Law - Construction Executive https://constructionexec.com The Magazine for the Business of Construction Thu, 30 Jul 2026 15:52:44 +0000 en-US hourly 1 https://constructionexec.com/wp-content/uploads/2025/10/CE_Fav_Green_512x512-1-150x150.png Law - Construction Executive https://constructionexec.com 32 32 251514335 ABC Urges U.S. Senate to Confirm Sonderling as Labor Secretary https://constructionexec.com/article/abc-urges-u-s-senate-to-confirm-sonderling-as-labor-secretary/?utm_source=rss&utm_medium=rss&utm_campaign=abc-urges-u-s-senate-to-confirm-sonderling-as-labor-secretary Thu, 30 Jul 2026 15:52:33 +0000 https://constructionexec.com/?p=66246 The U.S. HELP Committee advanced the nomination of Keith Sonderling for Labor Secretary.

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WASHINGTON, July 30—Associated Builders and Contractors today commended members of the U.S. Senate Health, Education, Labor and Pensions Committee for advancing the nomination of Acting Secretary of Labor Keith Sonderling to serve as secretary of the U.S. Department of Labor.

“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

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Did You Know: Unique Legal Considerations for Animal Care Facilities https://constructionexec.com/article/did-you-know-unique-legal-considerations-for-animal-care-facilities/?utm_source=rss&utm_medium=rss&utm_campaign=did-you-know-unique-legal-considerations-for-animal-care-facilities Wed, 29 Jul 2026 10:00:00 +0000 https://constructionexec.com/?p=66109 Animal care facilities are among the most complex and specialized segments of the construction industry, and that can lead to legal complications.

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Animal care facilities are highly specialized environments that require expertise far beyond traditional commercial or even standard medical construction. Whether designing and building animal shelters, doggy daycares, veterinary clinics or full-service animal hospitals, these facilities operate under conditions that introduce unique challenges related to sanitation, durability, animal behavior and operational workflows.

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

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Winning With the One Big Beautiful Bill: How Contractors Can Build a Plan for Success https://constructionexec.com/article/winning-with-the-one-big-beautiful-bill-how-contractors-can-build-a-plan-for-success/?utm_source=rss&utm_medium=rss&utm_campaign=winning-with-the-one-big-beautiful-bill-how-contractors-can-build-a-plan-for-success Thu, 02 Jul 2026 10:00:00 +0000 https://constructionexec.com/?p=65794 Reassess where your construction company stands one year after the One Big Beautiful Bill Act was passed.

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When it was signed into law on July 4, 2025, the One Big Beautiful Bill Act delivered significant tax and regulatory overhauls. For construction companies, the changes created immediate and long-term planning opportunities, particularly in how tax positions, cash flow and capital deployment are affected. For contractors and CFOs, now is the moment to reassess strategy and get ahead of the impact, while keeping key partners in the loop, like your accounting team, banks and surety.

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

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ABC Applauds President Trump’s Nomination of Keith Sonderling as Labor Secretary https://constructionexec.com/article/abc-applauds-president-trumps-nomination-of-keith-sonderling-as-labor-secretary/?utm_source=rss&utm_medium=rss&utm_campaign=abc-applauds-president-trumps-nomination-of-keith-sonderling-as-labor-secretary Tue, 30 Jun 2026 21:02:17 +0000 https://constructionexec.com/?p=65831 President Trump nominates Keith Sonderling for Secretary of U.S. Department of Labor.

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WASHINGTON, June 30—Associated Builders and Contractors today released the following statement commending President Donald Trump for nominating Acting Secretary of Labor Keith Sonderling to serve as secretary of the U.S. Department of Labor.

“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

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DOL’s Retreat on Davis-Bacon Expansion Welcome, But Full Repeal Is Needed https://constructionexec.com/article/dols-retreat-on-davis-bacon-expansion-welcome-but-full-repeal-is-needed/?utm_source=rss&utm_medium=rss&utm_campaign=dols-retreat-on-davis-bacon-expansion-welcome-but-full-repeal-is-needed Fri, 26 Jun 2026 10:00:00 +0000 https://constructionexec.com/?p=65761 “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."

