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Real Estate & Construction News Roundup (8/5/26) – Data Centers Reshape Hotel Demand, AI Changes Construction Workflows and Global Tariffs Raise CRE Construction Costs

August 16, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, AI creates new real estate play for VCs, Wall Street sells more rental homes, builders capitalize on flood of water projects and more!

• Data center construction has the potential to be a significant opportunity for extended stay hotels in the near and long term, provided sustainable demand patterns exist within a given market. (Jenna Graber, Hotel Dive)
• Artificial intelligence doesn’t represent an “extinction event” for AEC firms, but it will fundamentally change the way construction pros streamline certain tasks. (Matthew Thibault, Construction Dive)
• With the 21st Century ROAD to Housing now law, there are a number of outstanding questions about implementation and compliance for multifamily pros. (Julie Strupp, Multifamily Dive)

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

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Saxe Doernberger & Vita, P.C. Expands with New Office in Foxborough, Massachusetts

June 08, 2026 — Saxe Doernberger & Vita, P.C.
Foxborough, MA — April 1st, 2026— Saxe Doernberger & Vita, P.C. (SDV), a national law firm focused exclusively on representing policyholders in insurance coverage disputes, is pleased to announce the opening of its new office in Foxborough, Massachusetts. The expansion marks another milestone in the firm’s continued growth and deepens SDV’s ability to serve clients across the region. The new location strengthens SDV’s presence in Massachusetts and expands the firm’s capacity to support both existing and anticipated client needs in an increasingly complex insurance landscape. Read the full story...
Reprinted courtesy of Saxe Doernberger & Vita, P.C.

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Surety Requiring Collateral Security Under General Agreement of Indemnity

September 08, 2026 — David Adelstein - Florida Construction Legal Updates
In order to procure bonds (payment and performance bonds), you need to sign a General Agreement of Indemnity (referred to as the “GAI”) with the surety (bonding company). It does not matter the surety issuing the bonds, the terms and conditions in the General Agreement of Indemnity are largely consistent. These terms and conditions are one-sided written in favor of the surety. This is because bonds are not insurance. When a surety issues such bonds, it is doing so under the premise that it will get reimbursed every penny that it incurs relative to its exposure- whether incurred in attorney’s fees, consulting costs, or remediating a default or claim under the applicable bond. The General Agreement of Indemnity is one of the most powerful contracts in construction and is a contract that is not to be taken lightly. It provides the surety numerous rights in the event of a claim. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Voluntary Dismissal of an Indemnity Claim Does Not Make the Subcontractor a “Prevailing Party,” Washington Court of Appeals Holds

September 21, 2026 — Margarita Kutsin - Ahlers Cressman & Sleight PLLC
In King County v. Walsh Construction Company II, LLC, No. 86503-0-I (Wash. Ct. App. Aug. 4, 2025), an unpublished decision from Division I of the Washington Court of Appeals, the Court affirmed the denial of a subcontractor’s request for prevailing-party attorney fees under an indemnity clause after the general contractor voluntarily dismissed its indemnity claims. Because the indemnity claim was no longer live and no determination of fault had occurred, the Court held that the trial court did not err in denying the request. ACS represented Walsh, the general contractor, in securing the denial of the fee request at the trial court that the Court of Appeals affirmed. A Pass-Through Indemnity Claim That Ended Before Fault Was Decided The dispute arose out of a public works contract under which King County hired Walsh Construction Company II, LLC (“Walsh”) to construct and install a conveyance pipeline. After the pipeline broke, King County sued Walsh for breach of contract and warranty, expressly identifying both Walsh and its subcontractor, Mears Group Inc., (“Mears”) as responsible. Walsh tendered defense and indemnity to Mears under the subcontract. Read the full story...
Reprinted courtesy of Margarita Kutsin, Ahlers Cressman & Sleight PLLC
Ms. Kutsin may be contacted at margarita.kutsin@acslawyers.com

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It’s More Than a Feeling: Proving Construction Damages and When You Should Hire an Expert to Help Do It

July 27, 2026 — Bradley E. Sands & Katie McCracken - ConsensusDocs
When you win a bid, you might be singing that everything is going your way. Then something goes wrong. The owner hands you defective plans, sits on RFI responses or other critical information, or otherwise upends the work. The costs pile up through no fault of your own. You feel wronged, and you want to be made whole. But a feeling that you got burned is not enough. To recover, that feeling has to become something the law recognizes as damages. So, what are damages, and how do you prove them? At bottom, contract damages are the money that puts the non-breaching party (i.e., the party that doesn’t breach the contract) in the position it would have occupied had the contract been performed. Reprinted courtesy of Bradley E. Sands, Jones Walker LLP and Katie McCracken, Summer Associate, University of Georgia School of Law Read the full story...
Mr. Sands may be contacted at bsands@joneswalker.com

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The Firm Turns 16!

July 20, 2026 — Christopher G. Hill - Construction Law Musings
I have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks the 16th anniversary of my first day as a solo practitioner of construction law at The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 16 years without the support of the best wife and family that any construction lawyer could want. Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) has graduated from N. C. State University with a fisheries and wildlife biology degree and is currently in Casper, Wyoming working for Wyoming Game & Fish, my second oldest is an assistant director of admissions at Appalachian State University in Boone, NC, and has celebrated his second wedding anniversary, and my oldest has celebrated her fifth marriage anniversary. Our home in Captiva, Florida continues its recovery from from Hurricane Ian and subsequent hurricanes. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill

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Bona Fide Dispute Defeats Violation of Prompt Payment Act

June 15, 2026 — David Adelstein - Florida Construction Legal Updates
Most, 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. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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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 Brisbois
The 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 Read the full story...

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