CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - WEDNESDAY, NOVEMBER 19, 2025

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The case underscores how critical it is to identify, document, and evaluate early signs of construction distress, because waiting for confirmation of a defect can mean the difference between a viable claim and one that is time-barred.

When “Normal Cracking” Isn’t So Normal: Parra v. Gillaspie Construction and the Two-Year Clock on Construction Defect Claims

November 18, 2025
David McLain - Colorado Construction Litigation Blog

In Michelle and Michael Parra v. Gillaspie Construction, Inc. and Johnson Excavation, Inc. (Colo. App. No. 18CA0800, Mar. 21, 2019), not selected for official publication, the Colorado Court of Appeals reaffirmed an essential principle for builders, homeowners, and insurers alike: under the Colorado Construction Defect Action Reform Act (“CDARA”), the statute of limitations begins to run when a homeowner first observes physical manifestations of a defect, not when the homeowner later learns what caused those problems or concludes they are “excessive.”

The case underscores how critical it is to identify, document, and evaluate early signs of construction distress, because waiting for confirmation of a defect can mean the difference between a viable claim and one that is time-barred.

Background: Cracks, Gaps, and Growing Concern
The Parras hired Gillaspie Construction and Johnson Excavation to build a custom home in Routt County. They moved in January 2010. Within the first year, they noticed cracks in walls, a kitchen backsplash pulling away, and flooring that was “[c]upping and gapping.” By 2013, additional cracking appeared in the office and hallway, gaps opened around the fireplace and hearth, and certain cabinet doors began to misalign.

Mr. McLain may be contacted at mclain@hhmrlaw.com

Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC

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CDJ NEWS THIS WEEK

Gavel on California flag

SB 440 appears to significantly reshape payment dynamics on California’s private construction projects, and its success in promoting timely payment and reducing disputes will depend on how effectively each party implements and adheres to these new processes.

California’s Fair Payment Act: What Every Owner, Developer, and Contractor Should Know About SB 440

November 18, 2025 — Matthew DeVries - Best Practices Construction Law

While most states have enacted various forms of prompt payment laws for construction projects, California Senate Bill 440, known as the Private Works Change Order Fair Payment Act, marks a pivotal change in how payment obligations related to change orders are handled on private construction projects. Signed into law on October 10, 2025 by Governor Newsom, its implementation will affect owners, developers, contractors, and subcontractors alike. Importantly, it sets clear standards for processing change-order claims, imposing decisive deadlines and remedies.

The Big Picture
SB 440, effective for private contracts beginning on January 1, 2026, establishes a formal claim resolution process for work stemming from change orders on private projects. Key provisions include:

  • A contractor or subcontractor may submit a claim (for a time extension or additional compensation) and the owner must provide a written statement within 30 days identifying disputed and undisputed portions.

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

Reprinted courtesy of Matthew DeVries, Buchalter

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The Supreme Court was recently tasked with determining whether the NEPA has evolved from a public disclosure law to a tool used to block projects altogether in Seven County Infrastructure Coalition v. Eagle County, Colorado.

Environmental Due Diligence - What's The Hold Up?

November 18, 2025 — W. Tyler Lloyd - The Dispute Resolver

Construction projects do not occur overnight. Regardless of project size, projects take anywhere from months to years to design, build, and complete. Perhaps one portion of the construction project that is always subject to criticism, particularly on large infrastructure projects, is environmental review and the applicability of environmental laws, requiring specific environmental thresholds, and the National Environmental Policy Act (“NEPA”). Contractors are well aware of the timeline and potential impacts that NEPA review might have on a project, and many contractors and national groups have expressed a desire to ensure that NEPA does not interfere with or altogether block the deployment of large infrastructure projects.

On federal funded or assisted projects, contractors must comply with strict environmental oversight because the project is tied to federal funding or federal agency accountability. Contractors must also comply with environmental and sustainability mandates under the Federal Acquisition Regulation (“FAR”). The FAR requires federal construction project contracts to include clauses concerning hazardous materials, emergency planning, waste reduction, environmental management systems, and greenhouse gas disclosures.

Mr. Lloyd may be contacted at tlloyd@stites.com

Reprinted courtesy of W. Tyler Lloyd, Stites and Harbison, PLLC

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Fine print

Remember, the language in contracts matter, including language uses in the prefatory Wherefore clauses.

