The post Construction Attorneys: Contract Negotiation Strategy first appeared on Construction Executive.

“Keith Sonderling is uniquely qualified to serve as secretary of labor, with the experience, credentials and proven record of leadership needed to head the department,” said Kristen Swearingen, ABC vice president of government affairs. “As deputy secretary, Sonderling has advanced policies that strengthen the American workforce, expand workforce development opportunities and address harmful Biden-era regulations that restrict worker freedom. His leadership has helped restore a regulatory environment that empowers workers and job creators.”

Earlier this month, the ABC-led Coalition for a Democratic Workplace sent a letter signed by 53 employer organizations urging the Senate HELP Committee to quickly advance Keith Sonderling’s nomination.

ABC encourages the full Senate to swiftly confirm Sonderling so he can continue advancing policies that promote economic growth, protect worker choice and ensure employers have the tools they need to recruit, train and retain the next generation of skilled craft professionals.

SEE ALSO: ARBITRATION NATION: OPPOSING THE FLCA

The post ABC Urges U.S. Senate to Confirm Sonderling as Labor Secretary first appeared on Construction Executive.

Because of these complexities, projects that fail to account for animal care requirements adequately often encounter costly issues—many of which result in litigation. Below are real-world examples drawn from expert witness work, followed by proactive best practices construction professionals should apply to future animal care projects.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. You should consult a qualified attorney for advice regarding your specific situation.

Litigation Examples to Avoid in Your Animal Care Projects

As an animal care engineering expert, Scott Learned, president of Design Learned, has been hired as an expert witness in litigation involving animal care facilities in the United States. Scott Learned is a licensed mechanical engineer and a licensed electrical engineer as well as a LEED Accredited Professional. He is licensed in over 40 states and a subject matter expert on the design and engineering of animal care facilities. He has provided engineering and consultations on hundreds of animal shelters, veterinary hospitals, kennels, daycare and grooming facilities across the U.S. and Canada serving the companion animal industry exclusively since 1994. Learned is also a principal member of the National Fire Protection Association Standards Committee 150: Standard on Fire and Life Safety in Animal Housing Facilities.

Here are three examples of cases in which he provided expert witness testimony regarding the construction of the facility.

Problems With Outdoor Tuff

A dog daycare client experienced issues with newly installed turf at their animal care building and pursued legal action to resolve the problem. Scott was hired to evaluate the facility’s design and construction to determine the root causes of the failure. In short, he identified a couple of breakdown points in the building process.

To start, the civil engineer hired by the client did not design the site’s drainage properly. The engineer assumed sheet flow across the entire property, but water does not move across turf the same way it does over natural grass. Using this design, the contractor then installed turf on a non-compacted base, compounding the issue. As an expert witness, Learned explained how turf drains differently from grass and the complexities of the design requirements. Civil design must account for these differences to prevent water-related performance issues.

For contractors and construction professionals looking to avoid this problem, it is essential to ensure strong coordination and communication among the civil engineer, turf installer and general contractor. In this case, a lack of experience with animal-specific products led to costly consequences. Engineers working on these projects must understand or proactively learn about the properties of animal-care-specific systems and materials, and contractors should know when to voice concerns with design decisions.

Animal Care Buildings Require Specialized HVAC Systems

In another case, a facility struggled with the operational expenses associated with its new HVAC system. The original engineer and architect opted for a single, centralized HVAC system to serve the entire building. However, due to the unique demands of animal care environments, the system failed to provide adequate dehumidification and consistent temperature control throughout the facility.

Learned’s expert witness analysis revealed that HVAC design in animal care facilities must be approached holistically. These environments require careful consideration of odor control, airborne disease mitigation and the high-moisture loads generated by daily operations (including cleaning processes and continuous fresh-air intake). Effective systems typically consist of multiple smaller, independent zones and often include dedicated dehumidification systems to maintain appropriate environmental conditions.

For construction professionals, this case reinforces the importance of working with engineers who have direct experience in animal care facilities or who are willing to consult with animal care specialists. It is also critical to evaluate design decisions through an operational lens, ensuring that long-term energy use, maintenance and system performance are fully considered before construction begins.

Numerous Building Issues

In a third case, a facility encountered widespread problems throughout its animal shelter. Issues included flat flooring with no pitch in animal holding areas, an absence of drains or adequate cleaning systems, poor humidity control and improperly designed animal enclosures. Additionally, a vegetative roof was incorporated as a sustainability feature, but it proved incompatible with the facility’s operational demands.

Learned’s evaluation as an expert witness emphasized that animal care facilities must be designed and constructed as fully integrated systems.

• Flooring should be sloped toward trench drains in dog holding areas to support sanitation protocols.
• Cleaning systems must be built into the design.
• Environmental controls, such as independent dehumidification, must be properly engineered.

While sustainable features can and should be considered, they must align with the functional realities of animal care environments. Unfortunately, the vegetative roof was rotting soon after construction due to the high moisture levels in the building.

Another key takeaway from this case is the importance of using specialized manufacturers for critical components such as animal enclosures. These systems require a high level of specificity and durability, and only a limited number of manufacturers can produce products suitable for animal shelter use. Relying on general design solutions or custom-built enclosures without animal care expertise can lead to significant issues.

