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Real Estate & Construction News Roundup (3/18/25) – Data Center Frenzy, China’s Expanding REIT Market and Tariff-Affected Construction Costs

March 31, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, relistings reached highest total in a decade, Florida State Legislature passes bill to increase the state’s housing supply, data center construction adapts to changes and more!

• The data center construction frenzy and a new, potentially larger highway bill were top of mind for builders during the latest round of contractor earnings calls and financial reports. (Joe Bousquin, Construction Dive)
• Tariffs and associated policy uncertainty have increased construction costs and delayed leasing and investment choices. (J.P. Morgan)
• Relistings hit the highest January figure since Redfin began tracking this metric a decade ago. (Diana Olick, CNBC).

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Massachusetts Construction Industry Continues to Wait While Prompt Payment Law Is Put to the Test

March 31, 2026 — Catherine Maronski - Construction Law Zone
Earlier this month, the Massachusetts Supreme Judicial Court (SJC) heard argument in J.C. Cannistraro, LLC v. Columbia Construction Co. et al., a dispute concerning the state’s Prompt Payment Act (PPA). Although a decision has yet to be issued, it could potentially pose widespread implications for high-value private construction projects moving forward – and perhaps backwards. The PPA, G. L. c. 149, § 29E, enacted by the Massachusetts Legislature in 2010, has become a keystone in the construction industry. It was enacted to address, in part, downstream cash flow issues that tend to pervade construction projects by mandating a series of strict guidelines for submitting, and responding to, payment applications for private projects valued over $3,000,000. Amongst these requirements are set timeframes to respond to an application, as well as what must be contained in an application rejection. Critically, if an owner or upper-tier contractor fails to fully comply with all the statutory requirements in response to a proper payment application, the application is automatically “deemed to be approved” and payable. Significantly, however, this is not always the end of the line. Read the full story...
Reprinted courtesy of Catherine Maronski, Robinson Cole
Ms. Maronski may be contacted at cmaronski@rc.com

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Construction Liens and the “Substantial Performance” Doctrine

April 08, 2026 — David Adelstein - Florida Construction Legal Updates
In a recent case dealing with a construction lien, the driving issue was whether the air conditioning contractor “substantially performed” before recording its construction lien against residential property. The importance here pertains to the substantial performance doctrine with respect to construction liens. The Third District Court of Appeal explained, with relevant citations, this doctrine as follows: Under Florida law, a contractor is entitled to a mechanic’s lien if he complies with all provisions of Chapter 713, governing construction liens, and “has substantially performed the contract.” Grant v. Wester, 679 So. 2d 1301, 1307 (Fla. 1st DCA 1996) (quotation omitted); Langley v. Knowles, 958 So. 2d 1149, 1151 (Fla. 5th DCA 2007) (“The substantial performance doctrine recognizes that a contactor who complies with all of the provisions of the contactor’s lien statute is entitled to enforce a lien if he has substantially, but not completely, performed his contractual obligations.”). Substantial performance is performance “so nearly equivalent to what was bargained for that it would be unreasonable to deny the promisee the full contract price subject to the promisor’s right to recover whatever damages may have been occasioned him by the promisee’s failure to render full performance.” Ocean Ridge Dev. Corp. v. Quality Plastering, Inc., 247 So. 2d 72, 75 (Fla. 4th DCA 1971). Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Agent Not Liable for Loss Given Insured’s Vague Instructions for Coverage

April 08, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The Illinois Appellate Court affirmed the district court’s grant of summary judgment to the insured’s agent because there was no breach of duty. Jon Van Order v. Hauk, et al., 2025 Ill. App. Unpub. LEXIS 2378 (Ill. Ct. App. Dec. 23, 2025). The insured began renovating a vacant home in October 2018. He met with agent Joseph Hauk and explained the property was vacant and would be going through renovations for the next several months. Hauk then procured a policy through Shelter Insurance Company insuring the vacant property against several specified perils. The policy provided coverage for water damage if “[t]he exterior of the building sustained a covered loss” and “that loss created an opening through which the water entered.” Damage caused by escaping water from within a plumbing system was excluded if: (1) the damage was caused by a “continuous or repeated leakage over a period of fourteen days or more” or (2) the insured premises had been vacant for 30 consecutive days immediately preceding the loss. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Breaking Ground On New California Public Works Prevailing Wage Requirements

April 27, 2026 — Heather Frisch, Christopher Bouquet & Ashley Stein - The Construction Seyt
Seyfarth Synopsis: As of January 1, 2026, AB 889 bulldozed California’s Prevailing Wage law, which impacts public works employers—including public agencies, the contractors that work for them, and private owners and developers whose projects may be subject to public works requirements. The amended law reframes the calculation of fringe benefits for individuals who work on public works project and mandates annualization of such benefits, demolishes the practice of frontloading these benefits, and requires employers to maintain inspection-ready records of compliance. This year, AB 889 significantly revised California’s prevailing wage law, codified at Labor Code section 1773.1, to clarify the state’s prevailing wage regulations and streamline enforcement. Accordingly, as of January 1, 2026, California public works employers are required to annualize employees’ fringe benefits and maintain specific documentation demonstrating statutory compliance. These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements. Continue reading for the blueprint of how to comply with the state’s amended prevailing wage law. Reprinted courtesy of Heather Frisch, Seyfarth Shaw LLP, Christopher Bouquet, Seyfarth Shaw LLP and Ashley Stein, Seyfarth Shaw LLP Ms. Frisch may be contacted at hfrisch@seyfarth.com Mr. Bouquet may be contacted at cbouquet@seyfarth.com Ms. Stein may be contacted at astein@seyfarth.com Read the full story...

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Bona Fide Dispute Defeats Violation of Prompt Payment Act

June 15, 2026 — David Adelstein - Florida Construction Legal Updates
Most, if not all, jurisdictions, including the federal government, have what is known as a “Prompt Payment Act.” The objective is to ensure prompt payment. If prompt payment is not made, the Prompt Payment Act provides for interest penalties, as well as potentially other costs such as attorney’s fees. But the thing is, it’s not as simple as untimely payment to support the recourse and interest penalties the applicable Prompt Payment Act affords. And the teeth associated with the applicable Prompt Payment Act are not as sharp as perhaps the party claiming untimely payment prefers. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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2026 Construction Law Update

January 26, 2026 — Garret Murai - California Construction Law Blog
Happy New Year! Hope the holidays were enjoyable for you. During the first session of the California Legislature’s 2025-2026 legislative session, 2,350 bills were introduced, of which 917 bills made it to the Governor’s desk, and of which 794 bills were signed into law. For the design and construction industry the most important bills are a new claims resolution procedure for private works projects, a 5% retention cap on certain private works projects, and a number of changes to home improvement contract requirements. Read the full story...
Reprinted courtesy of Garret D. Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Court to General Contractor: Too Late to Reclaim $600K Sub Overpayment

March 03, 2026 — Richard Korman - Engineering News-Record
Massachusetts contractors and their attorneys are once again testing the limits of the state's 15-year-old prompt-pay law, with concerned prime contractors asking an appeals court to overturn a lower court ruling that they believe gives subcontractors a powerful upper hand in payment disputes. Read the full story...
Reprinted courtesy of Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com

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