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Welcome
Welcome to our fourth issue of 2026 of The Site Report – our construction law insights e-newsletter.
WV Manufacturers Association's WVMEG Summit, Charleston, WV, May 4-5
This regional event brings together manufacturing and energy leaders, state and local officials, economic development professionals, and financial industry leaders from West Virginia, Ohio, and Pennsylvania. Summit attendees will explore the latest intersections of manufacturing and energy — from boosting growth and employment to attracting manufacturing development through feedstocks created by natural gas and rare earth extraction. Click here to learn more.
Spilman SuperVision Labor & Employment Symposium, Charleston, WV, June 18
2026 Workplace Masterclass: L&E Compliance, AI, & the Brave New Employment Landscape: A fast-moving, high-impact seminar for employers navigating the modern workplace. Join Spilman attorneys for our full-day SuperVision Symposium, designed to inspire your confidence in navigating complex employment decisions! This complimentary symposium is tailored for business owners, C-suite executives, HR professionals, and anyone who manages employees. Dive into a day of valuable insights on employment topics such as AI, investigations, litigation, immigration, labor law, accommodations, and much more. Spend the day with us and leave armed with strategies and solutions to tackle the ever-changing world of labor and employment law! Click here to learn more and register.
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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“The June 2026 trial will determine if the striking ship’s owner and manager can limit liability under the 1851 Limitation of Liability Act.”
Why this is important: The modern-day applicability of an 1851 maritime law will be tested at trial this June as the owner and manager of the Dali, the cargo ship that crashed into the Key Bridge in Baltimore, Maryland, in March 2024, seek to cap the damages they could be liable for in connection with the incident.
The 1851 Limitation of Liability Act was passed to incentivize maritime shipping at a time when it was riskier. The law allows potentially liable parties to cap damages at the value of the vessel and pending freight, as long as they can show that they did not know, or should not have known, about the problem that caused the loss. In the case of the Dali, that figure is about $43.6 million—a fraction of the roughly $5 billion the State of Maryland, which is only one of the claimants, could be seeking to compensate for the cost of a replacement bridge alone.
Along with the state’s claims, claims brought by the families of the six people who died in the crash, as well as local businesses, are also still pending and will be heard in federal court in Baltimore in June. --- Jamie L. Martines
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“The dollar value of deferred capital projects grew by 8% last year, according to the latest state of higher ed facilities report from Gordian.”
Why this is important: A growing backlog of deferred maintenance is reshaping capital planning and risk exposure across U.S. higher education. A 2026 report from Gordian estimates that delayed campus renovation and renewal needs have reached record levels, climbing to roughly $156 per gross square foot—nearly double levels from the late 2000s.
The trend reflects sustained underinvestment, with institutions funding only about three-quarters of the capital required to prevent further deterioration. As a result, deferred maintenance is compounding into a significant long-term liability, likely increasing future borrowing needs and capital costs.
Operational pressures are intensifying the issue. Colleges and universities face tightening budgets, staffing constraints, and demographic headwinds, while shifting away from new construction toward maintaining and “right-sizing” existing facilities.
For legal and construction professionals, the expanding backlog signals increased demand for renovation work, greater reliance on financing mechanisms, and more complex procurement and risk allocation challenges. Overall, institutions are pivoting from expansion to asset management as the central focus of campus infrastructure strategy. --- Jason Wandling
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“The commission assesses facilities, funding needs, and financing options.”
Why this is important: Virginia has enacted legislation making its Commission on School Construction and Modernization a permanent body, signaling a shift toward long-term, statewide planning for public school infrastructure. Signed into law by Governor Abigail Spanberger on April 7, 2026, the measure received unanimous support in both legislative chambers.
The commission, initially created by executive order earlier in 2026 and slated to expire, is tasked with evaluating school facilities across the Commonwealth, identifying funding needs, and recommending financing strategies and best practices for local school divisions.
