Last week, Seyfarth's Brenda Radmacher presented at West Coast Casualty's 31st Annual Construction Defects Conference. Along with other industry leaders in the construction industry, Brenda provided professional tips on how to best manage risk, avoid, and mitigate construction disputes. The key takeaways include:
1. Innovation is Reshaping Risk
- 3D printing, modular construction, and robotics are revolutionizing how buildings are made—but they also introduce new liability questions.
- As construction methods evolve, so do the types of defects and the parties potentially responsible.
2. Climate and Sustainability Are Driving Legal Change
- Extreme weather events and climate adaptation are pushing updates to building codes and increasing defect claims.
- Green building materials and energy-efficient systems are becoming standard, but they come with performance and durability uncertainties.
3. New Property Uses, New Legal Challenges
- Office-to-residential conversions and Accessory Dwelling Units (ADUs) are on the rise, creating complex ownership and defect liability issues.
- These conversions often involve aging infrastructure and zoning changes, increasing the risk of litigation.
4. Specialized Projects Bring Specialized Risks
- Data centers and semiconductor fabs have unique defect exposures, especially related to electrical and environmental systems.
- Energy projects (solar, wind, nuclear) face high-stakes disputes over performance, delays, and force majeure events.
5. Legal Landscapes Are Shifting
- States like Arizona, California, Florida, and Georgia are considering updating statutes of repose, implementing inspection mandates, and changing trial procedures.
- California's new laws expand liability for design professionals and require inspections of balconies and decks in multifamily housing.
6. Litigation Trends to Watch in 2025
- Expect more claims involving:
- Delay damages and business interruption
- Multi-policy insurance disputes
- Defects in AI-driven or prefabricated construction
- The complexity of ownership and construction methods will drive more multi-party litigation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
