Massachusetts Construction Industry Continues to Wait While Prompt Payment Law Is Put to the Test
March 31, 2026 —
Catherine Maronski - Construction Law ZoneEarlier this month, the Massachusetts Supreme Judicial Court (SJC) heard argument in J.C. Cannistraro, LLC v. Columbia Construction Co. et al., a dispute concerning the state’s Prompt Payment Act (PPA). Although a decision has yet to be issued, it could potentially pose widespread implications for high-value private construction projects moving forward – and perhaps backwards.
The PPA, G. L. c. 149, § 29E, enacted by the Massachusetts Legislature in 2010, has become a keystone in the construction industry. It was enacted to address, in part, downstream cash flow issues that tend to pervade construction projects by mandating a series of strict guidelines for submitting, and responding to, payment applications for private projects valued over $3,000,000. Amongst these requirements are set timeframes to respond to an application, as well as what must be contained in an application rejection. Critically, if an owner or upper-tier contractor fails to fully comply with all the statutory requirements in response to a proper payment application, the application is automatically “deemed to be approved” and payable. Significantly, however, this is not always the end of the line.
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Catherine Maronski, Robinson ColeMs. Maronski may be contacted at
cmaronski@rc.com
Louisiana Legislature Enacts Act 932 – Significant Changes to Insurer Bad-Faith Exposure for Failure to Settle
July 13, 2026 —
Tabitha R. Durbin & Jennifer E. Michel - Lewis BrisboisThe Louisiana Legislature has enacted Act 932 (formerly House Bill 1162), which became law this week without the Governor's signature pursuant to the Louisiana Constitution, after expiration of the applicable constitutional review period. Act 932 makes several important amendments to Louisiana's insurer bad-faith statute and appears intended, at least in part, to address issues arising from the Louisiana Supreme Court's decision in Kelly v. State Farm Fire & Casualty Co., 169 So.3d 328 (La. 2015). The Act also makes changes regarding claim payments involving licensed contractors. The Act takes effect on August 1, 2026.
Key Takeaways
Act 932:
- Limits certain bad-faith causes of action (bad faith failure to settle) involving personal injury and bodily injury claims where good-faith disputes exist or where an insurer has not been afforded sufficient opportunity to respond to a settlement demand.
- Requires insurers and adjusters to verify a contractor's Louisiana license status before issuing claim payments when a contractor is named as a payee on a check for repair or restoration of immovable property.
- Creates a statutory safe harbor protecting insurers from bad-faith penalties and attorney fees when payment delays result from an inability to verify a contractor's license, provided specified documentation and notice requirements are met.
Reprinted courtesy of
Tabitha R. Durbin, Lewis Brisbois and
Jennifer E. Michel, Lewis Brisbois
Ms. Durbin may be contacted at Tabitha.Durbin@lewisbrisbois.com
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com
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California Enacts Change Order Fair Payment Act
March 24, 2026 —
Michael J. Baker - Snell & WilmerFor private works construction contracts entered on or after January 1, 2026, recent legislation establishes a claims and dispute resolution process for change orders. The law is codified at Civil Code § 8850. A synopsis of the pertinent provisions includes the following:
- Submitting a Claim. Contractors or subcontractors must submit a detailed, documented claim when requesting additional time or payment.
- Owner’s Response Time. The owner must meet and confer within thirty (30) days after receiving the claim. Within ten (10) days of meeting, the owner must provide a written statement identifying which portions of the claim are undisputed and which are disputed. An owner’s failure to respond is treated as disputing the entire claim.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com
What Massachusetts Contractors and Developers Can Learn from Cannistraro v. Columbia Construction
July 13, 2026 —
Anthony LaPlaca & Luke Marston - The Construction SeytIntroduction
On June 26, 2026 the Massachusetts Supreme Judicial Court issued its decision in J.C. Cannistraro, LLC v. Columbia Construction Co.—a holding that sits at the intersection of Prompt Pay Act compliance and the Massachusetts Arbitration Act.
[1]
Most already know that the Massachusetts Prompt Pay Act (PPA) imposes strict timing and certification requirements for rejecting payment applications and proposed change orders on projects valued at $3 million or more. Most notably, the PPA requires the paying party to give the payee written notice of its approval or rejection of progress applications and proposed changes within 15 days of receipt, which notice must include a “factual and contractual basis for the rejection” and must be “certified as made in good faith.”
[2] In the absence of a timely certified notice, payment is “deemed to be approved” unless the payor properly rejects payment before it comes due.