For contractors, this serves as a reminder to verify that the design team understands the limits of their expertise and has engaged appropriate specialists where necessary, particularly when addressing highly technical systems and components. It also serves to caution contractors of the incompatibility of certain sustainable designs with animal care facilities.

Proactive Best Practices When Taking on an Animal Care Facility Project

Here are three practices to keep in mind for an upcoming animal care project you may work on.

Ensure the design and plans you are working with are appropriate for animal care environments.

When taking on an animal care facility project, construction professionals must approach planning and execution with heightened diligence. These environments introduce unique operational, health and durability requirements that differ significantly from those of traditional commercial buildings. Mechanical, electrical and plumbing systems play a central role in meeting these demands. HVAC systems must incorporate adequate ventilation, fresh air exchange, dehumidification and high-quality air filtration to control airborne pathogens and maintain animal health. Plumbing systems must support rigorous cleaning protocols and effective drainage, while designs must also address odor control, noise mitigation and disease prevention. Material selection is equally critical, as finishes and systems must withstand frequent washdowns, moisture exposure and physical wear from animals.

Ensure the designers and engineers hired for the project are capable and experienced with animal care buildings.

Equally important is confirming that the design and engineering team has meaningful, proven experience with animal care facilities. Limited or isolated project experience is rarely sufficient for this type of work. Teams should demonstrate a track record of designing animal shelters, veterinary clinics or animal hospitals where animal care guidelines were fully integrated. Experienced professionals understand both technical systems and operational workflows. At the same time, even capable teams must recognize when to engage specialized animal care consultants for areas such as infection control, enclosure design or regulatory compliance. A working knowledge of animal care codes and standards is not optional—it is essential to delivering a compliant and functional facility.

Ensure everyone on the design and construction teams is willing to work collaboratively.

Collaboration across the entire project team is essential to delivering a successful outcome. Animal care facilities require close coordination among the owner, architect, engineers, contractor and specialty consultants throughout both design and construction. Early alignment and continuous communication help surface risks, resolve conflicts and ensure that the design intent is properly executed in the field. Construction administration should be comprehensive, with active involvement from the design team through site visits, submittal reviews and issue resolution. This level of coordination helps maintain quality and ensures the facility performs as intended after turnover.

One of the Most Complex Segments Within Construction

Animal care facilities are among the most complex and specialized segments of the construction industry. As the examples above demonstrate, even seemingly small missteps (such as improper drainage assumptions, inadequate HVAC design or a lack of coordination) can lead to significant operational failures and, ultimately, legal disputes. These are not isolated issues. They are predictable outcomes when the unique requirements of animal care environments are not fully understood or prioritized.

For construction professionals, the path forward is clear. Success in this space requires a proactive mindset, a willingness to engage specialized animal care expertise and a commitment to collaboration across all project stakeholders. By ensuring that designs are purpose-built for animal care, verifying that project teams have the right experience and maintaining strong coordination throughout the project lifecycle, you can reduce risk while delivering facilities that meet both performance and operational expectations.

Ultimately, building animal care facilities is not just about completing a project—it is about creating environments that support animal health, staff efficiency and long-term sustainability. Those who approach these projects with the right level of rigor and expertise will not only avoid costly setbacks but will also establish themselves as trusted partners in a highly specialized and growing sector.

SEE ALSO: MOST FREQUENT VALUE ENGINEERING PROBLEMS IN ANIMAL CARE FACILITIES

The post Did You Know: Unique Legal Considerations for Animal Care Facilities first appeared on Construction Executive.

Traditional AI vs. Generative AI

According to the United States Chamber of Commerce, traditional AI is defined as “a subset of artificial intelligence that focuses on performing preset tasks using predetermined algorithms and rules. These AI applications are designed to excel in a single activity or a restricted set of tasks, such as playing chess, diagnosing diseases or translating languages.” Most of us are using traditional AI on an everyday basis when we utilize the Siri function on our iPhones or the Alexa or Google virtual assistants. Indeed, even the filters on your email or phone preventing spam emails or calls from reaching you are forms of conventional AI.

In construction, contractors, suppliers and designers already use traditional AI in troubleshooting technical issues, training, reviewing credit applications or in evaluating a building’s intended use in order to make recommendations for a design or type of material or equipment.

Generative AI differs from traditional in that it emulates human learning and decision-making in order to develop new content. Unlike traditional AI which analyzes existing data, generative AI reuses what it knows to solve new problems. In the construction industry, generative AI is useful in preparing contracts, cost estimates, developing RFPs and scheduling, among other things.

Contract Negotiation and Drafting

Many aspects of a construction contract negotiation can be enhanced by the use of an appropriate AI tool. For example, specialized construction industry AI tools such as Document Crunch and Spellbook can analyze historical negotiation outcomes and provide input as to where the project participant can most benefit from a modification of a contract term. AI can then suggest alternate wording to address the specific issue of concern.