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WASHINGTON, June 25—Associated Builders and Contractors issued the following statement from its vice president of government affairs, Kristen Swearingen, in response to the U.S. Department of Labor’s decision to drop its defense of a lawsuit challenging certain provisions of the costly and burdensome 2023 final rule revising prevailing wage regulations under the Davis-Bacon Act:

“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

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What Construction Attorneys Do and When Contractors Need Them https://constructionexec.com/article/what-construction-attorneys-do/?utm_source=rss&utm_medium=rss&utm_campaign=what-construction-attorneys-do Mon, 22 Jun 2026 17:23:44 +0000 https://constructionexec.com/?p=65708 Construction projects move quickly, and for contractors, the right legal guidance can mean the difference between protecting payment, controlling risk and losing leverage when disputes arise.

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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

Construction payment claims, mechanic's liens and bond claim deadlines for contractors

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 safety incident and OSHA inspection response for contractors

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

Construction contract termination and default notices for contractors

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 legal strategy built into contractor 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.

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House-Passed Faster Labor Contracts Act Is a Disgrace to Free Enterprise https://constructionexec.com/article/house-passed-faster-labor-contracts-act-is-a-disgrace-to-free-enterprise/?utm_source=rss&utm_medium=rss&utm_campaign=house-passed-faster-labor-contracts-act-is-a-disgrace-to-free-enterprise Tue, 16 Jun 2026 10:00:00 +0000 https://constructionexec.com/?p=65535 “The FLCA imposes arbitrary and unrealistic deadlines on employers to finalize negotiations with newly elected unions or face ‘binding interest arbitration of first contracts.’"

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WASHINGTON, June 9—Associated Builders and Contractors today blasted passage of the Faster Labor Contracts Act in the U.S. House of Representatives with the following statement:

“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.

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New Law Prompts ABC Minnesota/North Dakota to Design New Telecommunications Safety Training Program https://constructionexec.com/article/new-law-prompts-abc-minnesota-north-dakota-to-design-new-telecommunications-safety-training-program/?utm_source=rss&utm_medium=rss&utm_campaign=new-law-prompts-abc-minnesota-north-dakota-to-design-new-telecommunications-safety-training-program Tue, 12 May 2026 16:00:00 +0000 https://constructionexec.com/?p=65116 ABC Minnesota/North Dakota creates first-of-its-kind program for telecommunications installer safety training.

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On the first day of the year, a Minnesota law requiring installers of underground telecommunication infrastructure broadband, fiber or phone lines (when projects utilize directional drilling, and/or work is being conducted within 10 feet of existing utilities) to undergo a 40-hour certification went into effect.

Originally passed in mid-2024 and proposed to go into effect in July 2025, the law’s requirements were postponed until January 2026, giving ABC Minnesota/North Dakota—in partnership with NCCER and the Minnesota Cable Communications Association—time to roll out their Safety Qualified Underground Telecommunications Installer training program, which would ensure the workforce of their contractor members were certified.

When ABC MN/ND first caught wind of this law, it quickly set to work on designing this program from scratch. It would need to encapsulate enough classes to satisfy the 40-hour requirement, with both hands-on (in the field) and hands-off (digital classroom) training portions. It would need to include a training addendum for those looking to become program instructors. It would need to be flexible enough to accommodate the demands of sometimes unpredictable and often odd construction hours. It would need to be offered in both English and Spanish. And it would need to be designed in one year.

This law being the first of its kind in the country, there was no precedent for similar programs which the chapter could reference. So, it did not shock the chapter when it was approached by Minnesota Cable in late 2024 once this legislation had passed. With a relatively small staff, Minnesota Cable was conscious of the cap on its abilities to build out a bulky safety program like the one this law would require—but just as with ABC, their members needed it. “Minnesota Cable asked if ABC was interested in partnering,” says Adam Hanson, president of ABC MN/ND. “So, we went through a few meetings and agreed to take it on.”

