CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, JULY 28, 2026

Gavel, scale, and lawbook on desk with dollar sign

White and Williams LLP's Construction and Surety Practice attorneys secured a significant victory for client Ventana DBS LLC in a complex commercial construction dispute before the Philadelphia Court of Common Pleas, Commerce Division.

White and Williams LLP Secures $42.4 Million Award for Ventana DBS LLC in Philadelphia Marriott Construction Litigation

July 27, 2026
Craig O'Neill, Lindsay Liebman, Kristen Nichols Wright, Zachary Roth & William Taylor - White and Williams

White and Williams LLP's Construction and Surety Practice attorneys secured a significant victory for client Ventana DBS LLC in a complex commercial construction dispute before the Philadelphia Court of Common Pleas, Commerce Division. The trial team, led by Bill Taylor, retired Partner, and Craig O'Neill, Co-Chair of the Construction and Surety Practice Group, with support from Lindsay Liebman, Counsel, Zachary Roth, Partner, Kristen Nichols Wright, Associate, and Sue Ferrante, Legal Secretary, obtained a $42.4 million award on Ventana's claims for unpaid work, delay costs, CASPA penalties and interest, attorneys’ fees and other project-related costs arising from the construction of the Marriott W/Element Hotel Project in Philadelphia.

To achieve this result, the White and Williams team managed an extensive discovery period over the course of four-years of litigation, conducted over sixty depositions, participated in court-ordered mediation and arbitration proceedings, and successfully represented Ventana during a bifurcated trial that spanned over the course of a year.

Reprinted courtesy of Craig O'Neill, White and Williams, Lindsay Liebman, White and Williams, Kristen Nichols Wright, White and Williams, Zachary Roth, White and Williams and William Taylor, White and Williams

Mr. O'Neill may be contacted at oneillc@whiteandwilliams.com
Ms. Liebman may be contacted at liebmanl@whiteandwilliams.com
Ms. Wright may be contacted at wrightk@whiteandwilliams.com
Mr. Roth may be contacted at rothz@whiteandwilliams.com
Mr. Taylor may be contacted at taylorw@whiteandwilliams.com

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CDJ NEWS THIS WEEK



Construction worker inspecting

This article focuses on two commonly used methods for quantifying certain types of damages, the measured mile (for lost productivity claims) and the total cost method, and then turns to a question that cuts across all forms of damage claims.

It’s More Than a Feeling: Proving Construction Damages and When You Should Hire an Expert to Help Do It

July 27, 2026 — Bradley E. Sands & Katie McCracken - ConsensusDocs

When you win a bid, you might be singing that everything is going your way. Then something goes wrong. The owner hands you defective plans, sits on RFI responses or other critical information, or otherwise upends the work. The costs pile up through no fault of your own. You feel wronged, and you want to be made whole. But a feeling that you got burned is not enough. To recover, that feeling has to become something the law recognizes as damages. So, what are damages, and how do you prove them?

At bottom, contract damages are the money that puts the non-breaching party (i.e., the party that doesn’t breach the contract) in the position it would have occupied had the contract been performed.

Reprinted courtesy of Bradley E. Sands, Jones Walker LLP and Katie McCracken, Summer Associate, University of Georgia School of Law

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

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Roof tile damage

On or before June 27, 2023, a wind, hail and rainstorm damaged Interstate’s property in Oklahoma. Interstate filed a claim under its policy with Mt. Hawley.

Suit Limitation Provision Eliminates Wind Loss Claim

July 27, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The insurer’s motion for judgment on the pleadings was granted after the insured failed to file suit against the insurer within the policy’s two-year suit limitation provision. Interstate Investments, LLC v. Mt. Hawley Ins Co., 2026 U.S. Dist. LEXIS 98108 (S.D. N. Y. May 4, 2026).

On or before June 27, 2023, a wind, hail and rainstorm damaged Interstate’s property in Oklahoma. Interstate filed a claim under its policy with Mt. Hawley. The policy provided that New York law applied and contained a two- year suit limitation provision.

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

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

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Judge with gavel

The 485-acre site is being developed by Ryan Cos. for a $1-billion data center.

Judge's Order Halts Google Data Center Project in Minnesota

July 27, 2026 — Annemarie Mannion - Engineering News-Record

Construction of a $1-billion Google data center planned by Ryan Cos. on 485 acres in southeastern Minnesota was expected to start in July but is now halted under a judge’s order.

Ms. Mannion may be contacted at manniona@enr.com

Reprinted courtesy of Annemarie Mannion, Engineering News-Record

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Reverse arrow tile

The decision resolves two issues that have generated significant concern among construction industry professionals since the Court of Appeals issued its opinion on August 1, 2024.