The Prefatory Wherefore Clauses in Agreements Matter

November 18, 2025 — David Adelstein - Florida Construction Legal Updates

When drafting agreements, the language matters. This is because agreements are not intended to be construed in a vacuum. Sections of an agreement are not to be interpreted in isolation. Agreements are intended to be constructed in the context of the ENTIRE agreement. This is why there is tremendous value in the drafting of the agreement and the negotiation of the agreement. Neglecting this value can bring a large number of headaches, headaches that cost money and lead to undesirable consequences.

When drafting agreements, it has become routine to include prefatory clauses. Sometimes, these are known as the “Wherefore clauses,” that setup up the stage of the agreement before the numbered sections or paragraphs kick in. These Wherefore clauses show up in contracts and settlement agreements, and they matter.

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Meeting over contract

Those who do not amend their home improvement contracts for 2026 can be found to be in violation of contractors’ license law.

New Legislation Requires Changes to your California Home Improvement Contract for 2026

November 18, 2025 — William L. Porter - Porter Law Group

California Business and Professions Code 7159, first enacted in 2004, was intended as a consumer protection measure to protect homeowners hiring contractors for home improvement work. The legislation sought to meet this laudable goal by dictating the terms to be used in home improvement contracts. covering everything from mandatory contractual language, lists of documents to be included, legal warnings to be provided, dispute resolution procedures, dictating where to initial, where to sign and even font size.

The legislation unfortunately made it impossible to provide a homeowner with anything more than a complex multi-page legal document which many homeowners viewed with suspicion. The unintended consequence is that those contractors who violate the law and use a short but simple one or two-page, but illegal contract end up obtaining work. Those who follow the law and use the multi-page legally mandated contract end up losing customers because the contract is long, complex and frightening.

Mr. Porter may be contacted at bporter@porterlaw.com

Reprinted courtesy of William L. Porter, Porter Law Group

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Scaffold worker at sunset

The court held the policy’s Employer’s Liability Exclusion precluded coverage for the injured individual who was deemed to be an employee of the insured.

Employer’s Liability Exclusion Bars Coverage

November 18, 2025 — Tred R. Eyerly - Insurance Law Hawaii

The court held the policy’s Employer’s Liability Exclusion precluded coverage for the injured individual who was deemed to be an employee of the insured. Craft v. Access L.L.C., 2025 U.S. Dist. LEXIS 179794 (W.D. La. Sept. 2, 2025).

Charles Craft worked for FL Crane & Sons, Inc.. The general contractor of the project, Lemoine Company, LLC, hired FL Crane to do work on the project. Lemoine rented a crane from Morrow Equipment Company, LLC, and hired a crane operator from Skyhook Ops, LLC. Burlington was Skyhook’s insurer.

Craft claimed his left arm was injured while working atop a scaffolding when Skyhook caused the scaffolding system to be pulled apart when operating a crane.

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

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

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Snell & Wilmer's San Diego office has been selected as one of the 2025 “Best Places to Work” by the San Diego Business Journal.

Snell & Wilmer’s San Diego Office Recognized as One of the “Best Places to Work” by the San Diego Business Journal

November 18, 2025 — Snell & Wilmer

SAN DIEGO - Snell & Wilmer is pleased to announce that its San Diego office has been selected as one of the 2025 “Best Places to Work” by the San Diego Business Journal, ranking 2nd among the companies on the list in the Large Business category. This recognition highlights outstanding companies in the San Diego region that are setting trends and redefining the employee experience. The list is compiled from top local employers that participated in a detailed survey conducted by Workforce Research Group and were evaluated on leadership, corporate culture, communications, and much more.

“We are honored to be recognized as one of the Best Places to Work in San Diego and to rank second among the numerous companies in the region that fall into the Large Business category,” said Steffi Hafen, managing partner of Snell & Wilmer’s San Diego office. “This recognition reflects the culture of collaboration and opportunity we have cultivated in San Diego. I am incredibly proud of our team’s dedication to one another, to our clients, and to making a positive impact in the broader community.”

Reprinted courtesy of Snell & Wilmer

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Texting on cell

A competitor challenged the state's award of a highway service plaza contract.

Suffolk and MassDOT Texts Played Role in State Contract Rebid Controversy

November 18, 2025 — Richard Korman - Engineering News-Record

Two of the controversial text messages were sent on Dec. 10.
John Fish, CEO of Suffolk Construction Co., sent one early to Scott Bosworth, chief development officer for the Massachusetts Dept. of Transportation, about a problem with the Oyster Harbors Bridge near the Oyster Harbors Club on Cape Cod.

Mr. Korman may be contacted at kormanr@enr.com

Reprinted courtesy of Richard Korman, Engineering News-Record

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Business people with superhero capes

Each year, no more than 5 percent of the lawyers in the region (and 2.5 percent for Rising Stars) are selected by the research team at Super Lawyers to receive this honor.

