Beacon Iowa Construction Expert Witness Directory

Limitations of Liability Provisions in Construction Contracts: A Means to Manage Risk and Limit Financial Exposure

June 23, 2026 — Ellen Chapelle, Richard Reizen, Hannah Batsche - Construction Executive
Taking a cue from architects and engineers, construction contractors have started inserting limitation of liability clauses in their construction contracts to manage risk and limit financial exposure. This article will address the specific risks that can be limited through an LOL, tips for negotiating the LOL terms with reluctant owners to cover those specific risks, how to limit unintended consequences of an LOL (such as relieving an insurer of its obligations to cover certain losses), and approaches to setting the amount of the liability cap in the LOL. Addressing Particular Risks An LOL can address a wide range of risks, including:

Damages for delay
Liability for non-conforming or defective work
Liability for third-party bodily injury or property damage
Liability excluded by a general liability policy (e.g., pollution and cyber liability)
Liability related to intellectual property

Engineering Seals Versus Contracts ‘Under Seal’ (Two Very Different Things)

May 05, 2026 — Melissa Dewey Brumback - Construction Law in North Carolina
Recently, I was asked by a reader to explain the difference between a document that is ‘sealed’ by an engineer (or architect) and one that is signed ‘under seal’. This question prompted this post, as others may also be wondering about the distinction. [Hi Ed! Thanks for your question] Professionals have ‘seals’ that show that they are registered (Engineers) or licensed (Architects). As most of you likely know, your professional seal is something that is hard won and which is used when—and only when—your plans were made by you or someone under your direct supervisory control. Your signature represents that you were in responsible control over the documents, and that they have met the required professional standard of care. (21 NC Admin Code 2-0206 (a)(11)). Read the full story...
Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett PLLC
Ms. Brumback may be contacted at mbrumback@rl-law.com

Wisconsin Supreme Court Finds Coverage Under Ensuing Loss Provisions

September 29, 2026 — Tred R. Eyerly - Insurance Law Hawaii
Reversing the trial court’s grant of summary judgment to the insurer, the Wisconsin Supreme Court determined that genuine issues of material fact existed on whether ensuing losses as defined in the policy were covered. Cincinnati Ins. Co. v. Ropicky, 2026 Wisc. LEXIS 302 (Wis. July 7, 2026). The insured suffered damage during a storm on May 11, 2018, when rainwater poured into the home. The insureds gave notice to their insurer, Cincinnati. Upon inspection, Cincinnati determined that water intrusion resulted from multiple construction defects in the home. In the front of the home, water entered through a gap in the stone veneer. The inspector also concluded that the damage from rainwater was not just from the May 11, 2018, storm, but damage had occurred from prior storm events. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Texas Prepares to Restart Data Center Construction, with Around 300 Projects Under Review And 6,608 MW Awaiting Energization Approval, Driving Demand for Rapid-Response Lifting Operations

October 20, 2026 — Sarens
Texas is experiencing an unprecedented increase in power demand. The ERCOT (Electric Reliability Council of Texas) power grid reached a record peak demand of 91.1 GW in summer 2026, 6% above the previous record, according to the U.S. Energy Information Administration (EIA). This is compounded by interconnection requests totaling around 474 GW, more than five times the record peak, with approximately 90% of these requests related to data centers, according to the Office of the Governor of Texas. Within this context, authorities have launched a comprehensive review process. In August , the Governor directed the Public Utility Commission of Texas (PUCT) and ERCOT to audit all data centers progressing toward grid connection, covering around 300 projects. ERCOT has also suspended approvals to energize data centers of 75 MW or more and has set December 10 as the date for the publication of its reports. For the industry, this pause creates a valuable planning window. Goldman Sachs notes that it takes 18 to 24 months to build a data center once permits have been secured, while only 50% to 60% of planned capacity is delivered on schedule. Supply chain constraints and labor shortages are among the most common causes of delays. In this context, construction agility is becoming increasingly critical. A one-month delay at a typical 60 MW U.S. data center is estimated to cost up to $14.2 million in lost revenue, additional costs and penalties, according to STL Partners data. Against this backdrop, Sarens, which has operated in the U.S. since 2009 and is headquartered in Houston, with offices also in Odessa and Beaumont, positions as a logistics partner for developers and contractors preparing for the execution phase. Read the full story...
Reprinted courtesy of Sarens

