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DIRECTORY AND CAPABILITIES

From Shale to Salt: Texas Supreme Court Applies Uniform Rule for Ownership of Subsurface Caverns

July 01, 2025 — Robert A. James, Ashleigh Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law Blog
In a closely watched opinion issued on May 16, 2025, the Texas Supreme Court in Myers-Woodward, LLC v. Undergrounds Services Markham, LLC, — S.W.3d —, No. 22-0878, 2025 WL 1415892 (Tex. May 16, 2025) resolved a long-uncertain issue of subsurface property rights in the context of salt dome mining. The Court held that, unless a deed provides otherwise, subsurface voids created by salt mining operations are owned by the surface estate holder, not the mineral interest holder. By rejecting a salt-specific rule, the Court harmonized ownership principles across subsurface formations, applying a uniform rule regardless of the type of mineral removed. The ruling is significant for developers of underground storage in Texas, including those involved in carbon capture, utilization and storage (CCUS), as it brings long-awaited clarity to the ownership of post-extraction cavern space. Reprinted courtesy of Robert A. James, Pillsbury, Ashleigh Myers, Pillsbury and Jillian Marullo, Pillsbury Mr. James may be contacted at rob.james@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Read the full story...

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The Potential (Second) Death of Project Labor Agreements

March 25, 2025 — W. Tyler Lloyd - The Dispute Resolver
The back-and-forth over project labor agreements (“PLAs”) continues during the second Trump Administration. These pre-hire collective bargaining agreements generally set the terms and conditions of employment for a specific project and have been the subject of several executive orders dating back to the early 1990s. The executive orders have varied between a complete prohibition of the PLA requirement by President George H.W. Bush in 1992 to a mandate that agencies include PLAs with labor organizations in all government construction contracts exceeding $35 million by President Biden in 2022. Although President Trump has issued several executive orders since taking office in January, he has not specifically addressed the continued tug-of-war over PLAs. However, federal agencies and courts have redrawn the lines for PLAs, leaving the construction industry waiting for further guidance. The first domino fell when the United States Court of Federal Claims issued a ruling in MVL USA, Inc. et al. v. United States, 174 Fed. Cl. 437 (U.S. Ct. Cl. 2025). Here, 12 large construction contractors filed pre-bid award protests, challenging federal agencies’ authority to mandate that prospective bidders enter PLAs to be considered eligible for award of federal construction projects exceeding $35 million, allegedly in violation of the Competition in Contracting Act (“CICA”), as based on President Biden’s Executive Order and Federal Acquisition Regulation (“FAR”) implementing the Executive Order. In its decision, the court struck down President Biden’s executive order. The Federal Claims Court held that the PLA mandate violated the CICA’s full and open competition requirement. It further held that the mandate violated the CICA because it allows agencies to reduce competition to PLA-contracts, a limitation that has no relation to the substance of the solicitation or performance at issue. The court also that that the agencies’ decisions to proceed with PLAs as a mandate based solely on a President’s policy were “arbitrary and capricious.” Since this decision was rendered in late January, some federal agencies have begun adopting policies consistent with the court’s rationale. Read the full story...
Reprinted courtesy of W. Tyler Lloyd, Stites and Harbison, PLLC
Mr. Lloyd may be contacted at tlloyd@stites.com

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Behavioral Hiring Builds a Stronger Construction Workforce

June 02, 2025 — Matt Poepsel - Construction Executive
Like many industries, construction is experiencing a major labor shortage. Associated Builders and Contractors projects the industry will need to bring in 439,000 net new workers in 2025 just to keep pace with demand. That’s not a typo—nearly half a million new workers in a single year. This might seem like a golden opportunity for newcomers to the field, but it raises some major concerns for construction executives. Missing this hiring target threatens the entire industry: projects will face significant delays, costs will surge as companies compete for limited workers and some projects may be abandoned altogether. Consider the fact that 20% of construction workers are nearing retirement age, and these challenges become even more daunting. Reprinted courtesy of Matt Poepsel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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The Moment of Truth

February 12, 2025 — Aarni Heiskanen - AEC Business
What is the moment of truth of a construction project? It is when an on-site worker enters the jobsite to start doing whatever they plan to do. It is the culmination of a long process that started years ago and the start of a process that will end decades from now. That idea came to mind when I listened to a presentation by Otto Alhava, the CTO of Fira, a Finnish general contractor. He discussed how construction workers are typically not provided the means to do their work optimally. That’s why HVACE installation teams, for example, spend less than 20% of their time on-site on actual installation. The product and material data challenges A critical component that Otto Alhava and other Finnish construction innovators talk about regarding productivity is product and material data flow throughout the design and construction processes. Today, the flow slows down or completely dries up several times over the project life cycle. A good example of this is how we use BIM. 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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The Federal Freeze Playbook: Key Steps for Government Contractors Amid a Potential Federal Funding Freeze