But each association still took pause with just where and how to begin designing the program. So, NCCER was not shocked either when it received a call to action. 

Robert Jones, digital director of learning at NCCER, says, “It just made perfect sense for us to be able to support ABC. To make sure that this chapter is a leader in the state in training people how to work safely, and not just in broadband.”

Jones says they also saw the bigger picture—a national one—which influenced the type of program that they would build. “We built the program modularly,” he says. Of the seven courses, the first focuses specifically on Minnesota regulations; the other six focus on digging-safety and equipment skills. “We designed it so that if another ABC chapter came to us under similar circumstances, we are able to readily respond.”

Having worked closely with NCCER over the past several years, Hanson was confident in this next venture. “I knew that there was great opportunity there,” he says. He was also confident about the national influence a program like this could have on construction safety. “We were not only building this for Minnesota contractors.”

Perhaps the SQUTI program was built for something bigger than Minnesota, but—as it originated there—what did the contractors in Minnesota think of this program?

Director of Government Affairs for ABC MN/ND Joel Hanson says, “A lot of the feedback I got from contractors included ensuring that we weren’t just covering the bare minimum. If they’re going to have to put people through 40 hours of training, it should be worthwhile.” Hanson collected information on preexisting training that contractors were already applying, as well as supplemental activities to include. “We wanted to make this a good value for the contractors.”

Having been enacted for almost half a year now, the program is already increasing overall telecommunications safety awareness and implementation, and the more contractors who enroll and pass, the more feel and see the safety benefits. “ABC MN/ND is proud to help lead the rollout out of SQUTI”, says Janet Artmann, ABC MN/ND’s safety programs manager, “SQUTI strengthens our industry by elevating training expectations and reinforcing a culture of safety on every jobsite.”

At the time of this publication, there were 214 participants and 51 instructors enrolled; 171 of whom have already earned their orange cards—which will need to be renewed every three years.

This SQUTI certification program is already proving successful—and historical. Artmann says, “We’re always advocates for the safest, best way to do anything. Being the first program of this kind out there and already having nearly 200 orange cards, if we can keep that consistency going and keep in the forefront of people’s minds, I feel like its success will be organic and lasting.”

SEE ALSO: INFRASTRUCTURE: GOING AFTER IIJA-FUNDED WORK TWO YEARS LATER

The post New Law Prompts ABC Minnesota/North Dakota to Design New Telecommunications Safety Training Program first appeared on Construction Executive.

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Balancing the Right to Repair With Evidence Preservation in Construction Defect Litigation https://constructionexec.com/article/balancing-the-right-to-repair-with-evidence-preservation-in-construction-defect-litigation/?utm_source=rss&utm_medium=rss&utm_campaign=balancing-the-right-to-repair-with-evidence-preservation-in-construction-defect-litigation Thu, 09 Apr 2026 19:00:00 +0000 https://constructionexec.com/?p=64848 Neither owner nor tenant desires construction related litigation, but should it arise, here are some tips for preserving evidence and moving forward.

The post Balancing the Right to Repair With Evidence Preservation in Construction Defect Litigation first appeared on Construction Executive.

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Every major construction project comes with risk, whether it’s a warehouse build, a multifamily development or a major renovation. Parties tend to be aligned when things are proceeding as planned. But when something goes wrong—cracked concrete, water intrusion, systems that don’t perform as expected—those interests can quickly diverge.

Property owners are often caught in the middle when construction defects surface. They’re expected to act quickly to limit damage and costs. But they also have legal obligations to preserve evidence and allow potentially responsible parties, such as contractors or designers, to observe testing, demolition and repairs. Additionally, owners often have duties to lenders and investors to fix problems promptly and pursue claims against those responsible. Meanwhile, contractors and other parties have obligations of their own—not to interfere with repairs and not to delay mitigation efforts while investigations are underway.