Introducing the Updated 2026 Pillsbury Guide to Data Centers

June 08, 2026 — Gravel2Gavel Team - Gravel2Gavel Construction & Real Estate Law Blog
Since the initial publication of the Pillsbury Guide to Data Centers in 2025, the market has continued to evolve—most notably with respect to power availability, energy strategy, tax and incentives planning, and investment activity across the sector. While many of the legal, commercial and regulatory frameworks addressed in the original Guide remain durable and relevant, recent developments warranted targeted updates and additions. The 2026 edition expands and updates our energy-focused content to reflect the increasingly central role of power procurement, interconnection and long-term energy strategy in data center development. We have incorporated new materials addressing power purchase and interconnection agreements, solar and other renewable energy solutions, advanced reactor designs, and nuclear-powered data centers projects, including an updated project tracker. We have also added new analysis covering state and local tax considerations and incentive structures relevant to data center development and operations, as well as current M&A and private equity trends shaping investment in the sector. Read the full story...
Reprinted courtesy of Gravel2Gavel Team

Anomaly in Adding a Third-Party Claimant to a Liability Insurance Coverage Dispute

May 05, 2026 — David Adelstein - Florida Construction Legal Updates
In an insurance coverage lawsuit seeking declaratory relief, an insurer sued the third-party claimant. The insurer was seeking a declaration that there was no coverage, which naturally would impact the third-party claimant. The insured did not respond to the lawsuit and the insurer moved for a default judgment which was objected to by the third-party claimant. The trial court granted a final judgment in favor of the insurer, which prompted an appeal from the third-party claimant because the final judgment impacts its rights to coverage if it obtains a judgment against the insured. The appellate court reversed but please take a look at this Court’s discussion on the issue of an insurer adding a third-party claimant to a coverage lawsuit when then the third-party cannot pursue a direct claim against the insurer until it obtains a settlement or judgment against the insured. It presents an interesting argument and counter-point for a third-party claimant that is added to the coverage lawsuit which has implications if it obtains a judgment against the insured: This case involves an apparent anomaly in Florida law. It is well-established that third-party claimants injured by an insured’s negligence have a right as third-party beneficiaries to payment from the insured’s insurance proceeds. It is equally well-established that the third-party claimants’ rights in this regard do not accrue unless and until they obtain a verdict or settlement against the insured. A quick review of this law is helpful at this point. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

D.C. Circuit Upholds EPA’s CERCLA Hazardous-Substance Designations for PFAS as State-Law Settlements Highlight Expanding Liability Landscape

September 15, 2026 — Ashleigh K. Myers, Amanda G. Halter, Jillian Marullo & Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog
On August 18, 2026, a unanimous panel of the U.S. Court of Appeals for the D.C. Circuit upheld the 2024 designation by the U.S. Environmental Protection Agency (EPA) of perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund). (See Chamber of Commerce of the United States of America, et al. v. EPA, No. 24-1193 (D.C. Cir. Aug. 18, 2026).) The decision leaves EPA’s PFOA and PFOS hazardous substance designations in place and provides guidance on the scope of EPA’s authority to make future hazardous substances designations under CERCLA Section 102(a). The decision also likely resolves a challenge to the rule that has spanned two presidential administrations. After taking office, the Trump administration had obtained an abeyance of the litigation challenging the Biden-era rule while EPA reconsidered its position. In September 2025, EPA informed the court that it had decided to retain the designations, while signaling that it would work with Congress and industry to address CERCLA liability concerns for “passive receivers.” The litigation then resumed, with the current Administration defending the rule. Reprinted courtesy of Ashleigh K. Myers, Pillsbury, Amanda G. Halter, Pillsbury, Jillian Marullo, Pillsbury and Anthony B. Cavender, Pillsbury Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com Read the full story...

The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues

August 03, 2026 — William L. Porter - Porter Law Group
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction. Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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