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 BlogIn 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)
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Pillsbury's Construction & Real Estate Law Team
From Dark Data to Building Intelligence
July 13, 2026 —
Aarni Heiskanen - AEC BusinessIn this episode, I talk with Mark Sorsa-Leslie, founder and CEO of
Auttaa AI, whose team just won first place in Luotea’s inaugural hackathon in Helsinki for turning property maintenance from reactive firefighting into proactive forecasting with AI. Mark is a chartered surveyor with 30 years of real estate data experience, previously the founder of the UK sensor company Beringar.
We discuss why so much building data stays dark and siloed, from outdated networking technology to the shortage of people who understand both engineering and property. Mark explains how Auttaa bridges real-time building data with large language models, using what he calls an “influence graph” to surface correlations and causation across previously disconnected systems, such as linking occupancy patterns to CO2 readings to diagnose ventilation problems in minutes rather than days.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Project Labor Agreements: A New Bid Protest Forum Split
May 14, 2026 —
Dirk D. Haire, David P.J. Timm and Michael J. Brewer - ConsensusDocsAdvertisements often include a disclaimer: “individual results may vary.” Similarly, lawyers are notorious for saying “it depends.” The mandatory Project Labor Agreement (“PLA”) regulations have recently placed into context this adage as it applies to federal contract bid protests, with very different results depending on which forum – the Court of Federal Claims (“COFC”) versus the Government Accountability Office (“GAO”) – different contractors have selected to bring PLA bid protests.
Over the last two years, over 30 protesters have successfully achieved removal of mandatory PLAs from large-scale federal construction contracts based on two landmark bid protest decisions issued by the COFC. Similar challenges to PLAs at the GAO, however, have not been successful in removing PLAs, highlighting an emerging trend that the COFC is often a more effective relief forum than GAO for government construction contractors.
Reprinted courtesy of
Dirk D. Haire, Burr & Forman LLP,
David P.J. Timm, Burr & Forman LLP and
Michael J. Brewer, Burr & Forman LLP
Mr. Haire may be contacted at dhaire@burr.com
Mr. Timm may be contacted at dtimm@burr.com
Mr. Brewer may be contacted at mbrewer@burr.com
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New Executive Order Prohibits Federal Contractors from Engaging in DEI Through Employment and Procurement Activities
April 27, 2026 —
Laura De Santos & Monica Prieto - Gordon Rees Scully MansukhaniOn March 26, 2026, President Trump signed Executive Order 14398, entitled Addressing DEI Discrimination by Federal Contractors, requiring federal agencies to add contractual language in all federal contracts prohibiting contractors and subcontractors from engaging in any racially discriminatory DEI activities, as defined by the Executive Order (EO).
While this EO includes language similar to prior DEI-related orders, it introduces a significant expansion in enforcement by subjecting non-compliant contractors to liability under the False Claims Act (FCA), including exposure to whistleblower actions and qui tam litigation. A qui tam claim is a civil action by a private individual on behalf of the government alleging fraud against federal programs and seeking to recover damages.
The new EO states that involvement in any racially discriminatory DEI activities is not only unethical and illegal, but also deemed fraudulent against federal programs because it is material to the government’s payment decisions. The definition of DEI activities here matters, as this EO expands a contractor’s obligations beyond the management of its employment policies and includes prohibitions against funding or expending time or resources on DEI activities and contracting with subcontractors, vendors, or suppliers utilizing DEI programs.
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Laura De Santos, Gordon Rees Scully MansukhaniMs. De Santos may be contacted at
ldesantos@grsm.com
In the Eye of the Beholder: Court of Appeal Finds Duty of Care Owed by Owner and Contractors for Death of Minors Caused by Independent Truck Driver
May 05, 2026 —
Garret D. Murai - California Construction Law BlogI was a T.A. for my high school history teacher, a really smart and nice guy, Mr. Reynolds. In the room at the back of the classroom which served as his office he had
the picture above. It’s called “My Wife and My Mother-in-Law” and is taken from a German postcard from 1888. Depending on how you look it, you might see fashionable young lady, or an old lady.
Cases can sometimes be like that: You see what you want to see. The next case is also like that.
In
Lorenzo v. Calex Engineering, Inc., 110 Cal.App.5th 49 (2025), the 2nd District Court of Appeals reversed a motion for summary judgment granted in favor of an owner and its contractors in a case involving the death of two minors struck by a dump truck enroute to a non-permitted off-site staging area.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Substantial Evidence of Flood Loss is Not a Substitute for Required Proof of Loss
April 20, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insurer properly denied the insured’s claim for loss due to flood because a proof of loss was never submitted. Bay Haven at Coco Bay Condominium Association, Inc. v. Hartford Ins. Co. of the Midwest, 2026 U.S. Dist. LEXIS 6847 (M.D. Fla. Jan. 14, 2026).
Bay Haven managed several condo buildings. When Hurricane Ian hit, it caused significant flood damage to these properties. Bay Haven held federal flood insurance policies through Hartford under “Write-Your-Own” policies. This meant Hartford was essentially a fiscal agent that managed policies and handled claims but paid them using federal funds.
Following the storm, FEMA extended the usual 60-day deadline for filing a proof of loss to one year, or until September 28, 2023. Bay Haven did not submit its proofs of loss until November 2023. FEMA granted an extension but only for the specific amounts in the November requests. Hartford did not waive the 60-day proof of loss requirement for any other proof of loss. Hartford paid the amounts reflected in the November submissions.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions
May 12, 2026 —
David Adelstein - Florida Construction Legal UpdatesContract drafting and interpretation matters.
A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case
here where the appellate court reversed based on the prefatory language.
But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:
Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
David Samani Joins BHBA Podcast on Mediation Best Practices
May 05, 2026 —
Lewis BrisboisLos Angeles Partner David Samani recently joined a Beverly Hills Bar Association (BHBA) podcast titled, “Mediation 360: Preparation from the Defense, Plaintiff, and Mediator Perspectives,” during which he shared his insights on various aspects of the mediation process. Mr. Samani, along with a plaintiff’s attorney and a mediator, presented their thoughts on topics including how to determine whether a case is appropriate for mediation, preparing to mediate a case, communicating with clients, and handling the mediation itself.
Mr. Samani explained that early communication with clients is critical so that attorneys may learn what a client’s objectives are and develop an assessment of the case. He described that “from an early stage,” attorneys should determine the cost of litigation and ensure that the client understands “what an aggressive defense might entail.” As the matter progresses, attorneys and clients should “continue the dialogue” regarding costs as well as the strengths and weaknesses of the case, “making sure the client is apprised of the various alternatives that exist.” In addition, Mr. Samani discussed factors to consider when choosing a mediator, noting, “All mediators have their own styles and backgrounds.” He explained that some cases may call for a mediator with specialized knowledge in a particular area such as bankruptcy or securities, while other mediations may benefit from a mediator who understands the realities of private practice.
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Lewis Brisbois