What follows will examine how those competing responsibilities play out in construction defect disputes.

Understanding Evidence Spoliation

In simple terms, spoliation means destroying or failing to preserve relevant evidence when you know—or should know—that a legal claim is likely. For owners or parties in control of a property while defect testing and repairs are underway, the risks from spoliation vary. At a minimum, preserving evidence presents a major logistical task, from documenting conditions to saving removed materials and granting site access for other parties to review the issue. In the worst case, a construction defect claim can be thrown out of court if evidence is destroyed. A judge or arbitrator may also impose penalties such as limiting what evidence may be used later, including exclusion of the forensic investigation costs and damages associated with repair, during trial or arbitration.

The duty to preserve evidence only arises when a party knows or reasonably should know that a legal claim is likely, and that the evidence is relevant and material to that claim. If a reasonable person would expect a dispute based on the severity of the incident and other attendant circumstances, the duty to preserve evidence is triggered. If evidence is not preserved by party to the dispute, courts then weigh that party’s degree of fault, how much the missing evidence impacted the other party’s side, and whether a lesser penalty can address the problem fairly and deter future acts of spoliation.

Life Safety Comes First

When defects are discovered in a new building, an owner’s first obligation is safety. Bring in the appropriate experts, like structural or fire protection engineers, and conduct immediate inspections. Time is critical: An owner must make an initial determination about whether the defects could endanger occupants or other parties, such as construction workers, site visitors or passersby.

At the same time, the owner should make a reasonable attempt to notify potentially responsible parties, giving them the opportunity to observe the safety inspections while stressing the urgency of those parties mobilizing to make their own inspections. All involved parties should carefully document inspection conditions with photographs, recordings or notes, including date and time stamps as applicable. Once it’s confirmed that there are no immediate safety issues, the owner can then follow a detailed and orderly process to complete the remainder of any forensic or remedial activities.

The Gold Standard of Repairs: Transparency and Communication in Remedial Efforts

The first step when a property owner becomes aware of defects and that evidence must be preserved should be to identify and notify all the constituents on its “side”—such as property managers, forensic engineers or remediation contractors. The owner should put those parties on written notice that a formal plan is forthcoming that will outline evidence preservation obligations and how to proceed with repairs.  

The goal: Provide a clear evidence-preservation framework at the outset of the project and share it, along with the intended plan, with potentially culpable parties such as contractors, subcontractors, material suppliers and design professionals. This agreement should protect everyone’s right to inspect and test, while also making clear that inspections can’t unnecessarily disrupt the owner’s repair and damage mitigation efforts. Parties should be expected to coordinate their forensic teams to observe work in accordance with the agreed schedule and mobilize quickly—within 72 business hours or a similar timeframe—when new defects are discovered, to avoid undue delay to the owner’s repair progress.

Engineers and contractors should issue an initial schedule with weekly rolling three‑week updates, which the owner can share with other parties and document. Repairs may need to start and stop if new defect evidence is found or to accommodate planned inspections. Remedial contractors in particular should price the project in a way that “bakes in” such delays, so that the owner is not constantly bombarded with change orders and to mitigate contractor friction.

Additionally, the engineer or contractor must pause and notify the owner when areas of the property are opened up either for the forensic or remedial process and when new evidence of defects is discovered. The owner in turn should provide immediate written notice of a new defect and opportunity to observe or inspect to the potentially culpable party.

On complex projects, there may be numerous potentially responsible parties. All should work together and cooperate with the owner’s reasonable repair timeline. Delaying inspections or refusing to coordinate doesn’t stop repairs—it just creates problems and risks negative attention from a judge or arbitrator later.