Seven Kahana Feld Attorneys Selected to 2025 New York Metro Super Lawyers Lists

November 18, 2025 — Eva Paulson - Kahana Feld

NEW YORK - Oct. 30, 2025 - Kahana Feld is pleased to announce that Tim Capowski was included in the 2025 edition of New York Metro Super Lawyers and Sean Harriton, Rachael Marvin, Sarah Pavlini, Mariah Smith, Christopher Theobalt, and Sofya Uvaydov were included in New York Metro Rising Stars.

2025 New York Metro Super Lawyers
Tim Capowski was awarded for his work in Appellate Law. Capowski is a partner at Kahana Feld and chair of the firm’s National Appellate Litigation & Consulting Group. He has spent the better part of three decades at the forefront of the insurance defense bar. He has litigated hundreds of appeals and thousands of motions in state and federal and appellate courts throughout New York and around the country. He handles a variety of complex litigation including catastrophic property and casualty claims, construction defect, professional liability, labor and employment law, mass torts, insurance coverage, and more.

Ms. Paulson may be contacted at epaulson@kahanafeld.com

Reprinted courtesy of Eva Paulson, Kahana Feld

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Safety plans

Not all construction company safety plans are created equal - nor should they be.

So You Want to Build a Safety Plan

November 18, 2025 — Construction Executive

As unique and nuanced as each construction project, so are the safety needs of each company handling the project. To learn how to tailor a safety program to your company’s needs, Construction Executive sat down with Tony Foster, senior EHS director at Skanska. From how-tos on getting started, creating buy-in and keeping up to date on OSHA standards, to taking advantage of the latest safety technology, here is his insider knowledge:

What type of safety program is best for which kinds of businesses? (i.e. small vs. large firm; regional vs. national; architect and design vs. manufacturer; general contractor vs. subcontractor; etc.)
The approach to safety shouldn’t change by project, no matter how big or small. The most important task is the project, but also making the people who are working on the project feel like they are a part of the program and can ask questions about any concerns that they have. There needs to be visibility of leaders on the project, and an open line of communication when it comes to safety on the worksite.

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

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Public works contractors deserve clarity.

Should Post Contract Award Tariffs be Reimbursable? Why Public Works Contractors Deserve Clarity

November 18, 2025 — Brett M. Hill - Ahlers Cressman & Sleight PLLC

Public works contractors across Washington and the U.S. are grappling with a costly and unresolved question: when the federal government imposes new import tariffs after a contract has been awarded, do those tariffs entitle contractors to additional compensation?

The answer depends on the contract and the public agency. Some public works contracts tie relief directly to whether tariffs are considered “taxes.” Others frame their adjustment clauses more broadly, focusing on changes in law or government-imposed costs. For contractors, the distinction is critical.

Mr. Hill may be contacted at brett.hill@acslawyers.com

Reprinted courtesy of Brett M. Hill, Ahlers Cressman & Sleight PLLC

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Woman brainstorming wall ideas

To rebuild its devastated downtown, the city has a plan to tap local capital and small developers - an approach that might be a model for other Rust Belt towns.

Can Anyone Save Gary, Indiana?

November 18, 2025 — Zach Mortice - Bloomberg

On either side of the impeccably refined and classically domed City Hall and courthouse buildings that make up the largely vacant civic core of Gary, Indiana, are two stark white modernist buildings. Both were designed by Black architect Wendell Campbell, a founder of the National Organization of Minority Architects, and built in the 1980s, a time when the industrial city was reeling from job and population losses and desperate to rescue a downtown in full collapse.

One of them is a sports and fitness center that’s still in use, but the 83,000-square-foot Genesis Convention Center, built in 1981, has been empty since 2020. The city is currently weighing redevelopment or demolition; one idea has been to use the building’s blank white facade as a canvas for murals and public art. But in a city with at least 7,000 abandoned buildings, there’s no lack of alternative wall spaces.

Reprinted courtesy of Zach Mortice, Bloomberg

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ABOTA is a national association of experienced trial lawyers and judges who are dedicated to preserving the civil jury trial as well as educating and training trial lawyers.

Brian Newberry Accepted into ABOTA

November 18, 2025 — Lewis Brisbois Newsroom

Providence, RI (October 13, 2025) - Lewis Brisbois is pleased to announce that Providence Partner Brian C. Newberry was recently accepted as a new member of the Rhode Island Chapter of the American Board of Trial Advocates (ABOTA) during the organization’s National Board Meeting in Austin, Texas on October 4, 2025.

