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Real Estate & Construction News Roundup (3/11/25) – An AI Inflection Point for Hotels, Investor Pivot in Build-to-Rent and Looming Legislation for Single-Family Investors

March 24, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, lodging demand for World Cup brings growth, commercial property management firms use of AI becomes firmer, construction industry shows slow start to the year, and more!

• The hotel industry has reached an inflection point, where owners and developers are embracing artificial intelligence more, but are also increasingly in need of greater guidance on how to convert early adoption into long-term returns. (Jenna Graber, Hotel Dive)
• While the upcoming 2026 FIFA World Cup is expected to bring notable RevPAR gains to U.S. host cities, the overall domestic impact will be negligible. (Noor Adatia, Hotel Dive)
• Company leaders’ often vague predictions of how AI will be adopted are giving way to more fully formed strategies in the commercial real estate industry. (Joe Burns, Facilities Dive)

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

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Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions

May 12, 2026 — David Adelstein - Florida Construction Legal Updates
Contract 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.

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

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Construction Robotics Works Where Variation Ends

August 11, 2026 — Aarni Heiskanen - AEC Business
BuiltWorlds published its 2026 Robotics Top 50 this summer, and the list is genuinely wide. Fifty solutions across nine categories, from 3D printing and prefabricated component manufacturing to earthmoving, demolition, material transport, layout, installation, inspection, and drilling. The honorees come from sixteen countries. It looks like robotics has finally spread across the whole project lifecycle. However, having vendors in nine categories does not mean that contractors are robotizing their work en masse. Zacua Ventures, in its 2026 construction robotics report, estimates that on-site robotics accounted for less than 0.03% of global construction spending in 2025. Zacua says: “That is not a failed market. It is a market at the beginning of an adoption S-curve”, while warning that its estimates rest on private vendor data and may be high if vendors overstate how widely their machines are deployed. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Arizona Court of Appeals Clarifies Homeowners Association Open Meeting Requirements

June 29, 2026 — Jill Casson Owen, Benjamin J. Hawkins & Stephen Wright - Snell & Wilmer
A Z N H Revocable Trust v. Sunland Springs Village Homeowners Association, No. 1 CA-CV 25-0424 (Ariz. Ct. App. Apr. 28, 2026) OVERVIEW The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804. The decision reinforces the legislative policy favoring transparency in association governance, bringing association meeting requirements more in line with the open meeting standards applicable to public bodies under A.R.S. § 38-431 et seq. (Arizona’s Open Meeting Law). KEY HOLDINGS 1. All Voting and Formal Actions Must Occur in Open Meetings The Court affirmed that association boards cannot vote or take formal action during closed (executive) sessions. Under A.R.S. § 33-1804(A), associations may close portions of meetings only for “consideration” of certain enumerated topics, such as legal advice, pending litigation, or personal/financial information about individual members. The Court interpreted “consideration” to mean discussion and deliberation, not voting. The Court noted that dictionaries define “consider” as “spending time thinking about a possibility” and “formulating an opinion,” which are processes that precede formal action. This interpretation mirrors how Arizona’s Open Meeting Law (A.R.S. § 38-431.03(D)) prohibits public bodies from voting in executive session. Reprinted courtesy of Jill Casson Owen, Snell & Wilmer, Benjamin J. Hawkins, Snell & Wilmer and Stephen Wright, Snell & Wilmer Ms. Owen may be contacted at jowen@swlaw.com Mr. Hawkins may be contacted at bhawkins@swlaw.com Mr. Wright may be contacted at swright@swlaw.com Read the full story...

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IRMI Expert Commentary: NY Highest Court Confronts Downstream Risk Transfer for Subcontractor Bodily Injury Claims

March 17, 2026 — Gregory D. Podolak & Alexander G. Hopkins - Saxe Doernberger & Vita, P.C.
Originally published on IRMI.com, copyright 2026 International Risk Management Institute, Inc. Subcontractor employee bodily injury claims (so-called action over claims) are a staple of construction risk management in the Empire State—so much so that the phrase “labor law” instinctively invites a shudder among the most experienced general contractors. The savvy among them intensely monitor case law developments and the evolution of the insurance market to ensure a cutting-edge, meticulously developed downstream risk transfer plan. And when guidance arrives from an appellate-level court, it’s a moment to take note. This is one of those moments. In late 2025, New York’s highest court—the NY Court of Appeals—had the rare opportunity to examine an all-too-routine bodily injury fact pattern and took the opportunity to closely examine the scope of contractual indemnity and its interplay with additional insured coverage in Dibrino v. Rockefeller Center N., Inc., 2025 N.Y. Slip Op. 07077, 2025 WL 3670593 (Ct. App. Dec. 18, 2025). Reprinted courtesy of Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and Alexander G. Hopkins, Saxe Doernberger & Vita, P.C. Mr. Podolak may be contacted at GPodolak@sdvlaw.com Mr. Hopkins may be contacted at AHopkins@sdvlaw.com Read the full story...

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The Who/What/How of Sealing Plans for Architects and Engineers (Law Note)

March 03, 2026 — Melissa Dewey Brumback - Construction Law in North Carolina
The proper use of professional seals in North Carolina is critical. Failure to follow the prescribed requirements can subject you or your Firm to a Board sanction. Did you know that the NC Board of Architecture and the NC Engineering Board have jointly prepared a fairly straightforward document that can tell you exactly what you need to know about sealing of plans? That document, the “Seal Brochure” (pdf) is available for download. Every state’s regulations are a little different (thank you Federalism!) so it is worth reviewing with your staff at regular intervals, especially if you do work across state lines. Read the full story...
Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett PLLC
Ms. Brumback may be contacted at mbrumback@rl-law.com

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Modular Construction’s Big Boom: New Risks Outpacing Standard Contracts in Industrial Projects

March 24, 2026 — Chad Theriot & Jack Mayo - Construction Executive
Modular construction is revolutionizing the construction industry, tackling labor shortages, sustainability goals and supply-chain challenges, with the global market for modular and prefabricated construction projected to reach over $200 billion by 2030. While residential builders have embraced modular’s speed and affordability, the greatest risks—and opportunities—are emerging in the industrial sector, where project scale and complexity demand new legal strategies. In 2023, Chad Theriot explored industrial and infrastructure applications of modular construction, addressing risks like offsite fabrication and integration complexities in his article, “The Rise of Modular Construction—Impacts for Consideration.” Since that time, modular construction has continued to experience significant advancements and has been increasingly adopted by contractors across a broad spectrum of industrial and commercial projects. As modular construction continues to reshape the industrial landscape, contractors and owners alike must be mindful of the legal implications associated with its use, specifically as it relates to liability and risk allocation, regulatory compliance, quality control and upstream factors such as transportation and intellectual property concerns. Reprinted courtesy of Chad Theriot and Jack Mayo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Court to General Contractor: Too Late to Reclaim $600K Sub Overpayment

March 03, 2026 — Richard Korman - Engineering News-Record
Massachusetts contractors and their attorneys are once again testing the limits of the state's 15-year-old prompt-pay law, with concerned prime contractors asking an appeals court to overturn a lower court ruling that they believe gives subcontractors a powerful upper hand in payment disputes. Read the full story...
Reprinted courtesy of Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com

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