Tenant or Resident Considerations

In occupied buildings, both the forensic and remedial activities must take into account tenants or residents that will have to be relocated while forensic and remedial activities take place. For example, in a multifamily project with a leaky roof, repairs will typically be performed in planned “stacks,” where tenants in a vertical stack of units—such as from floors one through four—are relocated. All parties then conduct phased forensic and remedial work according to a set schedule, complete that stack and proceed to the next.

The right of tenants, particularly when it is their place of residence, underscores the importance of cooperation amongst parties. Repairs and other forensic activities should focus on minimizing disruption to tenants and maximizing party cooperation. Timely issuance of and adherence to weekly look-ahead and repair schedules is crucial.

Addressing construction defects involves a careful balancing act between preserving evidence and preserving the owner’s right to repair. Owners must act decisively and swiftly when defects are discovered, especially if safety could be affected. At the same time, they must follow a clear, disciplined process for documenting conditions and preserving evidence so they don’t jeopardize their legal rights.

While risk cannot be fully eliminated, by putting a thoughtful evidence‑preservation plan in place and following it consistently, owners put themselves in a strong position to show they acted reasonably, limited damage and protected their ability to pursue claims against potentially culpable parties if needed.

Contractors, designers and other potentially responsible parties also need to understand these same pressures, cooperate with reasonable repair schedules and document their own observations. When everyone works within a shared framework, disputes are easier to manage—and projects are more likely to move forward without unnecessary escalation.

SEE ALSO: DATA CENTER DEBATE: THE EFFECT OF THE RATEPAYER PROTECTION PLEDGE

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Supreme Court Rules Tariffs Unconstitutional: Why the Construction Industry Shouldn’t Expect Calm Just Yet https://constructionexec.com/article/supreme-court-rules-tariffs-unconstitutional-why-the-construction-industry-shouldnt-expect-calm-just-yet/?utm_source=rss&utm_medium=rss&utm_campaign=supreme-court-rules-tariffs-unconstitutional-why-the-construction-industry-shouldnt-expect-calm-just-yet Wed, 04 Mar 2026 17:00:00 +0000 https://constructionexec.com/?p=63658 The wake of a recent Supreme Court ruling denoting the Trump tariffs unconstitutional poses many possibilities for construction.

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The U.S. Supreme Court’s 6–3 decision in Learning Resources, Inc. v. Trump did what many expected: It held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. What few anticipated was the speed of what followed: Within hours of the ruling, the administration announced replacement tariffs under Section 122 of the Trade Act of 1974, imposed a 10% global surcharge effective February 24, and signaled forthcoming Section 301 investigations against most major trading partners.

For those in the construction industry hoping the Learning Resources ruling would restore market stability, the message was unambiguous. The constitutional question may be settled, but the market disruption is not.

A Constitutional Boundary, Not a Market Correction.

The Court’s holding is significant. Writing for the six-justice majority, Chief Justice Roberts concluded that IEEPA’s grant of authority to “regulate … importation” does not include the power to impose tariffs—emphasizing that the statute contains no reference to tariffs or duties, that no President has read IEEPA to confer such power in the statute’s nearly fifty-year history, and that Congress has consistently used explicit language when delegating tariff authority.

In a plurality portion joined only by Justices Gorsuch and Barrett, Roberts went further, invoking the major questions doctrine to underscore that Congress must clearly authorize delegations of authority involving “economic and political significance,” particularly where the claimed power implicates a core congressional prerogative under Article I.

The decision invalidated every tariff imposed under IEEPA since early 2025, including the reciprocal tariffs on virtually all trading partners and the country-specific duties on Canada, Mexico and China that contributed to cost escalations for imported steel, aluminum, lumber, and equipment for the better part of a year. Notably, Justice Kavanaugh, joined by Justices Thomas and Alito, dissented, warning that the process of securing refunds for previously paid IEEPA tariffs will be a “mess.”

