebuilder, has opened two new neighborhoods in Rocking K, a growing master-planned community in Vail, Arizona. Alamar at Rocking K and Covena Pointe at Rocking K are now selling and offer a range of single-family homes for homebuyers seeking outdoor recreation, highly rated schools and scenic desert views.

"The success we've seen at Oasis at Rocking K demonstrates just how appealing this community has become for homebuyers across Southern Arizona," said Anjela Salyer, President of Mattamy Homes' Tucson Division. "With Oasis nearing completion and Alamar and Covena Pointe now open, we're excited to offer even more opportunities for families, professionals and empty nesters looking to call Rocking K home."

Located within minutes of one another, Alamar and Covena Pointe each offer a distinct living experience while benefiting from the amenities and lifestyle available throughout Rocking K.

About Mattamy Homes
Mattamy Homes is the largest family-owned homebuilder in North America, with more than 48 years of operations history across the United States and Canada. Every year, Mattamy helps more than 8,000 families realize their dream of homeownership. In the United States, the company is represented in 11 markets: Dallas, Charlotte, Raleigh, Phoenix, Tucson, Jacksonville, Orlando (where its U.S. head office is located), Tampa, Sarasota, Naples and Southeast Florida. In Canada, its communities stretch across the Greater Toronto Area, Ottawa, Calgary and Edmonton. Visit mattamyhomes.com for more information.

Market solutions meeting

ENR's Top 250 International Contractors Dig Into Market Solutions

October 5, 2026 — Emell D. Adolphus & Jonathan Keller - Engineering News-Record

A complex market yields competitive solutions, according to comments from this year’s ENR Top 250 International Contractors. Amid intensifying geopolitical instability, supply chain disruptions, shifting construction costs and weather-related schedule delays amplified by climate change, contractors say proactive risk mitigation is keeping many projects in play—as evidenced by a 9.7% rise in total revenue for Top 250 companies last year, from $501.2 to $550.6 billion. Yet as economic uncertainty puts profitability of some projects under increased pressure, contractors say strengthening local relationships is more important now than ever.

Reprinted courtesy of Emell D. Adolphus, ENR and Jonathan Keller, ENR

Mr. Adolphus may be contacted at adolphuse@enr.com
Mr. Keller may be contacted at kellerj@enr.com

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Lawsuit

WTW Sues Lockton After 18 Construction Insurance Brokers Jump Ship

October 5, 2026 — Bryan Gottlieb - Engineering News-Record

Willis Towers Watson sued rival insurance broker Lockton Aug. 24 after 18 members of the former's construction practice resigned within 44 minutes and joined the competitor, alleging that 13 client accounts began moving immediately afterward.

Mr. Gottlieb may be contacted at gottliebb@enr.com

Reprinted courtesy of Bryan Gottlieb, Engineering News-Record

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Seminar

13th Annual Northwest Insurance Law Seminar

October 5, 2026 — Beverley BevenFlorez – CDJ Staff

This two-day event “is designed to provide practitioners and insurance professionals with an update on new developments affecting the insurance industry in the Pacific Northwest.” The conference is relevant “to anyone associated with the insurance industry, particularly those involved in insurance claims.” In addition, the event “will feature attorneys from Washington, Oregon, and Idaho with a range of experience in representing insurers and policyholders and will include timely discussions on insurance cases that should not be missed.”

October 27th-28th, 2026
Royal Sonesta Portland Downtown
506 SW Washington St
Portland OR, 97204

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BJ's Roof Collapses as New Jersey Floods; NYC Streets Under Water | NBC New York

The sheer weight of Monday’s rain caused a wholesale store’s roof to collapse in New Jersey. Flooded streets were too much for some drivers in New York. The weather pains followed an already stormy weekend. NBC New York’s Chris Glorioso, Adam Harding, Gus Rosendale and Lynda Baquero report.

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Video Captures Laguna Beach Cliff Collapsing Near Lookout

A section of a Laguna Beach cliff collapsed near a popular coastal lookout, and video captured by a local artist shows the moments leading up to the dramatic rockslide, KTLA 5 News reported.

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