CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - MONDAY, JULY 13, 2026

Grey question marks with one yellow question mark

Structural engineers, construction lawyers and risk specialists explain how major structural failures are analyzed before investigators reach conclusions.

How Engineers Will Determine Why NYC's Pfizer HQ Conversion Buckled

July 13, 2026
Bryan Gottlieb - Engineering News-Record

Construction crews have stabilized the former Pfizer headquarters redevelopment in Midtown Manhattan after two load-bearing structural columns buckled on the 21st floor July 7.
The focus has now shifted from emergency response to determining what caused the office-to-residential conversion to suffer a major structural failure.

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

Reprinted courtesy of Bryan Gottlieb, Engineering News-Record

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CDJ NEWS THIS WEEK



Texas state capitol

These procedural changes carry particular significance for construction litigants.

Texas Adopts New Procedural Rules for Summary Judgment Motions: What You Need To Know

July 13, 2026 — Conor G. Bateman & Marsha Cotton - Snell & Wilmer

On March 1, 2026, sweeping amendments to Texas Rule of Civil Procedure 166a took effect, fundamentally changing how Texas courts handle summary judgment motions — from filing and briefing through disposition. Whether representing a plaintiff or defendant, Texas litigants and attorneys must understand these new rules and their impact on case strategy and timelines. These procedural changes carry particular significance for construction litigants.

Background: The Prior Rule
Texas summary judgment practice has long diverged from the federal model. The Texas Rules of Civil Procedure recognize two types of summary judgment motions: (1) the traditional motion for summary judgment, and (2) the “no-evidence” motion for summary judgment. The no-evidence motion — unique to Texas — may be filed only after adequate time for discovery has passed. No bright-line rule governs that determination; it depends on the unique circumstances of each case.

Reprinted courtesy of Conor G. Bateman, Snell & Wilmer and Marsha Cotton, Snell & Wilmer

Mr. Bateman may be contacted at cbateman@swlaw.com
Ms. Cotton may be contacted at mcotton@swlaw.com

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Gavel on law books

The ruling addresses three aspects of the 2023 regulations that sought to extend Davis-Bacon obligations beyond their traditional scope.

A Win for Clarity: What a Recent Federal Court Decision Means for Davis-Bacon Compliance

July 13, 2026 — Stephen E. Irving - Peckar & Abramson, P.C.

Following the Department of Labor’s 2023 Davis-Bacon rule changes, federal construction contractors faced a pressing question: not whether paying prevailing wages is required, but how far those obligations could extend. Could they reach off-site material suppliers? Delivery drivers? Contracts that omitted Davis-Bacon clauses entirely? A recent federal court decision in AGC of America v. US Department of Labor answers these questions in important ways, vacating several disputed provisions and giving contractors greater certainty when pricing, bidding, and administering federal construction projects.

The ruling addresses three aspects of the 2023 regulations that sought to extend Davis-Bacon obligations beyond their traditional scope. By vacating those provisions, the decision creates a more predictable compliance environment and reinforces an important principle: Davis-Bacon enforcement works best when contractors, workers, and regulators operate under clear, objective rules.

Mr. Irving may be contacted at sirving@pecklaw.com

Reprinted courtesy of Stephen E. Irving, Peckar & Abramson, P.C.

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Licensed Unlicensed note with checkboxes

There’s been a recent trend in Florida case law that has figuratively “killed” unlicensed contractors.

Trend Continues Where Unlicensed Contractors Have No Recourse

July 13, 2026 — David Adelstein - Florida Construction Legal Updates

There’s been a recent trend in Florida case law that has figuratively “killed” unlicensed contractors. Here’s another one. The moral to this trend and case is simple: make sure you have the proper licenses prior to serving as a contractor under Florida law. Trying to be cute, as seemed to be the situation in this case with a creative argument, is not an argument that will carry the day and your resources will be devoted to being creative versus the ultimate merits of the dispute.

