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Welcome
Welcome to our second issue of 2026 of The Site Report – our construction law insights e-newsletter.
Congratulations to Steven Hemric!
Steven Hemric has been recognized on the North Carolina Super Lawyers “Rising Stars” list for 2026! Steven practices in North Carolina, South Carolina, and Virginia with a focus on advising construction industry clients across all project stages, from bidding and contract negotiation through resolution of jobsite disputes and litigation. He also advises a variety of business clients from startups to Fortune-recognized businesses on supply chain, insurance coverage, and general transactional and litigation-related issues that affect their businesses. The objective of the Super Lawyers selection process is to create a credible, comprehensive and diverse listing of outstanding attorneys from more than 70 practice areas that can be used as a resource to assist attorneys and consumers in the search for legal counsel. No more than 2.5 percent of a state’s lawyers are named to the “Rising Stars” list. Click here to learn more.
Welcome to Annalee Blanks!
Please join us in welcoming Annalee Blanks to the firm as an Associate in our North Carolina office. Annalee focuses her practice on litigation, with particular emphasis on commercial and construction litigation. Click here to learn more.
DRI Construction Law Seminar, March 25-27, Nashville, TN
We hope you can join us at this top-tier event, where practical strategies for operating in this challenging and ever-evolving landscape will be discussed. In addition to being a sponsor, Stephanie Eaton is Vice Chair of the committee and will be in attendance along with Julian Neiser. Click here to learn more.
Thank you for reading!
Stephanie U. Eaton - Co-Chair, Construction Group and Editor, The Site Report
Julian E. Neiser - Co-Chair, Construction Group and Chair, Litigation Department
Jonathan A. Deasy - Assistant Editor, The Site Report
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“He added that AI's rise will require ‘trillions of dollars of infrastructure that needs to be built out’ and said that investment will be ‘sensible because all of these contexts have to be processed so that the models can generate the intelligence necessary to power the applications that sit on top.’"
Why this is important: At the World Economic Forum in Davos, Nvidia CEO Jensen Huang described the rapid expansion of AI and the accompanying construction of data centers, chip plants and other AI-related facilities as what he called the “largest infrastructure build-out in human history.” He told Fox Business that this enormous build-out is already driving up demand for skilled labor like plumbers, electricians, construction workers, steelworkers, and network technicians. He also noted that wages for these roles have increased substantially as a result. Huang said that many of these trades, traditionally not associated with technology sectors, are now offering six-figure salaries because of the surge in AI-related projects. --- Jason Wandling
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“The AI boom positions construction firms to capitalize on multibillion-dollar facility builds and level up their businesses with the technology.”
Why this is important: Data centers are a hot topic in the construction industry right now, and for good reason: new data center projects are popping up everywhere! As noted in this article, in 2025, a group of tech companies committed up to $500 billion to build data centers across the country, and Moody’s is projecting $3 trillion in global data center spending in the next five years. Data centers are here, and construction businesses have the opportunity to take advantage of not only the direct data center projects, but the “spin-off” projects like power plant expansions and construction of new nuclear, natural gas, and coal-fired power generation facilities to accommodate the increased electricity demands of large data centers.
This article also highlights another key takeaway for construction businesses from the data center boom, though. These data centers are largely driving and powering the expansion of AI, which has the potential to revolutionize the construction industry. From estimating to scheduling, to marketing to BIM and design, there are ample opportunities for construction businesses to leverage AI, and the early adopters that stay at the forefront of the technology will certainly rise to the top.
Spilman’s Construction Practice Group has the experience and is ready to assist companies across the construction industry in navigating the data center boom, any negative fallout if (as some fear) the “bubble bursts,” and in implementing AI-based tools to grow their businesses. --- Steven C. Hemric
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“Authorization was provided to New York-based Twisted Gun Solar for a 140-megawatt plant in Mingo and Logan counties.”