For the construction industry, the law’s most significant impact may lie in its push for standardization. The commission will develop uniform design guidelines and procurement practices, as well as identify cost-saving measures. These efforts are expected to create a more predictable bidding environment and improve project delivery timelines—potentially reducing risk and increasing efficiency for contractors and public owners alike. Spilman’s Virginia attorneys can help builders and contractors alike navigate this new era for school building. --- Jason Wandling
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“Those changes in costs are significant for projects as large as construction, meaning school systems are now paying tens of millions of dollars more toward every new school and replacement school than just a few years ago.”
Why this is important: Rising construction costs are significantly straining school financing and capital planning in North Carolina, particularly in the Wake County Public School System. New school projects now exceed $500 per square foot, up sharply from roughly $300 in 2020, with building-only costs often surpassing $300–$400 per square foot.
Statewide, construction costs have increased by roughly 40 to 50 percent since 2021, forcing school districts to pursue larger capital funding measures. In Wake County, officials are advancing a $680 million bond referendum despite identifying substantially greater facility needs, highlighting the growing gap between available funding and project demand.
These pressures extend beyond capital budgets. Districts are also contending with rising operating expenses, flat or declining enrollment, and reduced federal support. Because funding is closely tied to student enrollment, stagnant growth limits revenue even as fixed costs—particularly for facilities—continue to rise.
For lawyers and construction professionals, the trend signals increased reliance on public financing, expanded taxpayer exposure, and more complex procurement and contracting environments. Overall, escalating costs are forcing school systems to rethink long-term infrastructure planning and financial sustainability. --- Jason Wandling
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“Schools become more resilient when the smaller physical details receive the same scrutiny as the larger systems during construction.”
Why this is important: Both when building new facilities and updating existing campuses, intentionality in design is key not only in traditional areas like structural elements, classroom layout, mechanical systems, building aesthetics, etc., but also in smaller physical details that impact campus security systems and concerns. This article does a great job of highlighting a few of those often-overlooked design elements that can have big impacts on campus safety and emergency responses. Bringing intentionality to addressing security/safety in campus and building design and layout is important not only because it improves the ability of the campus to protect the faculty, staff, and students that use the facilities every day, but also because failing to take safety/security into account can sometimes open an institution (and its design professional) up to liability in the event tragedy does strike.
Spilman’s Education and Construction Practice Groups work together to help educational institutions, contractors, and design professionals alike navigate the importance and impacts of safety in design when they are planning new projects, actively managing ongoing projects, and responding to unfortunate circumstances. --- Steven C. Hemric
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“The building was assembled in a single night after the last train departed and was ready before morning train operations resumed.”
Why this is important: Construction company Serendix and West Japan Railway Company (JR West) worked together to construct Japan’s first 3D-printed railway station building overnight, demonstrating how robotics and 3D-printing could significantly reduce construction time and disruption to infrastructure operations.
Traditional railway construction usually takes several months, requiring extensive on-site labor and planning. Automation technology from ABB Ltd enabled high-precision printing of structural components off-site, reducing construction errors and improving overall efficiency. The components were then assembled quickly on-site using ABB’s robot. The building was assembled in one single night after the last train departed, and it was ready before morning train operations resumed.
This achievement highlights the benefits of using robotics in construction – they improve efficiency, reduce waste and shorten project times. Automation also allows for the completion of projects in locations where traditional building methods would be fraught with difficulties and delays. It also highlights how robotics and automation are expanding beyond manufacturing into sectors such as construction, logistics, and infrastructure development. --- Suzanne Y. Pierce
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“A new Western Pennsylvania power plant will not only power a gargantuan data center campus, it will actually add electricity generation to the region's much strained grid.”
Why this is important: As data center growth puts increasing pressure on the electric grid, there is an opportunity for new generation to both supply the new demand while concurrently supporting the grid at large. In Homer City, Pennsylvania, such a solution is in the works.
