MC DONALD TENNESSEE CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

Labor Shortages in Construction: Managing Legal and Operational Risks

April 14, 2026 — Meghan Douris - Construction Executive
Labor shortages in the construction industry have become more than a scheduling headache—they are a legal and financial risk multiplier. As contractors scramble to meet deadlines with limited manpower, shortcuts in compliance, safety and subcontractor oversight become more likely. These gaps can expose companies to regulatory penalties, contractual disputes and reputational damage. Understanding how workforce constraints intersect with labor laws and contractual obligations is critical to mitigating the risks and navigating these challenges without compromising compliance or project integrity. The construction industry has faced persistent workforce challenges for years, but recent trends have intensified the problem. Factors such as an aging workforce, reduced immigration and post-pandemic recovery pressures have left contractors struggling to find skilled labor. According to Associated Builders and Contractors, the construction workforce shortage surpassed half a million workers in 2024; in the same year, Associated General Contractors reported 88% of construction companies had difficulty finding qualified workers. Reprinted courtesy of Meghan Douris, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Surety Liability Is Coextensive with Its Bond Principal

April 14, 2026 — David Adelstein - Florida Construction Legal Updates
A recent Miller act payment bond case, U.S. f/u/b/o Whitetail General Constructors v. Northcon, Inc., 2026 WL 46671 (D.Mont. 2026), contains a short noteworthy discussion as to a surety’s liability being coextensive with that of its bond principal. If you are bonded, or you are pursuing a bond, you need to appreciate this, which is why this is a noteworthy discussion:

A “surety’s liability on a Miller Act bond must be at least coextensive with the obligations imposed by the Act if the bond is to have its intended effect.” “Therefore, ‘the liability of a surety and its principal on a Miller Act payment bond is coextensive with the contractual liability of the principal only to the extent that it is consistent with the rights and obligations created under the Miller Act.’” In other words, “[w]here a subcontract’s terms are consistent with the Miller Act’s provisions, the surety’s liability on the Miller Act bond is coextensive with the contractual liability of its princip[al].”

“The liability of a surety under the Miller Act is controlled by federal law, rather than state contract law[.]” The court may, however, “look to state law when interpreting contractual provisions” in a Miller Act case.

“[T]he measure of recovery under the Miller Act is generally determined by the terms of the subcontract [or underlying contract].”

Northcon, supra, at *4-5 (internal citations omitted).

Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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2026 Top Business Risks for Construction and Engineering Companies

May 26, 2026 — Darren Tasker - Construction Executive
The 2026 Allianz Risk Barometer revealed some surprising findings for construction and engineering businesses. Now in its fifteenth year, this annual business risk ranking by corporate insurer Allianz Commercial incorporates the views of 3,338 global risk management professionals on the main perils on their radar for the year. Survey respondents included construction and engineering risk experts who identified the threats keeping them up at night. Here is how they ranked the top industry risks for 2026: Natural Catastrophes Natural catastrophe risk retains the top spot, with 38% of construction and engineering respondents citing this risk as their leading concern for 2026. From the insurance perspective, economic and insured losses remained high, albeit lower than the 10-year average. The evolving nature of natural catastrophes continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural catastrophes are set to reach $107 billion for 2025, according to Swiss Re—the sixth year in a row they have exceeded $100 billion, while economic losses are well in excess of $200 billion. Reprinted courtesy of Darren Tasker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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A Customized Approach to Data Center Construction

June 29, 2026 — James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law Blog
Data center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions. Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements. Reprinted courtesy of James P. Bobotek, Pillsbury, Arielle L. Murphy, Pillsbury and Robert A. James, Pillsbury Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com Mr. James may be contacted at rob.james@pillsburylaw.com Read the full story...

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Contractor Dispute Resolution Framework and Prevention

July 06, 2026 — Construction Executive
WHAT DEFINES A CONTRACTOR DISPUTE RESOLUTION FRAMEWORK A contractor dispute resolution framework is a structured system of contractual terms, governance processes and escalation pathways designed to prevent, manage and resolve conflicts between contracting parties with minimal disruption to cost, schedule and performance. The framework operates as both a preventive control and a corrective mechanism. Preventive elements establish clarity in scope, expectations and accountability before work begins. Corrective elements define how disagreements are identified, documented, escalated and resolved once they arise. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Connecticut Expands Construction Wage-Theft Liability and Prevailing Wage Recordkeeping Requirements

June 29, 2026 — Anand Gupta & Guest Contributor - Construction Law Zone
This post was co-authored by Labor + Employment group lawyer Christopher Costain, Hayden Eckblom (Summer Intern), and Pasqualina Fox-Mina (Summer Associate). Hayden and Pasqualina are not admitted to practice law. On May 11, 2026, Connecticut Governor Ned Lamont signed into law Public Act 26-12, a wide-ranging bill centered around employee rights. Our colleagues in Robinson+Cole’s Labor, Employment, Benefits + Immigration group recently published a legal update summarizing the key components of Public Act 26-12. Here, we focus on the Wage Theft and Prevailing Wage concepts in the bill that directly relate to the construction industry. Wage Theft With exceptions for public works and small residential projects, general contractors will be jointly and severally liable for any unpaid wages owed to an employee of a subcontractor of any tier on private construction projects, beginning with contracts entered into on or after January 1, 2027. As we know, there is a separate regime for public works projects involving payment bonds. Read the full story...
Reprinted courtesy of Anand Gupta, Robinson & Cole LLP
Mr. Gupta may be contacted at agupta@rc.com

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Arbitration Provision Must Be Incorporated into a Bond for Surety to Elect Arbitration

March 03, 2026 — David Adelstein - Florida Construction Legal Updates
“Sureties cannot exercise unilateral election rights that are reserved for the principal of the underlying contract.” Anderson Service Corp. v. Old Republic Surety Company, 2026 WL 61436, *2 (Fla. 4th DCA 2026). This was the holding in a recent case dealing with arbitration. In this case, a subcontractor entered into a contract with a contractor that gave the contractor the right to elect arbitration in Pennsylvania. A dispute arose and the subcontractor recorded a construction lien. The contractor transferred the lien to a lien transfer bond under Florida law. (The contractor was the principal of the lien transfer bond.) The lien transfer bond surety then moved to compel the subcontractor to arbitration based on the underlying subcontract. The trial court agreed to compel arbitration but this was reversed on appeal. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Modular Construction’s Hidden Risk: Where Things Go Wrong Between the Factory and the Field

June 15, 2026 — Jack Mayo - ConsensusDocs
Introduction As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them. The appeal is straightforward: faster timelines, controlled fabrication environments, and reduced on-site labor demands. But the risks that accompany these benefits are often less clear—and, in many cases, poorly defined. For example, what happens when a prefabricated component is delayed past its installation window? Who is responsible for a defect discovered inside a sealed, installed module? What happens to warranty obligations when a prefabricated component must be modified on site? Read the full story...
Reprinted courtesy of Jack Mayo, Jones Walker LLP
Mr. Mayo may be contacted at jmayo@joneswalker.com

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