In discussing his acceptance into the organization, Mr. Newberry noted, “It’s an honor to be accepted into ABOTA. Jury trials lie at the heart of the legal system and while our first priority as lawyers is to resolve disputes as economically and efficiently as possible for our clients, part of that pursuit depends on always being ready to present a case to a jury and it is critically important for both our clients and opposing counsel to know we stand at the top of the profession in that regard.”

Providence Managing Partner Lauren Motola-Davis stated, “ABOTA sets one of the profession’s highest bars for trial excellence and civility. Brian Newberry not only meets that standard - he exemplifies it. We’re thrilled for him and for ABOTA’s Rhode Island Chapter, and we know he’ll continue to strengthen Lewis Brisbois’ National Trial Practice.”

Reprinted courtesy of Lewis Brisbois

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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

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People in house being built

US Homebuilder Sentiment Rises By Most Since 2024

November 18, 2025 — Michael Sasso - Bloomberg

Confidence among US homebuilders rose this month by the most since early 2024, boosted by lower mortgage rates that are chipping away at the nation’s affordability problem.

An index of market conditions from the National Association of Home Builders and Wells Fargo increased 5 points in October to 37, the highest since April. A value below 50 means more builders see conditions as poor than good. Economists surveyed by Bloomberg estimated sentiment would tick up slightly to 33.

“While recent declines for mortgage rates are an encouraging sign for affordability conditions, the market remains challenging,” NAHB Chairman Buddy Hughes said in a statement Thursday. “Most home buyers are still on the sidelines, waiting for mortgage rates to move lower.”

Reprinted courtesy of Michael Sasso, Bloomberg

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Most NYC Buildings Have Begun Local Law 97 Emissions Compliance

November 18, 2025 — Leslie Nemo - Engineering News-Record

About 94% of New York City buildings covered by Local Law 97 filed required documents showing actions to comply with carbon emissions reductions targets for 2024, requested extensions until Dec. 31 or are in talks with the city Buildings Dept. to determine their appropriate compliance,” the agency said.

ENR may be contacted at enr@enr.com

Reprinted courtesy of Leslie Nemo, Engineering News-Record

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Lightbulb on insights

Executive Insights 2025: Leaders in Surety Bonding

November 18, 2025 — Construction Executive

With all the uncertainty surrounding the construction economy, one thing is for sure: Surety Bonding. These experts share their insights from 2025.

HOW CAN CONTRACTORS BUILD A STRONGER CASE FOR BONDING WHEN EXPANDING INTO NEW GEOGRAPHIC MARKETS?

Monique Nightingale-Pitter
Lead Home Office Construction Surety Manager
Chubb

When expanding into new geographic markets, contractors can build a case for support from their bonding company by showcasing their ability to manage potential challenges in the new region. Here are a few key strategies that contractors can implement.

  • Develop a clear business plan. Contractors should provide a detailed business plan outlining goals, strategies, and risk mitigation measures tailored to the new market. A clear business plan demonstrates the contractor’s preparedness and commitment to success.
  • Prove financial stability and operational capabilities. Demonstrating financial strength and a track record of successfully completing similar projects is key. A solid financial foundation better enables a contractor to navigate challenges such as unexpected conditions, costs, or delays. Highlighting past projects where the contractor has successfully managed similar risks helps demonstrate the contractor’s ability to execute, adapt, and overcome challenging situations.

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

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CLE Bootcamp: Hot Topics in the Law

November 18, 2025 — Beverley BevenFlorez – CDJ Staff

The Seminar Group presents the 24th annual CLE Bootcamp that is designed to help participants earn CLE credits in a fun and entertaining way. A few of the topics to be covered include Alternative Dispute Resolution, Construction Law Update, and Personal Injury Litigation: Trends, Case Law, and Damages. The event is relevant for attorneys and in-house counsel.

December 11th-12th, 2025
Courtyard Marriott Seattle Downtown/Pioneer Square
612 2nd Ave.
Seattle WA, 98104

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Thousands of Properties in San Diego No Longer Eligible for Trash Pickup | NBC 7 San Diego

As the city of San Diego starts charging for trash pickup, thousands of properties are now no longer eligible for service. NBC 7's Shelby Bremer explains.

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Inside the Growing Trend of Homeowners Creating Dumb Homes

From doorbells to lights, homes have supposedly become smarter than ever, but now a new trend report from Zillow suggests that dwellings are undergoing a digital detox in favor of dumb homes, NBC’s Morgan Chesky reported for TODAY.

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