Why this is important: The West Virginia Public Service Commission has approved Twisted Gun Solar, a 140-megawatt plant in Mingo and Logan counties. The solar farm should begin construction in January 2027 and be operational in the fourth quarter of 2028. The 300,000 solar modules will tie into the Appalachian Power system at its Pigeon Creek substation. The company predicts 300 construction jobs for two years on a reclaimed surface mine and expects the completed solar farm to power 84,000 homes. The development is also forecasted to provide $4.5 million to the two counties in property taxes and other revenues. While other states build solar farms at a record pace, development in West Virginia continues to trail other states in the region. --- Mark E. Heath
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“The rapid expansion of artificial intelligence in construction and data centers is reshaping industry operations while spurring debates over electricity demand and consumer protection.”
Why this is important: According to this piece, artificial intelligence has forever changed the construction and energy sectors, two traditionally slow-evolving industries.
In the construction sector, the shift is no longer experimental: AI systems are now embedded into planning, monitoring, safety oversight, predictive scheduling, and even autonomous machinery operation. According to industry reporting, this evolution responds to chronic labor shortages and heightened safety liabilities. What’s more, AI anticipates issues and resolves problems before they actually exist. This raises questions about potential liability for AI-driven equipment malfunctions and the need for contracts and insurance frameworks that account for AI systems.
What’s more, AI’s rising power demands constitute a stress test on energy markets and utility regulation. In the Tennessee Valley, utility officials acknowledge that data center load has already become a material portion of industrial electricity demand and is projected to grow substantially. Utility leaders are publicly wrestling with how to meet service obligations and maintain low prices for regular consumers without sacrificing grid reliability.
Governors and legislators are participating actively in this debate. In Tennessee, the governor’s office signaled that attracting digital economy investment must not negatively affect ordinary power consumers, calling for regulatory frameworks that balance industrial growth with consumer interests. In Florida, lawmakers are similarly pursuing statutory guardrails.
Construction and energy lawyers must look closely at how AI will fit into traditional occupational safety and construction law and keep an eye on rapidly evolving utility regulation, as the very rules we operate under change dramatically and daily. --- Jason Wandling
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“Others in the construction world worry about finding an alternative that will fit their project’s needs when the current technology phases out.”
Why this is important: As noted in this article, “[t]he construction sector’s reliance on drone technology has grown from convenience to necessity . . ..” Drones are everywhere in the industry and seem here to stay, but the FCC’s new restrictions on specific drone manufacturers could, at least momentarily, upend the drone/UAV economics in the construction industry. The new Covered List addition could severely limit the short-term availability of affordable drones, and some companies are already stockpiling equipment or abandoning drone use until viable, affordable opportunities are available. This is a hot and developing issue that the Spilman Construction Practice Group is watching closely and with which the Construction Group stands ready to assist clients in navigating. --- Steven C. Hemric
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“But the biggest changes could be still to come from the relatively low-profile Nuclear Regulatory Commission (NRC), which is in charge of the vast majority of the nation’s reactors.”
Why this is important: The Trump administration’s Department of Energy (DOE) is scaling back National Environmental Policy Act (NEPA) requirements in order to accelerate development of nuclear energy projects across the United States. The DOE adopted a categorical exclusion for advanced and experimental nuclear reactors from the NEPA process. Under the new policy, developers of these reactors will not be required to prepare full Environmental Impact Statements (EIS) or Environmental Assessments (EA) before moving forward with construction and operation.
Supporters describe these measures as necessary to remove unnecessary and litigation-attracting bureaucratic obstacles and support innovation in advanced nuclear technologies, particularly as a low-carbon energy source. Supporters note that traditional NEPA reviews are often duplicative, slow, and subject to years-long legal challenges that make nuclear projects untenable. Meanwhile, environmental nongovernmental organizations are critical of the changes, claiming that exempting new nuclear projects from environmental review weakens transparency and accountability.
Lawyers representing industry or environmental interests should watch for potential Administrative Procedure Act challenges asserting that the exemptions are arbitrary or capricious, particularly if safety and environmental protections are materially reduced without a clear agency record. That “clear agency record” is what most attorneys who work in the field are concerned about, because most see little point in scoring easy victories that are certain to be overturned on challenge. --- Jason Wandling
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“A different survey last year found fewer than 40% of Gen Zers had an interest in the trades.”
