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CONSTRUCTION CLAIMS BUILDING BETTER OUTCOMES FALL 2025 ISSUE 3 • VOLUME 10 PROGRESS ISN’T PERFECT IRONCLAD NO MORE? EXAMINING TARIFFS, FLUCTUATING MATERIAL COSTS, AND LABOR SHORTAGES the Untangling Uncertain LandscapeConstruction Related Claims Construction Defect, Job Site Accidents, Delay Claims, Heavy Equipment, NY Labor Law & Surety Claims Pre-Suit Claims Engineering Analysis, Construction Claims, General Liability Claims Accident Reconstruction Commercial Vehicles, Bicycles / Motorcycles Multi-Vehicle Collisions, Driver Factors Cause & Origin Investigations Investigate Claims, Evaluate Damages, Repair Specifications, Reconstruction Oversight Trip / Slip / Fall, Coefficient of Friction Analysis, Premises Security, Alcohol-Related Injuries Cost Estimating & Damages Analysis Cost of Repair, Repair Recommendations, Damages Analysis and Reasonableness of Costs Aerial Drone & MC Virtual-360 ™ High Resolution Aerial Photography / Videography 360 Camera / 3D Scanning, Room & Entire Structure Animation Services Animation Trial Exhibits and Litigation Support Videos 35 Premises Liability/ Security & Dram Shop WHO CAN SERVE ALL YOUR CD & GL FORENSIC NEEDS? 800.729.0355 One Company For All Your Consulting Needs GENERAL LIABILITY & CONSTRUCTION FORENSICSFALL 2025 | 3 THE BONES FALL 2025 8 ON THE COVER UNTANGLING THE UNCERTAIN LANDSCAPE Examining Tariffs, Fluctuating Material Costs, and Labor Shortages 22 PROGRESS ISN’T PERFECT Emerging Professional and Technological Risks Facing Contractors and Design Professionals 26 OUTSIZED INFLUENCE The Role of Additional Insured Exposure in Resolving Builder-Subcontractor Construction-Defect Disputes 30 SITE SAFETY Common Builders Risk Claims and How to Avoid Them 12 Tennessee Containing the Cost 14 New York Ironclad No More? 16 Florida Stuck Between Concrete and Rebar 18 Premier Session Preview AI in Construction Claims 4 Inside Counsel It’s Always Sunny in San Diego 6 Ask the Expert Conference Happenings FEATURES STATE-BY-STATEDEPARTMENTS4 | CONSTRUCTION CLAIMS TheCLM.org/Magazine INSIDE COUNSEL It’s that time of year again, and shortly after this issue goes to press, we’ll be in San Diego for the 2025 CLM Construc- tion Conference. This conference offers claims and litigation professionals in the construction space an unparalleled opportunity to connect with peers and discuss and learn about the industry’s most pressing issues, from longstanding challenges such as the skilled labor shortage to emerging risks such as convert- ing commercial buildings for residential use. CLM’s mem- bers and fellows leverage their knowledge and experience to present compelling, informative sessions; and the CLM staff goes above and beyond to create the ideal setting for net- working and professional development. It is our hope that all of CLM’s construction professionals take advantage of this opportunity and attend the Construction Conference. If you are not here with us this year, then consider joining us for a future Construction Conference to learn from and share your expertise with your peers. In this issue of Construction Claims, we’ve included some conference-related articles. For those in attendance, these columns offer a preview of what you can expect while you’re with us in San Diego. For those unable to make it to this year’s conference, I encourage you to take a spin through the articles and see what kind of content you can expect as you plan your conference schedule for next year. First, in our “Ask the Expert” column on page six, CLM member Jack Levy, The GLB Attorneys, breaks down some of the conference sessions that he is most looking forward to attending. Levy is a frequent Construction Claims author and often writes about emerging trends and cutting-edge construction-related topics, and it is through that lens that he analyzes this year’s pre- sentations. It’s interesting to see which topics caught his eye and how he expects to apply what he learns in his practice. Next, on page 18, the presenters for Sept. 17’s Premier Session, “Human vs. Machine: Live AI Showdown in Construction Defect Claim Review,” offer both a preview of their presentation, and a quick dive into the topic of how artificial intelligence will transform the construction claims landscape. The authors include CLM heavy hitters Terence Kadlec, MC Consultants, Inc.; Michael Hinojosa, National Claim Services LLC; Steve Lokus, Sompo International Insurance; and Rose Hall, RH Business Ventures, LLC. The authors note that if you view AI as a tool that is still out of reach, chances are you’re already using it through familiar devices and applica- tions. As AI continues to be integrated into our everyday lives, it will seem less intimidating and become more useful. I look forward to seeing all of you who are here with us in San Diego, and everyone else at a future CLM Construc- tion Conference! K PHIL GUSMAN Editor Phil.Gusman@theCLM.org FALL 2025 ISSUE 3 • VOLUME 10 Construction Claims is published four times a year and covers all aspects of construction-related claims, including construction defect, site accidents/injuries, insurance coverage, subcontractor issues, and new technologies that address both national and regional/ statewide audiences. Copyright© 2025 by the Claims and Litigation Management (CLM) Alliance. