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Is a tenant justified in terminating a lease for a build-to-suit building when unidentified odors prevent beneficial occupancy? In Wise Development, LLC v. General Services Administration, the United States Civilian Board of Contract Appeals (CBCA) recently held, no. How did the CBCA reach that conclusion and what lessons does it provide for other projects in the federal government and civilian sectors? In Wise Development, the GSA entered into lease with Wise a build-to-suit, single tenant building in Hickory, North Carolina for use as a service center by the U.S. Social Security Administrati

On March 28, 2025, the United States Court of Appeals for the Fifth Circuit dismissed a challenge to Former President Biden’s Executive order increasing the minimum wage for federal contractors to $15 per hour (or $17.75 per hour at the time of the decision due to inflation and other adjustments). What is the impact of the Court’s action and what is the status of the increased federal minimum wage? After Former President Biden signed the Executive Order, three states, Texas, Louisiana and Mississippi, filed suit to enjoin the Order from taking effect. One of the States’ arguments was tha

There has been a lot of talk about tariffs in the recent news cycle since the implementation of them by the current administration and with-it heightened anxiety on wallets. However, since the Covid pandemic, the construction industry has faced large-scale disruptions to the supply chain, delays in manufacturing and material shipments, price escalations, and impacts on the labor force.  Amazingly, Texas, for the most part and with many exceptions, has met these challenges and projects across the state are continuing to get built to the satisfaction of most of the contracting parties. That is

Can an insurer seek to escape liability for denial of a settlement demand under the Stowers doctrine by filing a declaratory judgment action in federal court after the jury has already rendered a verdict in excess of the settlement demand and insurance policy limits? In July of 2024, we reported that at least one court thought that the insurer could. https://www.gstexlaw.com/policy-limits-demand-not-stowers-demand/ However, the United States Court of Appeals for the Fifth Circuit recently reversed that ruling. As a refresher, in Golden Bear Insurance Company v. 34th S&S, L.L.C. d/b/a Concr

The 2025 Texas Legislative session is in full swing. What bills are the Texas Senate or House currently considering that potentially impact the construction industry? We discuss a few.  Securing Reserved Funds/Retainage.  S.B. 1612 by Sen. Nathan Johnson/H.B. 3287 by Rep. Keith Bell.   Under Texas’ lien laws, Chapter 53 of the Texas Property Code, non-public property owners are required to reserve 10 percent of the contract price until the completion of a construction project. Known as reserved funds (previously known as retainage), each payment application submitted by a contractor

What is the effect of a course of construction exclusion (COCE) on coverage for property damage in a phased construction project? The United States Court of Appeals for the  11th Circuit, in a case of first impression, recently held that the COCE precludes coverage for damage to completed portions of a phased project when all phases are not yet complete. In Liberty Surplus Insurance v. Kaufman Lynn Construction, JM Family Enterprises hired Kaufman to build its new corporate campus in South Florida. The campus was to consist of three office buildings, a training and conference center, a sports

May a general contractor rescind an offer of employment to a project engineer on the basis that the prospective employee used medical marijuana? A Federal Judge recently held that the prospective employee could proceed with his claims of discriminatory hiring practices under Pennsylvania state law. In Davis v. The Albert M. Higley Company, LLC, Albert M. Higley Company (AMHC), a construction general contractor, offered Brian Davis employment as a project engineer. The employment offer was contingent upon a pre-employment drug test. According to Davis’s lawsuit, Davis was diagnosed with anxie