Developers are constructing a 4.5 gigawatt (GW) natural gas power plant and data center campus. While approximately 3.7 GW of the plant's generation will supply the new data centers, the remaining 800 megawatts (MW) will provide additional generation for the electric grid. Even though 800 MW is only a fraction of Pennsylvania's electricity generation, it is still enough generation to supply power to thousands of homes and will thus provide both benefits to the grid and generation for the new data centers. --- Steven W. Lee
| Data Centers, Power Markets, and the Economy: How the AI Buildout is Reshaping Energy Costs and the Grid | |
By Barry A. Naum
Data centers – driven by artificial intelligence, cloud computing, and hyperscale digital infrastructure – are the new reality and are emerging as a consequential force in the United States economy. What was once a niche planning issue for utilities has now become a national debate as power-intensive data center loads are already impacting electricity rates, grid reliability, inflation, and economic development. Over the past several months, and especially in early 2026, nearly all sectors have begun to grapple with how the demands of the digital economy are reshaping energy systems and household costs, often resulting in significant public and policy-driven backlash.
Click here to read the entire article.
| | Featured Attorney Question & Answer | | |
Julian E. Neiser
Member; Chair, Litigation Department; Co-Chair, Construction Group; Chair, Alternative Dispute Resolution Practice Group
Office 412.325.1116
jneiser@spilmanlaw.com
Q: Are there any recent economic issues that you see impacting owners, contractors, or subcontractors?
A: There has been a rise in bankruptcy filings that are creating significant payment issues for contractors. If contractors and subcontractors cannot secure their rights through bonds or mechanic’s liens, they may be forced to take pennies on the dollar if a bankruptcy is filed because they may be treated just like any other unsecured creditor. It is always uncomfortable when a long-standing customer relationship is strained over payment issues. There are times when contractors or subcontractors need to give payment flexibility, but there are telltale signs when a project truly is troubled. For example, if a general contractor begins telling subcontractors that payment is forthcoming once “refinancing” is completed or upon resolution of another claim, this can mean that the overall payment relationship is in danger. Keep an eye out for non-responsiveness regarding unpaid invoices, delay tactics, or other excuses that cannot be documented. If a bankruptcy is filed, make sure you consult with a lawyer immediately to preserve your rights. A missed deadline in bankruptcy can be fatal. Our general rule is to always secure mechanic’s lien rights and file bond claims if there are any uncertainties. Hurt feelings can resolve over time, but a missed opportunity to secure payment can be forever.
Q: How are you handling the potential for tariffs with clients?
A: They are a factor just like any other potential price increase. Owners need certainty on price, and contractors need to ensure a profitable job. I’m finding that an open discussion during contract negotiations related to price escalation and early procurement can help minimize significant problems down the road. I look at the potential for tariff impacts the same as a force majeure event. Is the increase foreseeable? Has it been threatened at the time of contracting? If it is a known factor that the parties simply miss, then the possibility for negotiation may be lost. Otherwise, the parties should create a provision that addresses the possibility of tariff impacts and how they may be handled, either through a change order or even a tariff contingency item that is credited back to an owner if not used.
Q: You’ve been practicing for over 25 years as a trial attorney. Has your role with clients changed over time?
A: It seems like yesterday when I was called into a partner’s office for my first construction case…My role definitely has changed. Clients certainly want me involved if a case is going to trial, but we have developed such a great team of lawyers at Spilman that I don’t need to be front and center all the time—though I do still love trial work and am excellent at it. My best value is anticipating issues during contract negotiations, working on projects with client teams during construction, and helping to resolve problems before a claim is filed. We do some of our very best work outside of litigation because we generally can anticipate where a case may end before it is even filed. It’s amazing to think that you can dedicate an entire career to becoming an effective trial lawyer, but your ultimate role is avoiding litigation altogether. I tell clients this all the time, and I mean it: My job is to put myself out of business.
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