Generative AI tools can likewise be trained on a construction lawyer’s database of contracts and used to efficiently draft new contracts. AI can quickly and efficiently locate and suggest oft-used clauses from previous contracts or other sources. This method can be helpful in promoting consistency across a field of project documents by using standardized wording and by automating repetitive drafting tasks. Using AI in this way serves to reduce human error and reduce hours spent on time-consuming proofreading and cross-checking.

Construction contract drafting is also enhanced when an AI tool is used to identify ambiguous language, conflicts or unfair risk allocation. These methods can assist in avoiding disputes down the road.

Moreover, AI tools can be very effective in drafting individual contract clauses because a user can input prompts for the type of clause they are looking for; the AI tool will then quickly offer intelligent suggestions for contract language that is responsive to and inclusive of the information with which it was provided. For example, a user can request that AI develop a customized payment terms clause that considers that the project is anticipating funding at a particular time or upon a specific event. Using AI to create a first draft to address unique project terms (that is then edited and revised by a human lawyer) is a best practice proven to save costly attorney time.

The better developed the input, the better the result achieved in the output. That is, more detailed and specific parameters provided to the AI tool will result in higher quality output. Instead of asking AI to create a form subcontract, a user should include parameters in the request detailing that they need a form of steel erection subcontract for an a office building project of 50,000 square feet that is being constructed from ground up on an existing slab in a cold weather climate with a six month duration. Utilizing this method will result in an end product that is much more useful.

AI can then be used further to highlight inconsistencies with other contract documents. Because construction projects typically require multiple documents to create the whole of the “contract documents,” AI can provide substantial value in coordinating the contract document set. Caution should be used in relying on AI output, however, because generative AI cannot be trusted to consider unique project features or relationships.

Other contract drafting and negotiating efficiencies come from AI tools that allow real-time drafting collaboration, redlining, digital document execution and identification, and management of edits to conform content.

Contract Administration

AI is also an incredibly useful tool in construction contract administration, and its potential uses are widespread. It can assist in project planning and scheduling using data from past performance, as well as weather analysis and data about the availability of materials to create an efficient and attainable schedule. Coordination of trades using a schedule analysis can be performed by an AI tool. AI can assist in change-order and submittal tracking. It can review potential project risks and plan mitigation strategies in advance. It can analyze project specifications and use them to create realistic cost estimates for use in budgeting and project planning.  It can evaluate images to assess work quality and identify defects or deviations. AI tools can also decipher and summarize key contract terms and answer contract-related questions. Finally, AI can be used to draft and deploy contractually required notices and directives. All of this enhances communication and collaboration among project participants, the recipe for a successful project.

Inherent Dangers of Using Generative AI

Dangers arise when the data provided to the AI tool is incomplete, inconsistent or low-quality, not uncommon in construction projects. Indeed, the typical construction contract relies on data from multiple sources including design documents, site reports, contractor and subcontractor bids and owner requirements; errors and inaccuracies occur regularly. To avoid this risk, robust quality control of the information provided to the AI tool is imperative. Careful review and human judgment remain necessary because AI is not a substitute for human expertise and experience.

Although the output produced by generative AI can be very convincing and accurate, sometimes the information is just wrong. AI should not be used as anything other than as a preliminary resource for information that must be vetted. Its output must be verified using known and established sources. As an example, using generative AI to respond to an RFI is dangerous. AI can invent incorrect details or specifications that facially appear accurate but are technically incorrect. In order to prevent errors like this, human oversight is absolutely essential. In fact, in 2024, the American Society of Civil Engineers issued a policy statement cautioning that AI cannot replace the professional judgment of the human engineer.

While the use of AI in construction contracting may be hampered by obstacles such as lack of cost, lack of data integration, hallucinations and resistance from industry participants, its usefulness has the potential to far outweigh the barriers. Using AI in construction contracting will be driven forward by the anticipated efficiencies, availability of technology and presence of technology-savvy newcomers to the field. The ultimate result—improvement in project performance. As such AI tools are a welcome advancement in construction contracting.

SEE ALSO:

The post The Use of AI in Construction Contracts: Do the Pros Outweigh the Cons? first appeared on Construction Executive.

Know which tasks to tackle first. Whether it’s tax planning, strategic project selection or rethinking how you’ll deploy capital on work already in progress, a few key moves can help you build a firm foundation for success in 2026.

Work With CPA Advisors on Tax Planning and Projections

More than anything, working with a team of experts who live and breathe tax codes for the construction industry, planning and regulatory changes will produce great results and get things started on the right foot.

Owners and key finance leaders should work closely with their CPAs to build side-by-side tax projections that show their results before and after the OBBBA, so they can spot challenges early and find saving or deferral opportunities. These projections should factor in increased limits on interest deductions, related 100% depreciation deductions on equipment and vehicle or fleet purchases. Don’t forget to focus on planning income through the WIP schedule between years, while also checking that the business is set up to make the most of the now permanent 20% business income deduction for pass-through entities.

Companies should also look at new options for how certain multiunit residential or long-term contracts report revenue for tax purposes. Consider packaging the results in a way that helps with bank conversations, surety support and day-to-day cash planning.