February 19, 2025 — Abby Bello Salinas & Michael A. Branca - Peckar & Abramson, P.C.
This Alert will provide an overview of the current status of the Federal Funding Freeze and five key steps that can be taken in preparation for what may come. Current Status of the Federal Freeze The memorandum issued by the Office of Management and Budget (“OMB”) on January 27 required all federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the [President’s] executive orders,” and to submit information regarding their federal financial assistance programs to OMB before February 10. Very quickly, the memorandum was enjoined by a federal court, rescinded, and then put back in flux by a tweet from the President’s press secretary claiming that the rescission did not stop the freeze. As expected, a legal battle is underway, with a judge extending the injunction on February 3 despite the Trump Justice Department’s arguments that the federal court had no authority to intervene after OMB rescinded its January 27 memorandum. Reprinted courtesy of Abby Bello Salinas, Peckar & Abramson, P.C. and Michael A. Branca, Peckar & Abramson, P.C. Ms. Salinas may be contacted at asalinas@pecklaw.com Mr. Branca may be contacted at mbranca@pecklaw.com Read the full story...

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Congratulations to Partners Bryan Stofferahn and Jason DiGioia on Successfully Securing Nearly 12 Million Dollars in a Complex Construction Defect Case!

May 23, 2025 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
We are proud to announce a significant legal victory for BWB&O’s contractor client in a complex and hard-fought case involving alleged construction defects to the flooring system at a major hospital in the Bay Area. BWB&O partners Bryan Stofferahn and Jason DiGioia successfully secured nearly $12 million in recovery from multiple cross-defendants, including the architect, product manufacturers, and product suppliers of the materials installed by BWB&O’s client. The case arose from the catastrophic failure of a never-before-installed flooring system, which resulted in severe cracking and necessitated the replacement of the entire flooring system. BWB&O’s contractor client pursued recovery after settling with the hospital owner, navigating multiple legal and insurance coverage challenges along the way. Throughout the process, Bryan and Jason worked tirelessly, overcoming significant coverage issues and successfully triggering multiple insurance policies of the cross-defendants. After lengthy expert depositions, the case was globally settled. Bryan and Jason secured an 8-figure settlement, but more importantly, they also preserved the business operations of BWB&O’s client. Read the full story...
Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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Green Builder Media Releases 2025 Sustainable Brand Index Results

June 02, 2025 — Green Builder Media
Lake City, Colo., May 19, 2025 (GLOBE NEWSWIRE) -- Green Builder Media is proud to announce the results of the 2025 Sustainable Brand Index, an annual benchmark that identifies the most recognized, trusted, and sustainability-driven companies in the residential construction sector. Now in its 11th year, the Sustainable Brand Index provides critical insights for builders, architects, and specifiers looking to align their product choices with performance and sustainability goals. It also offers a roadmap for manufacturers aiming to improve market perception and trust. The Index evaluates brand performance using a unique methodology that blends three weighted factors:

1. Brand Recognition – Frequency of positive mentions by industry professionals and consumers.
2. Perceived Sustainability – How readers rate a company's environmental performance.
3. Public Sentiment – How favorably a brand is viewed by the public.

To explore the full 2025 Sustainable Brand Index, visit: https://www.greenbuildermedia.com/blog/2025-sustainable-brand-index About Green Builder Media Green Builder Media is North America's leading media company focused on green building and sustainable living content. With a comprehensive suite of content marketing, digital, social, and print media options, high-profile demonstration projects, market intelligence, data services, and live events, Green Builder Media offers a blend of visionary and practical information covering a broad spectrum of topics, including decarbonization, electrification, smart home technologies, energy efficiency, intelligent water, indoor air quality, resilient housing, renewables, and clean transportation.

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Emerging Issues in Construction CGL Insurance Part 1: Continuing or Progressive Loss Exclusions

March 11, 2025 — Eric M. Clarkson - Saxe Doernberger & Vita, P.C.
The risks and losses associated with construction operations and property development push many insurance concepts to their limits. As a result, the construction industry has long been at the forefront of many complex insurance coverage issues and both drives but also depends on market standards to assess and adequately address risks. SDV closely monitors insurance markets for changes that impact contractors and developers, particularly through our Subcontractor Insurance Review Program (“SIRP”) services.[1] This also allows SDV to spot emerging issues in the way markets address insurance concepts critical to the construction industry. One area the markets have been moving away from policyholder expectations is Commercial General Liability (“CGL”) coverage for continuing or progressive injury or damage. CGL policies generally cover defense and indemnity for third-party claims because of “bodily injury” or “property damage.” The primary CGL requirements are that such injury or damage must be caused by an “occurrence” (i.e., an accident) and that the injury or damage must occur during the policy period. Critically, CGL policies do not require the “occurrence” to take place during the policy period for coverage to be triggered. This makes sense as there are many circumstances where injury or damage might not manifest until after the policy period in which the “occurrence” or accident transpired. Read the full story...
Reprinted courtesy of Eric M. Clarkson, Saxe Doernberger & Vita, P.C.
Mr. Clarkson may be contacted at EClarkson@sdvlaw.com

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