[3]
Reprinted courtesy of
Anthony LaPlaca, Seyfarth Shaw LLP and
Luke Marston, Seyfarth Shaw LLP
Mr. LaPlaca may be contacted at alaplaca@seyfarth.com
Mr. Marston may be contacted at lmarston@seyfarth.com
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At the Intersection of Indemnity and Prevailing Wages
March 17, 2026 —
Garret Murai - California Construction Law BlogIn a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages.
The Nabors Case
In
Nabors Corporate Services, Inc. v. City of Long Beach, 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands Oil Production Company and the City of Long Beach after it was found liable in a class action lawsuit for failing to pay prevailing wages to its employees. Nabors’ contract with Tidelands did not require the payment of prevailing wages and neither Tidelands nor the City believed that the project, which involved “oil well plug and abandonment” work, required the payment of prevailing wages.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Predict Risk, Not Incidents: A New Analytics Framework for Your Construction Safety Data
August 03, 2026 —
Tabrez Zahoor - Construction ExecutiveBehind every “zero-incidents” company report, hidden hazards may already be accumulating—
risks that could become serious injuries tomorrow. The question every executive should be asking is not, “Did anything go wrong last month?” It is: “Where is risk building on my projects right now?”
Most construction organizations cannot answer that question. Not because the data does not exist—it does. Every active project generates daily inspection findings, labor records, near-miss reports and audit results. The problem is that standard safety systems collect this data and then report it in ways that make it operationally useless for prevention. They describe the past. They predict nothing.
The predictive safety analytics framework (PSAF) is a practical, deployable system developed from years of applying data science to large-scale construction portfolio operations that takes the safety data construction organizations already collect and transforms it into a forward-looking risk signal. The result? A single weekly score that tells executives where risk is concentrating across their portfolio before anyone gets hurt.
Reprinted courtesy of
Tabrez Zahoor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Samuel Alhadeff Represents LGI Homes in Acquisition and Re-Entitlement of Maravilla Estates
July 06, 2026 —
Lewis BrisboisTemecula Partner Samuel Alhadeff recently represented LGI Homes in its acquisition and re-entitlement of Maravilla Estates, a 169-lot active adult community located in San Jacinto, California.
The acquisition and re-entitlement of the project provide LGI Homes with the opportunity to deliver much-needed age-qualified housing in one of Riverside County's growing residential markets. The community includes a recorded final map and finished lots, as well as future development inventory and planned amenities, positioning the project for continued development and completion.
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Lewis Brisbois
SDNY Ruling Highlights Privilege Risks in Client Use of Generative AI
March 03, 2026 —
Christopher J. Olsen, Freddy X. Muñoz & Gary M. Stein - Peckar & Abramson, P.C.Artificial intelligence is quickly becoming a go‑to tool for aggregating and summarizing large volumes of data, formulating and testing arguments, and even sketching litigation strategies. But a recent ruling from the Southern District of New York serves as a stark warning: when clients turn to generative AI for legal strategy, they may be unknowingly turning privileged information over to a third party and then creating documents that may later be discoverable in litigation. In a closely watched bench decision, Judge Rakoff ruled that AI‑generated documents created by the target of a criminal investigation using Anthropic’s Claude were not privileged despite being generated with information learned from his attorneys to support his potential legal defense and then shared with his counsel. The decision highlights the unresolved and increasingly consequential intersection of AI, privilege, and discovery.
Facts
Bradley Heppner received a grand jury subpoena and hired attorneys at Quinn Emanuel to represent him. After learning he was a target of the investigation, but before he was arrested, he created 31 documents with Claude using information from his attorneys to outline a potential defense strategy. He was later arrested on charges of securities and wire fraud, and federal agents seized his electronic devices, which contained the 31 documents that had been provided to his attorneys. Mr. Heppner argued that the documents were created to prepare his potential defense strategy in anticipation of an indictment, but he conceded that he made the decision to prepare the reports on his own, i.e., not at the direction of counsel. He nevertheless claimed the documents were protected from disclosure by the attorney-client privilege and work product doctrine; the government moved to overrule the objections.
Reprinted courtesy of
Christopher J. Olsen, Peckar & Abramson, P.C.,
Freddy X. Muñoz, Peckar & Abramson, P.C. and
Gary M. Stein, Peckar & Abramson, P.C.
Mr. Olsen may be contacted at colsen@pecklaw.com
Mr. Muñoz may be contacted at fmunoz@pecklaw.com
Mr. Stein may be contacted at gstein@pecklaw.com
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