Take Advantage of 100% Bonus Depreciation

One of the most beneficial parts of the OBBBA for contractors, especially specialty subcontractors, is the reinstatement of 100% bonus depreciation, while also doubling Section 179 limits. Purchases of qualifying equipment, machinery, heavy vehicles, certain types of software or other short-lived assets can be expensed in the first year the purchase is placed into service. You can now immediately deduct these costs.

This change creates a short-term tax advantage, but it also means that capital expenditure planning should prioritize assets that drive long-term efficiency, like upgrades to automation, modular systems and data-integrated project management tools. But before taking action, discuss any plans around cash-flow allocation with banking and surety partners.

Time Your Clean Energy Projects Wisely to Secure the Largest Credit

The OBBBA does keep several clean energy incentives, but it accelerates phase-outs for others. Any projects not under construction by mid-2026 may lose eligibility for key credits under prior legislation.

Contractors should reassess any construction plans on renewable generation or storage projects in order to meet the mid-2026 deadline. CFOs should evaluate the credit implications of the building process and work with CPA advisors and financing partners to avoid losing out on clean energy credits.

Innovative design and build-out work can also qualify for R&D tax credits, allowing you to get the tax credit for technical design work while also deducting the expenses of the work, including any research costs or wages, rather than amortizing those expenses over time.

Recalibrate Leverage and Interest Strategy

Section 163(j) is a part of the U.S. tax code that may limit how much interest a business can deduct on its tax return. But under OBBBA, taxpayers can once again add back depreciation and amortization in ATI calculations. This change makes it easier for growing and/or larger companies to deduct more of their interest costs before being phased out, as long as they manage their capital stack responsibly.

Lenders and sureties will continue to emphasize coverage ratios, cash-flow forecasting and working capital stability.

Review Estate and Succession Planning Structures

On Jan. 1, 2026, the OBBBA reinstated significant increases to the lifetime estate tax exemption of up to $15 million per person. Family-owned and closely held construction businesses should continue to make succession and family planning a major priority, even though the lifetime exclusion has been reinstated and will no longer be cut in half pending future legislation.

Coordination between tax advisors, legal counsel, key stakeholders, and surety and valuation advisors is important to align estate strategy with business continuity and bonding requirements. Keeping professionals in the loop with timely and forward-thinking communication is key. Additionally, estate planning around non-voting versus voting shares can provide substantial planning opportunities.

Leverage Workforce and Training Incentives

The lack of skilled tradespeople entering the industry has been a persistent problem for years, but some help could be coming via the expansion of Pell Grant eligibility and a new rule that will allow 529 Plan funds to be used for trade education, offering financial tools to strengthen skilled-labor pipelines. Contractors should integrate these provisions into recruitment and apprenticeship programs, particularly for field operations and equipment technology roles.

The OBBBA also contains a temporary, above-the-line deduction available for overtime compensation up to $12,500 for individuals and $25,000 for married filers (depending on income phase-outs).

The Bottom Line

The OBBBA reshapes the financial framework for construction companies, impacting tax structure, leverage and capital deployment across the industry. The firms that benefit most will be the ones that approach the law proactively through scenario planning, capital strategy and transparent communication with financial and key professional partners.

SEE ALSO: ABC PRAISES FINAL PASSAGE OF THE ONE BIG BEAUTIFUL BILL

The post Winning With the One Big Beautiful Bill: How Contractors Can Build a Plan for Success first appeared on Construction Executive.

“Keith Sonderling is uniquely qualified to serve as secretary of labor, with the experience, credentials and proven record of leadership needed to lead the department,” said Kristen Swearingen, ABC vice president of government affairs. “As deputy secretary, Sonderling has advanced policies that strengthen the American workforce, expand workforce development opportunities and address harmful Biden-era regulations that restrict worker freedom. ABC is proud to support Sonderling’s nomination.”

SEE ALSO: ABC SUPPORTS TRUMP ADMINSTRATION’S CRITICAL IMPROVEMENTS TO APPRENTICESHIP PROGRAMS

The post ABC Applauds President Trump’s Nomination of Keith Sonderling as Labor Secretary first appeared on Construction Executive.

“ABC appreciates the DOL’s decision to drop its defense of part of these regulations,” said Swearingen. “In a victory for the construction industry, taxpayers and the rule of law, yesterday’s order recognizes the illegality of former President Joe Biden’s efforts to expand Davis-Bacon requirements beyond the scope Congress set out.

“However, there is much more to be done. This decision leaves in place the vast majority of the costly and burdensome Davis-Bacon regulations promulgated under the Biden administration. The misguided and unnecessary 2023 final rule continues to unlawfully distort the accuracy of prevailing wage surveys, discourage small business participation in federal contracting and unnecessarily increase costs for taxpayers.

“ABC urges the DOL to swiftly rescind the 2023 final rule, which would be a major step towards cutting red tape and improving the federal government’s delivery of critical construction projects, and to instead pursue commonsense reforms to prevailing wage regulations. ABC continues to pursue litigation seeking to overturn this unlawful and onerous rule entirely.”

This decision blocks the expansion of prevailing wage regulations to cover manufacturing facilities miles away from projects and delivery truck drivers spending any amount of time on a jobsite, and the ability of the government to retroactively impose the measure on already-executed contracts. The decision has no impact on other aspects of the 2023 final rule, which remain in effect.

