Legal/Regs

Dotted Line: Progressive design-build takes hold in Missouri
The Missouri legislature passed Bill HR 2474 in May, which was signed into law by Governor Mike Kehoe on July 13, lowering the threshold for progressive design-build (PDB) from $7 million to $2.5 million and opening it to all state agencies. This model emphasizes early collaboration, but lawyers remind contractors to clarify key terms such as design responsibility, cost transparency, and performance guarantees.

House sends stopgap funding bill to White House with less transportation funding
美国众议院于9月1日通过一项持续决议,以370票对48票的结果将政府资金维持至12月11日。该法案若获总统签署,将为参众两院委员会争取更多时间处理地面交通立法和资金问题。此前参议院已于8月10日以90票对6票通过类似版本。法案未延续《基础设施投资与就业法》提供的预拨资金,可能导致公共交通投资减少20%、客运铁路减少83%,引发交通倡导组织的担忧。

25 states sue Trump over Section 301 forced-labor tariffs
25 U.S. states jointly sued the Trump administration, alleging that the forced labor tariffs imposed on 60 trading partners under Section 301 of the Trade Act of 1974 are 'arbitrary, capricious, and unlawful,' and requesting the court to invalidate the tariffs and refund collected duties.

Dotted Line: What a recent Massachusetts ruling means for prompt payments in construction
A June 26 ruling by the Massachusetts Supreme Judicial Court provides important legal guidance for prompt payment disputes in the construction industry. The case involved a $925,000 change order payment dispute between general contractor Columbia Construction and subcontractor J.C. Cannistraro, highlighting the necessity for contractors to fulfill their good faith certification obligations when refusing payment. Legal experts note that the ruling not only clarifies the application details of state law but also reminds construction firms nationwide to pay attention to differences and compliance risks in state prompt payment laws.

Canada tariffs put pressure on concrete, cement prices
U.S. President Trump announced a 50% tariff on multiple Canadian imports effective August 19, which could significantly impact prices of key construction materials such as cement and concrete. Legal experts warn that contractors need to immediately review existing contracts and consider incorporating price escalation clauses in bids to address soaring costs and uncertainty.

When “follow form” doesn’t follow form: How contractors can avoid hidden excess liability coverage gaps
Construction contracts typically require contractors to provide specific insurance coverage for upstream parties such as owners and general contractors, and this obligation often extends to umbrella or excess liability insurance. However, excess policies marked "follow form" do not automatically replicate the underlying policy terms, and their own wording differences can create coverage gaps, contractual breaches, and balance sheet risks. This article outlines seven common risk points, reminding contractors and brokers to verify policies layer by layer rather than assuming coverage automatically flows through the entire liability tower.

Deere & Co. Reaches Settlement with FTC Over Right-to-Repair Dispute
Deere & Co. has reached a settlement with the U.S. Federal Trade Commission (FTC) and five states over a joint lawsuit. The lawsuit alleged that Deere illegally restricted farmers and independent repair providers from repairing its agricultural equipment. Under the settlement, Deere agreed to provide farmers and independent repair shops with the same repair resources, including software, as authorized dealers over a 10-year period. The FTC stated it will oversee enforcement to reduce repair costs for farmers and promote the right to repair.

Environmental groups sue the U.S. Environmental Protection Agency, alleging it failed to respond to air permit challenges for U.S. Steel
A coalition of environmental groups has filed a lawsuit against the U.S. Environmental Protection Agency, alleging it failed to respond to challenges against the renewal of a clean air permit for U.S. Steel's Gary Works plant in Indiana. The plaintiffs request that the court order the EPA to rule on their petition submitted on July 3, 2025.

Federal judge permanently prohibits Transportation Department from freezing Hudson Tunnel project funds
Judge Jeannette Vargas of the U.S. District Court for the Southern District of New York issued a permanent injunction prohibiting the U.S. Department of Transportation (DOT) from withholding funds for the Hudson Tunnel project on the basis of the Disadvantaged Business Enterprise (DBE) program. The ruling overturned the funding freeze implemented by the Trump administration on September 30, 2025, and noted procedural violations by the DOT. The Gateway Development Commission, the project's oversight body, stated that the ruling removes legal uncertainty and allows construction to proceed.

Data center projects frequently encounter community resistance. How can contractors address this proactively?
Community opposition is becoming an emerging risk for data center contractors. At least 75 projects (valued at approximately $130 billion) were delayed or blocked for this reason in the first quarter of 2026. Legal experts suggest that contractors should clarify the project approval status before signing, include community protests in force majeure clauses, and maintain detailed records to address potential work stoppages.