Colorado Supreme Court Reverses Course on Public Project Liens: Key Takeaways From Wadsworth v. Regional Rail Partners

July 27, 2026 — Amanda E. McKinlay - Snell & Wilmer

On April 6, 2026, the Colorado Supreme Court issued a unanimous opinion in Ralph L. Wadsworth Construction Company, LLC v. Regional Rail Partners, 2026 CO 19, reversing the Colorado Court of Appeals and providing much-needed clarity regarding verified statements of claim (VSOCs) under the Colorado Public Works Act, C.R.S. §§ 38-26-101 et seq. The decision resolves two issues that have generated significant concern among construction industry professionals since the Court of Appeals issued its opinion on August 1, 2024.

Under C.R.S. § 38-26-107(1), a subcontractor on a public works project may file a VSOC with the contracting public entity for amounts due and unpaid for “…furnished labor, materials, sustenance, or other supplies used or consumed by a contractor or his or her subcontractor in or about the performance of the work contracted to be done or that supplies laborers, rental machinery, tools, or equipment to the extent used in the prosecution of the work….” If a claimant files a VSOC for “an amount greater than the amount due” without a reasonable possibility that the amount is due and with knowledge that the claim is excessive, the claimant “shall forfeit all rights to the amount claimed” and becomes liable for the opposing party’s costs and attorneys’ fees. C.R.S. § 38-26-110.

Ms. McKinlay may be contacted at amckinlay@swlaw.com

Reprinted courtesy of Amanda E. McKinlay, Snell & Wilmer

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Payment made on computer

The moral: if you agree to make a payment before a certain date or to trigger an obligation, make the agreed-upon payment.

Doctrine of Substantial Performance When It Comes to Payment

July 27, 2026 — David Adelstein - Florida Construction Legal Updates

A recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:

Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”

Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (internal citations omitted).

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Insurance coverage

The decision underscores that policy conditions must be interpreted from the standpoint of a reasonably prudent insured and in light of the practical realities of the insured property.

Sixth Circuit Revives Builder’s Risk Coverage, Refusing to Let Insurer Escape on a Technicality

July 27, 2026 — Kevin V. Small & Adriana A. Perez - Hunton Insurance Recovery Blog

In 3371 Reading, LLC v. Liberty Mutual Group, the Sixth Circuit did something courts do not always do in coverage disputes: it refused to let an insurer avoid liability based on a technical policy condition that could never actually be satisfied.

The decision is a straightforward reminder of two core principles. First, policies must be interpreted from the standpoint of a reasonably prudent insured. Second, hyper-technical conditions cannot be used to deny coverage where compliance is never possible.

Reprinted courtesy of Kevin V. Small, Hunton Andrews Kurth LLP and Adriana A. Perez, Hunton Andrews Kurth LLP

Mr. Small may be contacted at ksmall@hunton.com
Ms. Perez may be contacted at pereza@hunton.com

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In Pillsbury's latest roundup, DOT earmarks $1.73B in BUILD grants, federal housing bill becomes law, data center surge cools off, and more.

Real Estate & Construction News Roundup (7/15/26) – The World Cup’s Effect on Commercial Real Estate, Megadeals Lift CRE Sales and Algorithmic Pricing Lawsuits Continue

July 27, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog

In our latest roundup, DOT earmarks $1.73B in BUILD grants, federal housing bill becomes law, data center surge cools off, and more!

  • Data center planning cooled off month over month from “extraordinary levels” to start the summer, while other areas of construction finally picked up a little steam. (Sebastian Obando, Construction Dive)
  • The U.S. Department of Transportation announced $1.73 billion in 2026 BUILD grants covering 127 projects across 50 states, Washington, D.C., American Samoa, Guam and Puerto Rico. (Joe Bousquin, Construction Dive)
  • As algorithmic pricing lawsuits continue to play out around the country, more apartment owners and managers have settled. (Julie Strupp, Multifamily Dive)

Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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puzzle pieces symbolizing arbitration

Construction arbitration may begin after negotiations fail, but the outcome is often shaped much earlier by the contract language, project records and claim decisions made during the job.

Arbitration in Construction Disputes: Process and Best Practices

July 27, 2026 — Construction Executive

Arbitration in construction disputes is a private process where owners, contractors, subcontractors, designers or suppliers present claims to one or more neutral arbitrators instead of taking the dispute through court. The arbitrator reviews evidence, hears testimony and issues a decision that is usually binding.