In Ramindesign, LLC v. Skarzynski, 2026 WL 1649571 (S.D.Fla. 2026) an owner of real property hired a company to design and construct a spec home on the property. The company and its owner were NOT licensed contractors. The contract stated the company was serving as a “spec developer” and referred to it as the contractor throughout the contract. Other than this, the contract was set up as a cost plus a fee.

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Hail storm

Plaintiff insured alleged that hail and a windstorm caused damage to his property.

Insured’s Bad Faith Claim Survives Summary Judgment

July 13, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026).

Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the 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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Street lamp

BWB&O is proud to announce that Reno Partner Karen Baytosh received a significant victory on behalf of the firm’s Developer Client in a high-exposure personal injury matter.

Congratulations to Reno Partner Karen Baytosh for Securing a Complete Dismissal via a Motion for Summary Judgment

July 13, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

BWB&O is proud to announce that Reno Partner Karen Baytosh received a significant victory on behalf of the firm’s Developer Client in a high-exposure personal injury matter.

Plaintiff, a teenager, was struck by an intoxicated driver while walking her dog at night, sustaining catastrophic injuries requiring 24-hour critical care for the remainder of her life. Plaintiff’s Guardian brought suit against the drunk driver and her husband, the City, and BWB&O’s Developer Clients, alleging that the City and Developers failed to improve street lighting and install a sidewalk that would have prevented the accident.

Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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Louisiana state capitol

These provisions are designed to provide insurers with greater protection from bad-faith exposure in contested liability and injury claims and are viewed as a legislative response to concerns raised by Kelly and subsequent bad-faith litigation.

Louisiana Legislature Enacts Act 932 – Significant Changes to Insurer Bad-Faith Exposure for Failure to Settle

July 13, 2026 — Tabitha R. Durbin & Jennifer E. Michel - Lewis Brisbois

The Louisiana Legislature has enacted Act 932 (formerly House Bill 1162), which became law this week without the Governor's signature pursuant to the Louisiana Constitution, after expiration of the applicable constitutional review period. Act 932 makes several important amendments to Louisiana's insurer bad-faith statute and appears intended, at least in part, to address issues arising from the Louisiana Supreme Court's decision in Kelly v. State Farm Fire & Casualty Co., 169 So.3d 328 (La. 2015). The Act also makes changes regarding claim payments involving licensed contractors. The Act takes effect on August 1, 2026.

Key Takeaways
Act 932:

  • Limits certain bad-faith causes of action (bad faith failure to settle) involving personal injury and bodily injury claims where good-faith disputes exist or where an insurer has not been afforded sufficient opportunity to respond to a settlement demand.
  • Requires insurers and adjusters to verify a contractor's Louisiana license status before issuing claim payments when a contractor is named as a payee on a check for repair or restoration of immovable property.
  • Creates a statutory safe harbor protecting insurers from bad-faith penalties and attorney fees when payment delays result from an inability to verify a contractor's license, provided specified documentation and notice requirements are met.

Reprinted courtesy of Tabitha R. Durbin, Lewis Brisbois and Jennifer E. Michel, Lewis Brisbois

Ms. Durbin may be contacted at Tabitha.Durbin@lewisbrisbois.com
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com

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Construction worker framing house

Cannistraro arose from the construction of a manufacturing facility in Walpole, which was subject to the PPA.

What Massachusetts Contractors and Developers Can Learn from Cannistraro v. Columbia Construction

July 13, 2026 — Anthony LaPlaca & Luke Marston - The Construction Seyt

Introduction
On June 26, 2026 the Massachusetts Supreme Judicial Court issued its decision in J.C. Cannistraro, LLC v. Columbia Construction Co.—a holding that sits at the intersection of Prompt Pay Act compliance and the Massachusetts Arbitration Act.[1]

Most already know that the Massachusetts Prompt Pay Act (PPA) imposes strict timing and certification requirements for rejecting payment applications and proposed change orders on projects valued at $3 million or more. Most notably, the PPA requires the paying party to give the payee written notice of its approval or rejection of progress applications and proposed changes within 15 days of receipt, which notice must include a “factual and contractual basis for the rejection” and must be “certified as made in good faith.”[2] In the absence of a timely certified notice, payment is “deemed to be approved” unless the payor properly rejects payment before it comes due.[3]

Reprinted courtesy of Anthony LaPlaca, Seyfarth Shaw LLP and Luke Marston, Seyfarth Shaw LLP

Mr. LaPlaca may be contacted at alaplaca@seyfarth.com
Mr. Marston may be contacted at lmarston@seyfarth.com

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Super

This is the thirteenth consecutive year Mr. Murai has been recognized by Super Lawyers.