The decision is the result of a lawsuit filed by the Associated General Contractors of America in November 2023.

The 1931 Davis-Bacon Act and related regulations require contractors and subcontractors that perform work on federal and federally funded construction projects to pay a government-determined prevailing wage and benefit rate.

SEE ALSO: DOUBLING DOWN ON DAVIS-BACON

The post DOL’s Retreat on Davis-Bacon Expansion Welcome, But Full Repeal Is Needed first appeared on Construction Executive.

Direct answer

A construction attorney advises contractors on contracts, payment rights, mechanic's liens, payment bond claims, change orders, delay claims, OSHA matters, defect claims, terminations and dispute resolution. The work covers far more than lawsuits—much of its value comes before a dispute ever becomes formal.

Construction attorneys help contractors protect payment rights, manage project risk, resolve disputes and avoid contract terms that can turn a profitable job into a financial loss. Their work covers more than lawsuits. A construction attorney may review a contract before bid day, help preserve lien rights, respond to a defective work claim, prepare for mediation or defend a contractor after a safety citation.

For contractors, legal counsel is often most valuable before a dispute becomes formal. A missed notice deadline, vague scope clause, unsigned change order or broad indemnity provision can create problems long before a claim is filed. Construction attorneys help identify those risks while there is still time to negotiate, document the issue or preserve leverage.

Modern construction law has become more operational. Contractors are dealing with tighter margins, delayed payments, material escalation, complex public-project requirements, digital tools, safety enforcement and more detailed contract administration. Legal counsel is no longer only a last resort. For many contractors, it is part of protecting cash flow and controlling project risk.

Legal Risk Often Starts Before the Work Begins

Many contractor disputes begin with the contract, not the jobsite. A construction attorney can review project documents before the contractor accepts obligations that are difficult to price, manage or enforce.

This review may include scope language, payment timing, retainage, insurance requirements, flow-down clauses, indemnity terms, change order procedures, notice deadlines, termination rights and dispute resolution provisions. The goal is not to remove all risk from every agreement. The goal is to clarify which risks are normal, which risks can be negotiated and which risks could seriously affect payment or liability.

A few sentences can determine whether a contractor gets paid for extra work, whether delay costs are recoverable, whether material increases are compensable or whether the contractor must defend another party in a lawsuit. Construction attorneys help translate those provisions into practical business consequences.

Contract Review Is a Business Tool, Not Just a Legal Exercise

A useful contract review explains how the agreement will affect project administration, field decisions and payment. Contractors do not need abstract legal commentary. They need to know what the contract requires them to do and where the language creates exposure.

High-risk contract provisions to flag

• Scope of work language that does not clearly define included and excluded work
• Change order clauses that require written approval before extra work begins
• Notice provisions that require quick written notice for delays, changed conditions or added costs
• Pay-if-paid or pay-when-paid clauses that affect subcontractor payment timing
• Broad indemnity language that may expand defense obligations
• No-damages-for-delay clauses that limit recovery for schedule impacts
• Termination provisions that affect payment after suspension or default
• Arbitration, venue and fee-shifting clauses that affect dispute cost

The practical question is not only whether a clause is enforceable. The practical question is how the clause affects pricing, staffing, documentation, leverage and payment risk.

Payment Claims Are Deadline-Driven

Payment disputes are one of the most important reasons contractors need construction attorneys. Construction is cash-flow sensitive, and even a strong claim can weaken if the contractor misses a statutory notice, lien deadline or bond claim requirement.

Mechanic's liens, payment bond claims and prompt payment rights can be powerful tools, but they are technical. Rules vary by state, project type, contract tier and owner classification. Private projects, public projects and federally funded projects often follow different procedures.

A construction attorney can help determine whether lien rights exist, which notices are required, when a claim must be filed, whether a payment bond applies, whether retainage is being withheld properly and whether a lien waiver has already released the claim.

Contractors should evaluate payment rights before invoices become seriously overdue. A timely notice, lien filing or bond claim can change the payment conversation without immediately escalating the matter into litigation.

Change Orders Need Proof, Not Just Field Memory

Change order disputes rarely depend on one document. They usually involve field direction, drawings, RFIs, meeting minutes, emails, photos, cost records and contract language.

Construction attorneys help contractors connect the project record to the contract. The issue is often not whether the contractor performed the work. The issue is whether the contractor can prove entitlement, causation and cost.

What a strong change order file includes

• A clear description of the changed work
• The date the issue or direction arose
• The person who directed or approved the work
• Photos, RFIs, drawings or field reports showing the condition
• Labor, material, equipment and subcontractor cost backup
• Schedule impact records when sequencing or completion changed
• Written notice that matches the contract requirements

Contractors improve recovery chances when they document change work while the project is active. Months later, the other side may dispute the scope, question the cost or argue that notice was too late.

Material Escalation and Tariff Risk Should Be Addressed Up Front

Material escalation has become a recurring contract issue for contractors working with steel, aluminum, electrical equipment, mechanical systems, lumber, fuel-sensitive materials or imported components. Tariffs, freight costs, supply shortages and procurement delays can affect pricing in ways fixed-price contracts may not automatically absorb.

