No Bad Faith Despite Insurer’s Appraisal Award Exceeding Initial Payment
August 03, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insurer’s motion for summary judgment, finding no bad faith despite the appraisal award exceeding the amount the insurer initially paid. Jazi Kat 4659 Rockridge LLC, et al. v. Travelers Cas. Ins. Co. of Am., et al., 2026 U.S. Dist. LEXIS 105634 (D. Ariz. May 13, 2026).
Plaintiffs sued Travelers for breach of contract and bad faith, alleging that Travelers failed to pay money plaintiffs were owed under the policy. Plaintiffs held a commercial property policy for two properties. A fire destroyed one of the properties. Travelers adjusted the claim and issued two payments. Plaintiffs disagreed with the amount of the payments and demanded an appraisal. Travelers agreed to the appraisal.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Companies Are Nearly Seven Times Safer With These Best Practices
June 15, 2026 —
ABC - Construction ExecutiveWASHINGTON, May 4—Associated Builders and Contractors released its
2026 Health and Safety Performance Report, an annual guide to health and safety best practices on construction jobsites. The 2026 report shows the positive effects of participating in
ABC’s STEP® Health and Safety Management System, which enables top-performing ABC members to achieve incident rates 686% safer than the U.S. Bureau of Labor Statistics construction industry average, reducing total recordable incident rates by 85%.
Established in 1989, STEP is a proven system that provides contractors and suppliers with a
robust, no-cost framework for measuring health and safety data and benchmarking with peers in the industry. This self-assessment tool helps participants identify real opportunities for scalable growth in their health and safety programs to lower their total recordable incident rates and become an employer of choice in a competitive labor market.
Reprinted courtesy of
ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Attorneys: Contract Negotiation Strategy
September 01, 2026 —
Construction ExecutiveContract negotiation is where project expectations become enforceable business obligations. A reasonable bid can become a high-risk agreement when the final contract expands the scope, shortens notice periods, limits payment rights or transfers liability that was never included in the price. Construction attorneys help project leaders identify those consequences before execution.
Their role is not to eliminate every risk or prolong negotiations. It is to determine which risks can be controlled, insured, priced, shared or rejected while preserving a workable deal. The financial stakes can be substantial.
HKA's 2025 analysis of more than 2,200 distressed construction and engineering projects found that disputed costs averaged 33.4% of contract budgets. Scope changes affected more than 28% of the projects studied and remained the most common cause of conflict. In North America,
the average dispute studied by Arcadis in 2024 had a value of $60.1 million and took 12.5 months to resolve.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Arbitration in Construction Disputes: Process and Best Practices
July 27, 2026 —
Construction ExecutiveArbitration in construction disputes is a private process where owners, contractors, subcontractors, designers or suppliers present claims to one or more neutral arbitrators instead of taking the dispute through court. The arbitrator reviews evidence, hears testimony and issues a decision that is usually binding.
Construction arbitration is common because project disputes are technical, document-heavy and time-sensitive. Claims may involve schedule delays, disputed change orders, defective work, differing site conditions, payment, termination, indemnity, surety issues or professional liability.
Arbitration can be faster and more specialized than litigation, but speed is not guaranteed. Poor contract language, broad discovery, weak records and unclear damages can make arbitration expensive.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Bona Fide Dispute Defeats Violation of Prompt Payment Act
June 15, 2026 —
David Adelstein - Florida Construction Legal UpdatesMost, if not all, jurisdictions, including the federal government, have what is known as a “Prompt Payment Act.” The objective is to ensure prompt payment. If prompt payment is not made, the Prompt Payment Act provides for interest penalties, as well as potentially other costs such as attorney’s fees.
But the thing is, it’s not as simple as untimely payment to support the recourse and interest penalties the applicable Prompt Payment Act affords. And the teeth associated with the applicable Prompt Payment Act are not as sharp as perhaps the party claiming untimely payment prefers.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Pay-If-Paid: What You Need to Know Before Signing on the Dotted Line
August 03, 2026 —
Christian Fernandez & Matthew Racioppo - Snell & WilmerBuried deep in the fine print of a subcontract, a pay-if-paid clause may be looming. If you are a subcontractor or supplier, misreading these clauses can put your cash flow at risk. If you are an owner or general contractor, drafting them incorrectly can leave you with obligations you never intended — or unenforceable protections you were counting on.
It is more important than ever to understand when pay-if-paid clauses hold up and when they do not, as well as recent litigation and drafting trends. Whether you are negotiating a new agreement, reviewing your standard form contracts, or staring down a payment dispute, understanding how Arizona law treats pay-if-paid clauses is essential. In this article, we break down key considerations, walk through the legal standards Arizona courts apply, and offer practical tips to consider to help you protect your payment rights on the next project.
Reprinted courtesy of
Christian Fernandez, Snell & Wilmer and
Matthew Racioppo, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com
Mr. Racioppo may be contacted at mracioppo@swlaw.com
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Defend Now, Allocate Later? An Unresolved Tension in Colorado Construction Law
August 16, 2026 —
David McLain - Colorado Construction Litigation BlogFor decades, Colorado law has recognized an important distinction between the duty to defend and the duty to indemnify. The former ordinarily arises at the beginning of litigation; the latter generally cannot be determined until the underlying liability is known. That distinction makes intuitive sense. A defense that becomes due only after litigation concludes is not much of a defense.
But Colorado’s construction anti-indemnity statute, C.R.S. § 13-21-111.5(6), raises an interesting question about how that familiar rule operates in construction disputes. The statute expressly regulates contractual obligations not only to indemnify, but also to insure and defend, and it reflects a legislative policy that construction businesses should bear financial responsibility for their own negligence.
Those principles have developed along separate tracks. At some point, a Colorado appellate court may have to decide precisely how they fit together.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Mandatory Arbitration Isn’t All Bad, if. . .
July 13, 2026 —
Christopher G. Hill - Construction Law MusingsIn the past week or so mandatory arbitration has been all the rage. From those that argue that
arbitration is becoming more burdensome than litigation, to my friend and fellow construction attorney Scott Wolfe who gives great advice on how to make arbitration worth it again. You can place me in the camp of those that think that mandatory arbitration clauses of the type typically found in contracts can add a layer of expense that can be unnecessary.
However, if an arbitration clause is carefully drafted, and properly used, these clauses an be helpful in assuring that the streamlining effect for which arbitration was created actually occurs. Because the
contract is king in Virginia, these provisions can essentially create the rule of civil procedure used to resolve any dispute relating to the project.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com