Nomos LLP Partner Garret Murai Recognized by Super Lawyers

July 13, 2026 — Garret D. Murai - California Construction Law Blog

Nomos LLP Partner Garret Murai has been recognized as a 2026 Northern California Super Lawyer honoree in the area of Construction Litigation. This is the thirteenth consecutive year he has been recognized by Super Lawyers.

Super Lawyers, an annual listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and personal achievement, is limited to no more than five percent (5%) of lawyers in a state who are selected through a multiphase process that includes a statewide survey of lawyers, independent research evaluation and peer reviews by practice area.

Mr. Murai may be contacted at gmurai@nomosllp.com

Reprinted courtesy of Garret D. Murai, Nomos LLP

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Water intrusion from window

Water, especially when you can't see it, can cause serious and costly damage to buildings.

Preventing Common and Costly Water Intrusion Events in Construction

July 13, 2026 — Andrew Swift - Construction Executive

Water leaking into a building is a leading cause of damage and loss in the construction industry. On one jobsite, heavy rains flooded a sub-basement, damaging a new electrical transformer—all because a roof drain was not property connected. On another jobsite, a drinking-fountain supply line broke in a multistory building that was undergoing renovation, causing water to run—undetected—for an entire weekend, resulting in water damage to all lower floors, where construction had been finished.

Those loss scenarios could have been prevented with a comprehensive and effective water damage prevention plan (WDPP). This includes routine site inspections to identify uncontrolled water damage exposures and basic maintenance to make sure drains are clean of debris and divert them to a catch basin or low point away from the building. An effective WDPP plan also incorporates technology such as backflow preventers on sewer connections and water sensing technology to monitor the most vulnerable exposures.

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

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Handshake agreement

If an arbitration clause is carefully drafted, and properly used, these clauses an be helpful in assuring that the streamlining effect for which arbitration was created actually occurs.

Mandatory Arbitration Isn’t All Bad, if. . .

July 13, 2026 — Christopher G. Hill - Construction Law Musings

In the past week or so mandatory arbitration has been all the rage. From those that argue that arbitration is becoming more burdensome than litigation, to my friend and fellow construction attorney Scott Wolfe who gives great advice on how to make arbitration worth it again. You can place me in the camp of those that think that mandatory arbitration clauses of the type typically found in contracts can add a layer of expense that can be unnecessary.

However, if an arbitration clause is carefully drafted, and properly used, these clauses an be helpful in assuring that the streamlining effect for which arbitration was created actually occurs. Because the contract is king in Virginia, these provisions can essentially create the rule of civil procedure used to resolve any dispute relating to the project.

Mr. Hill may be contacted at chrisghill@constructionlawva.com

Reprinted courtesy of The Law Office of Christopher G. Hill

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Department of Energy building in DC at Sunset

For all CAISO stakeholders, the coming months will reveal the extent to which California must adapt its existing market and transmission planning structure in order to address FERC’s concerns.

FERC Issues Show-Cause Orders: Impacts on California and Other Regional Power Markets

July 13, 2026 — Stephen J. Humes, Alicia M. McKnight & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law Blog

At an open meeting on June 18, 2026, the Federal Energy Regulatory Commission (FERC) issued show-cause orders under Section 206 of the Federal Power Act to the six FERC-jurisdictional RTOs/ISOs—PJM Interconnection, ISO New England, Midcontinent Independent System Operator, Southwest Power Pool, New York Independent System Operator and California Independent System Operator—along with their transmission owners (TOs), directing each region and the TOs to justify or revise tariff provisions governing how data centers and other large loads connect to and receive transmission service from the grid. These show-cause orders will impact several power markets across the country, including California.