A construction attorney can help evaluate whether a contract includes usable language for escalation, force majeure, change in law, allowances or procurement delays. The most reliable protection is specific contract language negotiated before the project begins.

A strong escalation provision should address which materials are covered, what baseline price applies, how increases are measured, whether tariffs and surcharges are included, what notice is required and whether time extensions are available for delayed procurement.

Contractors should be cautious about relying on general force majeure language for price increases. Force majeure provisions often focus on performance delays, not cost relief. If a contractor needs price protection, the contract should say so directly.

Delay Claims Require Contract and Schedule Analysis

Delay claims can affect labor productivity, equipment costs, supervision, extended general conditions, liquidated damages and downstream subcontractor performance. A delay may involve late design information, owner-directed changes, weather, permitting issues, material delays, labor shortages, site access problems or interference from another trade.

Construction attorneys help determine whether a delay is excusable, compensable or both. An excusable delay may justify more time. A compensable delay may justify more time and money. Some disputes also involve concurrent delay, where multiple causes affect the schedule at the same time.

Counsel may review baseline schedules, updates, daily reports, meeting minutes, procurement records, weather logs and notice letters. The goal is to show not only that a delay occurred, but that the delay affected the contractor's work in a legally meaningful way.

Delay claims are strongest when contractors document impacts as they happen, reserve rights in writing and avoid vague emails that accept revised schedules without addressing cost or responsibility.

Safety Incidents and OSHA Matters Need Fast Response

Construction attorneys are often involved after serious jobsite incidents, OSHA inspections, citations, subcontractor accidents or third-party injury claims. Early decisions can affect liability, insurance coverage, defenses and regulatory exposure.

A contractor may need counsel after a fatality, serious injury, fall, trench incident, crane accident, electrical event, struck-by incident, safety complaint or OSHA inspection. Counsel can help coordinate the response while the contractor preserves evidence, protects privileged communications, works with insurers and avoids statements that unintentionally expand responsibility.

This is especially important on multi-employer worksites, where several contractors may have overlapping safety obligations. Legal counsel does not replace a safety director, but it helps the company respond with discipline when an incident becomes regulatory or adversarial.

Public Projects Add Compliance Risk

Contractors on public projects face legal issues that may not appear on private commercial work. These can include bid protests, procurement rules, payment bond claims, prevailing wage obligations, certified payroll, apprenticeship requirements, project labor agreements, disadvantaged business enterprise commitments and false claims risk.

Public work often has strict procedural requirements. A bid mistake, missed protest deadline, incomplete certification or incorrect payroll classification can create serious consequences. Once work begins, subcontractor compliance, wage determinations, fringe benefit credits and certified payroll records must match the project requirements.

Construction attorneys help contractors review bid documents, bond forms, wage obligations, flow-down terms and dispute procedures. This is especially important for contractors entering a new public market, working across state lines or taking on federally funded projects.

Digital Tools and AI Are Creating New Contract Questions

Project management platforms, drones, BIM, AI-assisted estimating, automated scheduling tools, safety analytics and shared document systems are changing how contractors create and manage project records. These tools can improve efficiency, but they also raise legal questions about data ownership, confidentiality, cybersecurity, reliance and responsibility for errors.

Construction attorneys can help contractors address who owns project data, who can access shared files, how model conflicts are resolved, whether AI tools may process confidential information and how cybersecurity incidents must be reported.

AI use deserves particular caution. Contractors should avoid placing privileged, proprietary or sensitive project information into tools that are not approved for that purpose. If AI-assisted outputs affect estimates, claims, schedules or correspondence, the company should have internal review controls before those outputs influence a project decision.

The issue is not whether digital tools are useful. The issue is whether the contract, insurance program and company policies match how those tools are actually being used.

Defect Claims Need Technical and Legal Review

Defect claims can involve workmanship, design, materials, installation methods, code compliance, water intrusion, structural performance or failure to follow specifications. These disputes often require both technical evaluation and legal strategy.

A construction attorney may help determine whether the alleged defect falls within the contractor's scope, whether design documents contributed, whether another trade caused the issue, whether warranties apply and whether insurance may respond.

Counsel may also coordinate experts, preserve evidence, review destructive testing protocols, respond to demand letters and manage communications with owners, general contractors, insurers and subcontractors.

Contractors should be careful about making broad admissions, performing repair work without written reservations or ignoring insurance notice requirements. The goal is to address legitimate problems without accepting responsibility for issues outside the contractor's control.

Termination and Default Notices Can Change the Entire Project

Termination disputes are among the highest-risk matters contractors face. A default notice can affect payment, bonding capacity, reputation and future work. A wrongful termination may create significant damages, but a poorly handled response can weaken the contractor's position.

Construction attorneys help evaluate whether a default notice is valid, whether the contractor has cure rights, whether the other party followed the contract and whether the alleged default is tied to disputed change orders, delayed payments, defective documents or site access issues.

Contractors also need counsel when considering suspension or termination because of nonpayment, unsafe conditions or owner interference. Stopping work without legal analysis can create exposure if the contract does not allow suspension under the circumstances.