Most significantly for the construction market marketplace, the ruling was limited to tariffs imposed under IEEPA’s now-invalidated tariff authority and, therefore, left the executive branch room to explore other pathways for the imposition of tariffs. For example, Section 232 tariffs on steel and aluminum—now at 50%—remain untouched. Section 301 tariffs are unaffected by the ruling. And the administration’s new Section 122 surcharge—set at 10% in a signed proclamation, with the President announcing via social media his intent to raise the rate to the statutory maximum of 15%—applies broadly to imports from all countries not already covered by Section 232 or qualifying under the USMCA. For construction firms, tariff driven market disruption and volatility will likely remain.

Brief Relief, Then Reality

In the hours after the Learning Resources opinion was delivered, a cautious optimism swept through the marketplace. That sentiment faded quickly, however, as industry associations, like the Associated Builders and Contractors, projected modest reductions in prices for specialty equipment, HVAC systems and electrical components—but acknowledged that the structural cost pressures on core materials are likely to be materially unchanged.

The practical reality for the construction industry is that pricing is less affected by whether a tariff is technically lawful under one authority or another, and is far more affected by whether pricing is stable. Stability is likely to remain elusive, as recent patterns of tariff announcement, adjustment and readjustment show no sign of ending.

The Refund Question

One of the most consequential aspects of the ruling is found in its silence:  The opinion did not address whether importers are entitled to refunds for tariffs previously paid under IEEPA and, if so, how the refund process will be administered. By most estimates, the federal government collected upwards of $160 billion in IEEPA duties over the past year. Approximately 2,000 importers have already filed suit with the Court of International Trade to preserve their refund claims. That litigation is just beginning and is likely to extend for months, if not years.

For the construction industry, the refund issue is uniquely complex because the party that paid the tariff at the border is likely to own the refund claim, but the cost implications of the tariffs flowed throughout the market as the costs of construction inputs were adjusted to reflect the market disruptions.  Refunds, if they are ever to be issued, will flow to importers of record, with the consumers of wrongfully tariffed inputs likely excluded from cost recoveries.

Whether an importer has any obligation to pass tariff recoveries back through the supply chain will likely depend on each participant’s contracts, and many of those agreements were never drafted with retroactive tariff relief in mind.  Disputes at every tier of the supply chain should be expected. 

What Now?

The question construction professionals should be asking is not whether IEEPA supports tariffs. The Court answered that question definitively:  it does not. The question is whether tariffs will continue to be deployed as a primary policy instrument of the executive branch, and the administration’s response to the Learning Resources opinion leaves no room for doubt on this important question. Tariffs and market disruptions are here to stay for the foreseeable future.  Almost immediately after the Learning Resources opinion was rendered, U.S. Trade Representative Jamieson Greer announced that Section 301 investigations will be initiated “in short order” against most major trading partners. Multiple Section 232 investigations are already pending. And if those actions evolve into new tariffs, market volatility can be expected to continue.

There was some hope that a Supreme Court ruling would bring clarity and reduce tension in the marketplace. Constitutionally, the Court drew a bright line and rejected one of the broadest assertions of unilateral executive trade authority in modern history.  The Learning Resources decision will have historical resonance for its reaffirmation of the separation of powers among coequal branches of government.  Economically, however, the import markets will remain unsettled and the cost structure for construction inputs has not fundamentally changed. 

The industry should proceed on the assumption that new tariffs will be announced with limited notice, that legal challenges will take time to work through the courts, and that alternative tariff strategies will follow adverse rulings, as the administration seeks to preserve one of its most favored policy tools. Even after tariffs are lifted, as in the Learning Resources case, refund litigation could persist for years, extending uncertainty well beyond the initial imposition of the tariff itself. This, however, does not mean that projects will stall or investment will be deterred. Markets adapt, as pricing models, financing structures, and contracting adjust to reflect the reality of the marketplace. The Court resolved an important constitutional question. It did not bring an end to tariff-driven market disruption.

SEE ALSO: CONSTRUCTION MATERIALS PRICES SURGE AGAIN IN JANUARY, DRIVEN AGAIN BY TARIFFS

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