Reprinted courtesy of Stephen J. Humes, Pillsbury, Alicia M. McKnight, Pillsbury and Jason Drogin Atwood, Pillsbury

Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com

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AI

Dive into AI innovations in real estate with insights from Mark Sorsa-Leslie on connecting data and enhancing building maintenance.

From Dark Data to Building Intelligence

July 13, 2026 — Aarni Heiskanen - AEC Business

In this episode, I talk with Mark Sorsa-Leslie, founder and CEO of Auttaa AI, whose team just won first place in Luotea’s inaugural hackathon in Helsinki for turning property maintenance from reactive firefighting into proactive forecasting with AI. Mark is a chartered surveyor with 30 years of real estate data experience, previously the founder of the UK sensor company Beringar.

We discuss why so much building data stays dark and siloed, from outdated networking technology to the shortage of people who understand both engineering and property. Mark explains how Auttaa bridges real-time building data with large language models, using what he calls an “influence graph” to surface correlations and causation across previously disconnected systems, such as linking occupancy patterns to CO2 readings to diagnose ventilation problems in minutes rather than days.

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

Reprinted courtesy of Aarni Heiskanen, AEC Business

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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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Interior home or office

Buckling Columns on NYC Pfizer HQ May Chill Broader Office-to-Residential Conversion Trend

July 13, 2026 — Jeff Yoders - Engineering News-Record

Office-to-residential conversions have been picking up steam in large cities as older office buildings sit empty while housing demands rise—but the buckled-column emergency at developer Metro Loft's 235 E. 42nd Street project in New York City has potential to increase the risk profile of conversions as real estate investors reassess their involvement and risk appetite.

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

Reprinted courtesy of Jeff Yoders, Engineering News-Record

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Construction Workers smiling

Nonresidential Construction Adds Healthy 19,000 Jobs in April

July 13, 2026 — ABC - Construction Executive

WASHINGTON, May 8—The construction industry added 9,000 jobs on net in April, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 50,000 jobs, an increase of 0.6%.

Nonresidential construction employment increased by 19,000 positions, with gains in all three subcategories. Nonresidential specialty traded added the most jobs, increasing by 12,600 positions. Nonresidential building and heavy and civil engineering added 5,600 and 800 jobs, respectively, in April.

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

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Water leak on floor

Insurer’s Attempt to Eliminate Leak Claim on Summary Judgment Fails

July 13, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The federal district court denied the insurer’s motion for summary judgment on the insured’s claim for damage caused by a water leak, but granted the insurer’s motion on the bad faith claim. Hampartsoumian v. State Farm General Ins. Co., 2026 U.S. Dist. LEXIS 86735 (C.D. Calif. Apri 17, 2026).

The insured returned to her residence to find water on the kitchen floor and surrounding areas that appeared to have originated from the dishwasher. A plumber observed that the dishwasher’s air gap hose, which connected the appliance to the kitchen sink drain line, was disconnected. The insured maintained that the two invoices from the plumber stated that the dishwasher discharge hose had “burst/had come part.”

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

ABA’s Exploring a Career in Construction Law Webinar

July 13, 2026 — Beverley BevenFlorez – CDJ Staff

This American Bar Association webinar “introduces young lawyers to a dynamic practice area that blends litigation and transactional work.” Attendees “will hear from experienced practitioners and get a behind-the-scenes look at how construction law can shape a versatile and rewarding legal career.” In this event “three experienced construction lawyers share not only what they do, but how they built their careers in this field.”

August 24th, 2026
Virtual Event

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Dramatic Roof Collapse at New Jersey BJ’s Rattles Witness: ‘I’ve Never Seen Anything Like That’

Heavy rains in New Jersey caused the roof over a big box store to partially collapse, temporarily trapping two people inside, authorities said. WNBC reports.

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Teen's Science Lab Sparks Second FBI Probe in Irvine

Orange County authorities and the FBI responded Tuesday to a hazmat situation in the same Irvine neighborhood searched by federal agents earlier this year after a teenager’s science experiment triggered a dayslong investigation. KTLA's Sandra Mitchell reports.

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