A cure response, termination letter or suspension notice should be fact-based, contract-based and supported by the project record.

Dispute Resolution Is Not Always Litigation

Construction attorneys handle negotiation, mediation, arbitration and litigation. The right path depends on the contract, claim amount, evidence, urgency, relationship and business objective.

Negotiation may work when both sides understand the cost of escalation. Mediation can help when the parties need a neutral facilitator and a structured settlement process. Arbitration may be required by contract and can be useful for technical disputes, though it is not always inexpensive. Litigation may be necessary for lien foreclosure, insurance coverage, multi-party disputes or matters requiring court authority.

The contractor with organized notices, clean cost records, strong daily reports and consistent communication usually has more leverage than the contractor relying on general frustration after the project ends.

When Contractors Should Call a Construction Attorney

Contractors do not need legal counsel for every routine project issue. They should consider involving a construction attorney when an issue affects payment, schedule, liability, safety, contract rights or long-term business risk.

Situation	Why counsel may be needed	What to prepare
Risky unsigned contract	Risk can often be reduced before signing	Contract, scope, proposal and exclusions
Late payment or retainage dispute	Lien, bond or prompt payment deadlines may apply	Invoices, pay applications, waivers and emails
Disputed change order	Recovery may depend on notice and proof	RFIs, photos, field reports and cost backup
Delay or acceleration claim	Time and cost recovery may require schedule proof	Baseline schedule, updates and daily reports
OSHA inspection or serious incident	Early response affects defenses and exposure	Incident records, safety plan and training files
Default or termination notice	Cure rights and payment rights may be at risk	Notice letter, contract and project communications
Public project compliance issue	Wage, bid, bond or certification rules may apply	Bid documents, payroll records and bonds
Defect or warranty claim	Technical responsibility may be disputed	Plans, specs, photos and repair records

The earlier counsel is involved, the more options the contractor usually has. A well-timed notice or payment preservation step can often reduce escalation before the other side controls the narrative.

How Contractors Should Choose Legal Counsel

The right construction attorney understands both legal doctrine and how construction projects actually operate. Construction disputes involve project-specific language, payment structures, schedule records, field documentation and statutory rights.

Contractors should look for experience with construction contracts, mechanic's liens, payment bonds, change orders, delay claims, terminations, OSHA matters, insurance, indemnity, public work and dispute resolution.

Communication style matters as well. Legal advice should be clear enough for business decisions. A contractor should understand the options, risks, likely costs, timeline and recommended next steps.

Local knowledge also matters. Lien deadlines, prompt payment rules, licensing requirements, anti-indemnity statutes and public-project procedures vary by jurisdiction. Contractors working across state lines may need counsel who can coordinate with local attorneys or advise on multi-state risk.

The Best Legal Strategy Is Built Into Project Controls

Construction attorneys are most valuable when their work connects to everyday contractor systems. Contract review, notice templates, lien tracking, change order workflows, safety response protocols and claim documentation procedures can reduce disputes before they become formal claims.

Legal review should be considered before signing unfamiliar contracts, bidding unusual projects, entering new public markets, accepting broad indemnity language, facing material price uncertainty, approaching payment deadlines or responding to repeated change order disputes.

This approach does not turn every job into a legal exercise. It helps contractors separate routine project friction from issues that threaten margin, payment or reputation. As contracts, technology, labor requirements and payment risks become more complex, contractors that treat legal review as part of project controls will be better positioned to protect cash flow and make clearer decisions when problems arise.

Key Takeaways

• Most contractor disputes start in the contract, not on the jobsite—review high-risk clauses before signing.
• Payment rights are deadline-driven; preserve lien, bond and prompt payment rights before invoices fall seriously overdue.
• Change order, delay and defect claims succeed on documentation—build the proof while the project is active.
• Safety incidents, OSHA matters and termination notices call for fast, disciplined response to protect defenses and payment.
• The strongest legal strategy is built into project controls, not saved for the moment a claim is filed.

Construction Attorney FAQs

What does a construction attorney do?

A construction attorney advises contractors on contracts, payment rights, liens, bond claims, project disputes, OSHA matters, defect claims, terminations and litigation.

When should a contractor hire a construction attorney?

A contractor should consider hiring a construction attorney before signing a high-risk contract, when payment is delayed, when change orders are disputed, after a serious jobsite incident or when a default, termination, lien, bond claim or lawsuit is possible.

Can a construction attorney help a contractor get paid?

Yes. A construction attorney can help preserve mechanic's lien rights, prepare bond claims, send formal payment demands, evaluate prompt payment remedies and avoid lien waiver mistakes.

Do contractors need an attorney for every contract?

Not every contract needs full legal review, but unfamiliar contracts, large projects, public work, risky indemnity terms, strict notice provisions and unusual payment language should be reviewed before signing.

What is the difference between a construction attorney and a general business attorney?

A construction attorney focuses on project-specific issues such as scope, change orders, liens, bonds, delay claims, construction defects, safety disputes and public-project rules.

What should contractors bring to a construction attorney?

Contractors should bring the contract, proposal, scope documents, change orders, invoices, pay applications, lien waivers, emails, notices, schedules, daily reports, photos and any letters alleging default, delay, nonpayment or defective work.

