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Real Estate & Construction News Roundup (7/8/26) – Data Centers Negotiate Flexibility for Speed, Hotel Deal Activities Focus on Luxury, and DC Sues Apartment Owners

July 20, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!

• Hyperscalers want their data centers online, and utilities want to provide interconnections, but both are still looking for common operating guidelines. (Herman K. Trabish, Construction Dive)
• Contractors are taking advantage of multibillion-dollar train and transit contracts, even as funding challenges create hurdles for project execution. (Matthew Thibault, Construction Dive)
• Although hospitality and leisure M&A deal volume was down 2.5% in the first half of 2026 compared to the prior six months, investors are concentrating on the upper end of the market, including luxury hotels, wellness resorts and gaming, or “data-rich,” platforms. (Noor Adatia, Hotel Dive)

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

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DOI Finalizes Long-Awaited Modernization of Type A Natural Resource Damage Assessment Regulations

August 03, 2026 — Amanda G. Halter, Ashleigh K. Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law Blog
For nearly three decades, the U.S. Department of the Interior’s (DOI) simplified “Type A” Natural Resource Damage Assessment (NRDA) regulations were available more in theory than in practice, constrained by dated models, narrow geographic applicability and a $100,000 cap that rarely matched the economics of modern environmental claims. DOI has now finalized revisions to the Type A natural resource damages assessment procedures under 43 C.F.R. Part 11 for hazardous substance releases under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Clean Water Act (CWA), with the final rule published in the Federal Register on July 13, 2026 and scheduled to become effective August 12, 2026. As discussed previously, DOI has sought to modernize what it views as an “inefficient and inflexible” process and restore the Type A procedure to its intended role as a more streamlined pathway for smaller, less contentious NRD claims. The final rule adopts a $5 million default damages threshold, allows use above that amount if all parties agree, clarifies that Type A may be used in all environments and for all natural resource types, and removes legacy model appendices that had tethered the process to outdated formulas. Reprinted courtesy of Amanda G. Halter, Pillsbury, Ashleigh K. Myers, Pillsbury and Jillian Marullo, Pillsbury Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Read the full story...

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PJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load Demand

May 12, 2026 — Stephen J. Humes, Alicia M. McKnight, Jason Drogin Atwood & Andrew H. Jacobs - Gravel2Gavel
In January, we discussed the Statement of Principles jointly signed by the National Energy Dominance Council and governors across the mid-Atlantic region—framing accelerating demand (especially from large-scale data centers) as an emergency reliability issue for PJM Interconnection, L.L.C. (PJM), the nation’s largest power grid operator. That policy signal is now becoming a near-term, accelerated procurement and contracting exercise. On April 8, 2026, PJM notified stakeholders of a critical issue fast path reliability backstop procurement process. PJM subsequently released a request for information (RFI) with respect to a proposed Reliability Backstop Procurement (RBP)—a one-time mechanism intended to attract significant new capacity to address projected reliability shortfalls driven by large-load growth. RBP compresses what is often a multiyear market and regulatory conversation into a fast-moving set of commercial choices. Developers, large loads, utilities and capital providers should be preparing now for (i) an accelerated bilateral contracting window and (ii) a standardized PJM-led backstop procurement if bilateral deals do not clear enough capacity. Reprinted courtesy of Stephen J. Humes, Pillsbury, Alicia M. McKnight, Pillsbury, Jason Drogin Atwood, Pillsbury and Andrew H. Jacobs, Pillsbury Mr. Humes may be contacted at stephen.humes@pillsburylaw.com Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com Read the full story...

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Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law

June 29, 2026 — Brenda Radmacher - The Construction Seyt
Daily Journal (California) featured an article by Construction Law partner Brenda Radmacher, “A new path for construction defects in California.” The piece, published on June 15, 2026, examines Assembly Bill 1903 and its potential to significantly reshape California’s construction defect framework, particularly for common interest properties. The article highlights how AB 1903 would overhaul the state’s current right-to-repair system by mandating completion of prelitigation procedures, raising requirements for defect claims, strengthening developers’/builders’ rights to repair, and introducing a voluntary “certified building” program. The legislation aims to rebalance competing interests by reducing litigation-driven costs while preserving protections for homeowners. Read the full story...
Reprinted courtesy of Brenda Radmacher, Seyfarth Shaw LLP
Ms. Radmacher may be contacted at bradmacher@seyfarth.com

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GRSM Ranked Among Texas’ 50 Largest Law Firms by Texas Lawyer

August 03, 2026 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani has been recognized byTexas Lawyer in its 2026 Texas 100 ranking, earning the No. 49 spot among the state’s largest law firms by attorney headcount. The annual report spotlights the continued strength of Texas’ legal market, with firms across the state collectively increasing lawyer headcount by 2% in 2025. “Texas continues to be one of the country’s most thriving legal and business markets, and we are proud to be recognized among the state’s largest law firms,” said Laura De Santos, Regional Oversight Partner for Texas. “Our continued growth shows the confidence our clients place in us, the exceptional talent of our attorneys, and our commitment to delivering seamless, high-quality legal services throughout Texas and across our 50-state platform.” Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani

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Did You Know: Unique Legal Considerations for Animal Care Facilities

August 24, 2026 — Hannah Skidmore - Construction Executive
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. Reprinted courtesy of Hannah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Supply Chain Is a Legal Exposure—Not Just a Force Majeure Problem

September 08, 2026 — Owen Newman - Construction Executive
This is not another force majeure article. The supply-chain related legal exposure that contractors are carrying today—in sanctions risk, specification non-compliance, warranty exposure and regulatory volatility—extends well beyond what even a well-drafted force majeure clause protects. An engineering, procurement and construction contractor on a gas-fired power plant discovers during commissioning that transformer oil in a critical unit contains Russian-origin naphthenic base oil, which is a prohibited source under Office of Foreign Assets Control sanctions. The contractor didn’t source it. A subsupplier two tiers below made the substitution when disruptions in the Strait of Hormuz tightened the primary supply chain for this specialty product and no one in the purchase-order chain flagged it. The procurement decision is long done and the documentation trail that should have caught it doesn’t exist. Reprinted courtesy of Owen Newman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...
Mr. Newman may be contacted at oknewman@duanemorris.com

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Communication Gaps Can Cost Construction Firms in the Data Center Boom

June 02, 2026 — Mike Lewis - Construction Executive
The data center construction boom is transforming the construction industry at a historic pace. Fueled by cloud computing, artificial intelligence and relentless demand for digital infrastructure, data centers have become one of the fastest-growing project types in the built environment. Billions of dollars are flowing into new facilities and expansions, creating unprecedented opportunities for construction firms positioned to deliver reliably. But opportunity alone does not guarantee success. As competition intensifies, communication failures and poor information management are emerging as some of the most common (and costly) reasons firms lose margins, miss deadlines or fail to secure repeat work. In data center construction, where schedules are compressed and tolerance for error is minimal, even small breakdowns in communication can have outsized consequences. Reprinted courtesy of Mike Lewis, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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