Construction arbitration is common because project disputes are technical, document-heavy and time-sensitive. Claims may involve schedule delays, disputed change orders, defective work, differing site conditions, payment, termination, indemnity, surety issues or professional liability.

Arbitration can be faster and more specialized than litigation, but speed is not guaranteed. Poor contract language, broad discovery, weak records and unclear damages can make arbitration expensive.

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

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Permits label on file folder

The article examines New York Governor Kathy Hochul’s executive order temporarily halting state environmental permit reviews for certain large-scale data center projects while regulators develop a comprehensive framework to address the sector’s energy demands, water consumption, environmental impacts, and effects on local communities.

New York Orders Moratorium on Large Data Center Permits

July 27, 2026 — Levi W. Barrett - Peckar & Abramson, P.C.

Levi W. Barrett, Co-Managing Partner of Peckar & Abramson’s New Jersey office, Co-Chair of the firm’s Construction Contracts & Risk Management team, and Executive Committee Member, was recently quoted in “New York Orders Moratorium on Large Data Center Permits,” an article written by Engineering News-Record (ENR). The article examines New York Governor Kathy Hochul’s executive order temporarily halting state environmental permit reviews for certain large-scale data center projects while regulators develop a comprehensive framework to address the sector’s energy demands, water consumption, environmental impacts, and effects on local communities. It also explores the broader implications of the moratorium for developers, contractors, investors, and other stakeholders, as well as the ongoing debate between economic development, AI-driven infrastructure growth, and environmental and utility ratepayer concerns.

Mr. Barrett may be contacted at lbarrett@pecklaw.com

Reprinted courtesy of Levi W. Barrett, Peckar & Abramson, P.C.

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Aerial view of Garden City Long Island

The opening of Lewis Brisbois' Garden City location — its 58th office nationwide — is part of the firm's ongoing plans to expand its reach in New York and the broader metropolitan area.

Lewis Brisbois Welcomes Clients and Community Leaders to New Garden City Office Opening

July 27, 2026 — Lewis Brisbois

On July 15, Lewis Brisbois hosted a ribbon-cutting event for its new Garden City office, which opened in April to serve the Long Island community and beyond.

The event was attended by more than 100 people, including Lewis Brisbois attorneys and staff as well as clients, local business and government leaders, Nassau County Supreme Court judges, and members of the press. Nassau County Executive Bruce Blakeman delivered remarks and cut the ribbon for the office.

Reprinted courtesy of Lewis Brisbois

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Electrical lines

The verdict left GRSM’s client responsible for just $900,000, less than 2% of the plaintiffs’ $50 million demand.

GRSM Trial Team Holds Alameda County Asbestos Verdict to $900,000 Against $50 Million Demand

July 27, 2026 — Gordon Rees Scully Mansukhani

Gordon Rees Scully Mansukhani Partners John Katerndahl and Vincent Gunter recently obtained an outstanding trial result for a manufacturer of asbestos-containing electrical cable, holding a jury verdict to $900,000 against a $50 million demand following an eight-week trial in Alameda County Superior Court, which is among the most challenging asbestos venues in the country. The GRSM team also included Associate Brandon Sanchez, on-site trial Paralegal Laura Vitanova, and Paralegal Kerrie Lease.

The plaintiffs, the surviving spouse and four children of a former painter who died of mesothelioma, alleged that the decedent was exposed to asbestos from the company’s electrical cable during construction of a California nuclear power facility. GRSM’s client was the sole remaining defendant at trial. The plaintiffs asked the jury for $50 million and called 15 witnesses across their case-in-chief and rebuttal.

Reprinted courtesy of Gordon Rees Scully Mansukhani

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AI on computer

Discover strategies for AEC firms to bridge the gap between AI pilots and full-scale implementation with proven methods.

How AEC Firms Move AI Beyond the Pilot

July 27, 2026 — Aarni Heiskanen - AEC Business

Most AEC firms can run an AI pilot, but few can scale it. Enthusiasm for a first experiment rarely extends beyond the pilot team, leaving the pilot as an isolated win that never changes how the company works. In a recent AEC Business Podcast episode, Adeline Chan, CEO and co-founder of Hong Kong-based AAL Innovation, explained why that gap exists and what separates the firms that close it from those that stall.

The Pilot Mindset that Holds Construction Back
Adeline draws a sharp contrast between finance and construction. Banks cannot afford to fall behind their competitors, so they pilot constantly, sometimes running hundreds of proof-of-concept teams in parallel and letting them compete internally to identify the approach that works. The winning concept becomes the standard and scales across the organization, and the return on investment is measured in undeniable numbers.