The post What Construction Attorneys Do and When Contractors Need Them first appeared on Construction Executive.

The FLCA was introduced by Rep. Pete Stauber (R-MN) in the House and Senators Cory Booker (D-NJ) and Josh Hawley (R-MO) in the Senate. The bill would allow federal government-appointed arbitrators to set the terms of first contracts between unions and employers if the parties fail to reach a voluntary agreement within strict, short timeframes.

The FLCA mirrors deeply flawed provisions found in the radical Protecting the Right to Organize Act and the discredited Employee Free Choice Act both of which Congress previously rejected for good reason. Specifically, the FLCA would:

• Impose unrealistic, arbitrary deadlines requiring employers and newly formed unions to reach first-contract agreements on an accelerated timeline that ignores the complexity of real workplace negotiations.
• Require mediation via an obscure government agency—the Federal Mediation and Conciliation Service, which the Trump administration is actively trying to eliminate and which has no experience mediating private sector employment contracts.
• Mandate binding interest arbitration if an agreement is not reached in just 120 days, handing unprecedented authority to federal bureaucrats and undermining the foundational principle of voluntary agreement in U.S. labor and contract law.
• Allow government arbitrators with no knowledge of the industry or business to set a contract dictating employment terms, including wages, benefits, workplace safety procedures and leave policies—areas that should be determined by the parties closest to the workplace, not government appointees. Arbitrators would have the ability to impose any terms they wish, with no requirement that they consider the employer’s ability to handle the contract terms imposed. The contract would be binding for two years.
• Strip workers and businesses of any meaningful recourse. If either party disagrees with the arbitrator’s decision, they have no avenue for appeal. Workers would not even have the right to ratify the contract imposed upon them.

Big picture, the FLCA represents an unprecedented expansion of federal authority into private-sector employment relationships. Never before has the U.S. government been empowered to unilaterally dictate the terms and conditions of employment in the private sector. This legislation does not protect workers—it strips them of their voice.

SEE ALSO: ABC OPPOSES THE EGREGIOUS FASTER LABOR CONTRACTS ACT

The post Arbitration Nation: Opposing the FLCA first appeared on Construction Executive.

“Setting a dangerous precedent, House Democrats and a few unprincipled Republicans today voted to pass the Faster Labor Contracts Act,” said ABC President and CEO Michael Bellaman. “The FLCA imposes arbitrary and unrealistic deadlines on employers to finalize negotiations with newly elected unions or face ‘binding interest arbitration of first contracts.’ In practice, this means, for the first time in American history, a federal government bureaucrat will appoint an individual to dictate exactly what is included in a contract between two private negotiating parties.

“The consequences of this misguided bill include destroying voluntary agreement and good-faith labor-management negotiations and could expand to disputes over wages, benefits and working conditions to include social or political issues unrelated to the day-to-day needs of workers and employers,” said Bellaman. “ABC supports legislation that upholds the intent of the National Labor Relations Act and protects freedom of association. Unfortunately, the FLCA would undermine the bargaining process and counter the freedoms the NLRA was designed to protect.”

Key provisions of the FLCA:

• Within 10 days of receiving a request to collectively bargain with a newly recognized union, the parties must begin bargaining. If the employer and union do not reach an agreement on a first contract within 90 days of the beginning of bargaining—regardless of whether they are negotiating in good faith, and for any reason at all—the parties must participate in mediation. This would be an unprecedented expansion of federal government authority into the private sector.
• If mediation is also unsuccessful within mere weeks, a three-person arbitration panel chosen by the parties will be required to settle the dispute by a majority vote and the decision will be binding. If the parties fail to identify individuals to join the arbitration panel within two weeks, an arbitrator chosen by federal government bureaucrats will impose a collective bargaining agreement on the workers, employer and union.

In order of signing the discharge petition, the Republican supporters who voted for the bill are: Reps. Mike Lawler, N.Y., Max Miller, Ohio, Rob Bresnahan, Pa., Brian Fitzpatrick, Pa., Don Bacon, Neb., Riley Moore, W.Va., and Nick LaLota, N.Y. They were joined by Republican representatives Mike Carey, Ohio, Andrew Garbarino, N.Y., Carlos Gimenez, Fla., John Joyce, Ohio, Nicholas Langworthy, N.Y., Nicole Malliotakis N.Y., Michael Rulli, Ohio, Maria Elvira Salazar, Fla., Christopher Smith, N.J., Pete Stauber, Minn., Mike Turner, Ohio, Jefferson Van Drew, N.J., and Derrick Van Orden, Wis., in the final vote.

“The FLCA fortifies the role of government bureaucrats in private workplace matters and applies a one-size-fits-all contract process on business, workers and unions,” said Bellaman. “The Trump administration and U.S. Senate must reject this egregious legislation. ABC calls on them to instead stand with workers, entrepreneurs and small businesses.”

Visit protectingamericanworkers.org to learn more.

SEE ALSO: ABC OPPOSES EGREGIOUS FASTER LABOR CONTRACTS ACT

The post House-Passed Faster Labor Contracts Act Is a Disgrace to Free Enterprise first appeared on Construction Executive.