Why this is important: Are you looking for more skilled labor for your upcoming construction projects? You may not need to look much farther than your local community college and trade schools. According to this article in Construction Dive, one survey conducted by a resume assistance company found that six out of 10 young adults (born between 1997-2012, and otherwise known as Gen Zers) are considering construction industry jobs, including HVAC, plumbing, electrical, manufacturing, and building maintenance jobs. The article suggests that, with the potential for AI to “take over” certain corporate jobs, a career in the skilled trades may provide more job security.
Community and vocational schools have and can continue to partner with local businesses to educate a new workforce to fill the estimated 150,000 construction workers and 80,000 electricians each year for the next several years, based on data from the U.S. Bureau of Labor Statistics. For example, Forsyth Tech Community College, based in Winston-Salem, North Carolina, offers courses in air conditioning, heating and refrigeration technology, electrical systems technology, facility maintenance technician, carpentry, plumbing, and technical and trade courses across multiple campuses. In 2022, the Business Roundtable started a new Corporate Incentives Roundtable of more than 150 companies that are collaborating on training needed for construction, manufacturing, building maintenance and energy solutions – via its Skilled Trades for America Initiative.
In fact, many national companies, such as The Home Depot, Schneider Electric, and Carrier Global Corp., have invested in training programs for construction-related jobs.
Bottom line: coordinate with community colleges and vocational schools that can connect your business with recent graduates to help fill your skilled labor needs. --- Stephanie U. Eaton
| | Featured Attorney Question & Answer | | |
Clifford F. Kinney, Jr.
Member; Chair, Chemical, Medical Monitoring, Product Liability Litigation, and Toxic Tort Litigation Practice Groups; Co-Chair, The Battle Group
Office 304.340.3844
ckinney@spilmanlaw.com
As a former American Arbitration Association neutral, we asked Member Cliff Kinney about his best advice when it comes to arbitration and construction disputes.
Q: What can parties do in advance of an arbitration dispute when one seems imminent?
A: Several things. One, carefully review the contract and be prepared to follow the requirements in it regarding a claim, or to assist counsel in following those requirements. Two, retain counsel early to assist in the arbitration process. Three, work with counsel and the business to retain and assemble the documentation that will be needed to pursue or defend against a claim in arbitration. Fourth, advise significant decision-makers and potential witnesses of what is about to occur. Fifth, continue to conduct business to reach the optimal result. Be careful not to put too much faith in recovering damages in arbitration when a more prudent course of action may be avoiding those damages altogether. In other words, mitigate your damages if and where possible -- the law expects that of parties.
Q: Once an arbitration is initiated, what then?
A: Unless you have a good reason for acting otherwise, do not be afraid to embrace the arbitration process and the benefits of it. Usually, a litigant can get the same recovery in arbitration as it could get in civil litigation. Arbitration is designed to be a quicker, cheaper process of dispute resolution. Consult with counsel about how you can optimize those aspects of arbitration, and resist letting the arbitration process turn into the same slow, expensive process it is designed to avoid civil litigation.
Q: What are some differences between arbitration and civil litigation that parties sometimes forget about?
A: A key difference is that an arbitration award is almost always final, and successful appeals are rare. Unless the arbitrator has an undisclosed conflict (which are typically more broadly defined than other legal conflicts) or is seriously compromised in some other way, the award will be upheld. Do not expect an appeal to succeed. Another key difference is that there is no jury. The decision-maker is presumably someone with experience in the construction industry, and that is a trade-off for not getting a jury. This should enable a quicker, more efficient hearing and a decision that is supported by the facts and law. Finally, although many arbitrators are lawyers, they do not have to be. If, for example, the arbitrator is a design engineer, communicate using the approach and terminology that they would be most comfortable with. Know your audience.
If you have any questions about arbitration, please give us a call.
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