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

Reprinted courtesy of Aarni Heiskanen, AEC Business

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California Architectural Registration Board Supplemental Examination Commissioner

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Aerial view of Manhattan

Insurers Consider Impacts of Troubled NYC Tower on Office-to-Residential Marketplace

July 27, 2026 — Jeff Yoders & Jeff Rubenstone - Engineering News-Record

While lenders are closely watching the investigation into the buckled columns and sagging floor of the former Pfizer headquarters in New York City, insurers are focused on what any findings may mean for the broader market.

Reprinted courtesy of Jeff Yoders, Engineering News-Record and Jeff Rubenstone, Engineering News-Record

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

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Team

Meta, ABC Form Partnership to Launch Academy to Train and Create Jobs for Construction Craft Professionals

July 27, 2026 — ABC - Construction Executive

WASHINGTON, June 8—Meta Platforms Inc. and Associated Builders and Contractors announced a partnership to educate and provide construction-ready career pathways for thousands of data center construction technicians kicking off in Indiana, Louisiana, Ohio and Texas as a meaningful step toward meeting the growing demand for data centers workers nationwide. America’s Workforce Academy is a $115 million investment in the next generation of construction professionals that includes a five-week training program and a job offer from contractors working on Meta projects at the conclusion of the program.

Once an online application process is complete, scholarships, travel, housing and stipends for living expenses are granted to qualified job seekers. They will then participate in career readiness and safety training followed by five weeks of hands-on education, which includes core training and craft training.

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

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Insurance coverage

An Empire-Sized Win for Policyholders: New York Bad Faith Extends Beyond First-Party Coverage

July 27, 2026 — Michael S. Levine, Cary D. Steklof & Torrye Zullo - Hunton Insurance Recovery Blog

A New York federal court has broken new ground and laid a foundation for insureds to pursue damages flowing from bad faith claim handling practices. In a significant decision for policyholders, the Southern District of New York has clarified that bad faith claims (and the consequential damages that accompany them) are not limited to first-party insurance disputes. In Renergy, Inc. v. Mt. Hawley Ins. Co., No. 25-CV-5073, 2026 WL 1192415 (S.D.N.Y. May 1, 2026), the court rejected an insurer’s argument that New York law categorically bars bad faith claims stemming from third-party insurance.

The decision confirms that bad faith conduct may occur equally under property and liability policies and provides important guidance nearly two decades after Bi-Economy and Panasia, where the New York Court of Appeals held, in a first-party insurance dispute, that an insured may recover consequential damages for an insurer’s breach of the duty of good faith and fair dealing when those damages were reasonably within the parties’ contemplation at the time of contracting. The decision also underscores the availability of consequential damages for claims arising under either line of coverage.

Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth LLP, Cary D. Steklof, Hunton Andrews Kurth LLP and Torrye Zullo, Hunton Andrews Kurth LLP

Mr. Levine may be contacted at mlevine@hunton.com
Mr. Steklof may be contacted at csteklof@hunton.com
Ms. Zullo may be contacted at tzullo@hunton.com

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Seminar

Join Partner John Toohey and His Panel During the CLM Construction Conference in Dallas, Texas!

July 27, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

Bremer Whyte Brown & O’Meara, LLP is excited to share that Partner John Toohey is a featured speaker during the CLM Construction Conference, September 23-25, 2026, at Hilton Anatole in Dallas, Texas.

You won’t want to miss this session! Join John Toohey, Kevin Stineman, Jason Gunther, Toby Donoway, and Jason Feld on Thursday, September 24, 2026, from 4:00 PM to 5:00 PM CT.

Pin the Tail on the Subcontractor and Other Risk Transfer Techniques in CD Cases: Effective risk transfer remains a critical tool in managing construction defect exposure. This session explores practical approaches to shifting risk through contractual provisions, additional insured coverage, and alternative policy structures, including wrap programs. Attendees will gain insight into how these strategies apply across multiple jurisdictions and how to use them more effectively in real-world claims.

September 23rd-25th, 2026
Hilton Anatole
2201 N Stemmons Fwy
Dallas, TX 75207

Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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More Than 250,000 Flee as France and Spain Battle Unprecedented Wildfires | DW News

More than 250,000 people have been forced to flee their homes across France and Spain as unprecedented wildfires continue to rage near Bordeaux and Madrid.

CDJ Video Channel

Oregon's Big Data Center Scandal Is Happening in One of the State's Smallest Communities

When one of the world’s biggest technology companies set up shop in one of Oregon’s smallest counties, it turned to a tiny fiber-optic provider to connect its data centers to the internet, the Oregonian reported.

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