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the Claims and Litigation Management (CLM) Alliance. The views expressed in the articles are solely those of the authors and do not necessarily reflect the views or opinions of the Claims and Litigation Management (CLM) Alliance or the companies in which the authors are employed. ART DIRECTOR/ PUBLISHING OPERATIONS MANAGER Jason T. Williams ADVERTISING Jeremy Campbell jeremy.campbell@TheCLM.org 513-377-7228 EDITORIAL SUBMISSIONS & QUESTIONS Phil Gusman at phil.gusman@TheCLM.org REPRINTS For reprints and licensing please contact Jeremy Campbell at jeremy.campbell@TheCLM.org or 513-377-7228. PRESIDENT Susan Wisbey-Smith VP PARTNERSHIPS Jeremy Campbell SENIOR ACCOUNT EXECUTIVE Laurel Metz ACCOUNT EXECUTIVE Megan Josd DIRECTOR OF CONTENT Phil Gusman ASSOCIATE EDITOR Angela Sabarese ASSISTANT EDITOR Fran Clark IT’S ALWAYS SUNNY IN SAN DIEGODetermining the cause of an accident is no easy feat. It’s a science. Rimkus forensic engineers and consultants have decades of experience reconstructing accidents of all kinds to determine what happened and why. We also provide expert testimony at trial. If you’re facing a complex forensic challenge of any kind, count on us to uncover the facts. YOU HAVE QUESTIONS. WE PROVIDE ANSWERS. WHAT HAPPENED? WITH SO MUCH AT STAKE, YOU NEED TO KNOW rimkus.com800.580.3228Consultants. Experts. Innovators.rimkus.com6 | CONSTRUCTION CLAIMS TheCLM.org/Magazine ASK THE EXPERT QUESTION: What are the top-of-mind construction claims and litigation issues that you plan to focus on during this year’s CLM Construction Conference in San Diego? A: On the construction side, the session, “Repurposed and Risky: Construction Trends in Commercial-to-Home Conversions,” looks promising because of its focus on risks inherent in changing building uses. Similarly, the session, “Beyond Tract Homes: Navigating Complex New Construction-Defect Claims,” also covers emerging litigation over different structure types and how to sift through innovative claims, such as elder abuse and fraud, which are being thrown in the mix more frequently in construc- tion-defect cases. For the job site injury claims, the session, “Do You Really Want to Hurt Me? The Do’s and Don’ts of Construction Site Safety,” is valuable to help me advise clients on best practices for a clear, structured approach to incident reporting. On the practice management side, I’m intrigued by “Claims Gone Wrong: Avoiding Pitfalls and Extra-Contractual Risk” because it dovetails with a recent training we devel- oped for claims professionals who are new to construction-defect claims. The pitch for this session is spot-on: Small mistakes in claims handling can and do lead to bad faith exposure. In the same vein, “Mind the Gap: Training the Next Generation for Construction Litigation and Claims Management” is thought-provoking because the cohort of people handling these claims is aging out, and the newer crop of law- yers and claims professionals need more basic training on claims management and resolution strategies. Similarly, “Playing Minesweeper: Navigating Coverage and Defense Pitfalls in Construction Claims” should provide use- ful techniques on how to handle the nuanced exchange of information that regularly happens on files between the claims and legal sides. For the coverage geek in me, I’m most interested in the discussion that will likely take place in the session “Navigating the Maze: Risk Transfer and Additional Insured Challenges Under Modern ISO Endorsements.” This is an important topic because risk transfer affects both the insurers and our insured clients, especially in high severity claims. A significant hit to the insured client’s loss record can dra- matically affect their cost of doing business. I’m particularly interested in decisional law that this panel has to share about the interpretation of anti-indemnity statutes, and hopefully a deeper dive on how (or if) decisional law reconciles the effect of the anti-indemnity statutes with contractual promises to provide additional- insurance coverage on a primary and non-con- tributory basis. A deeper understanding on how these concepts fit together should inform claims professionals on how to approach and resolve these claims, and the insured clients on how to structure their contracts. Otherwise, spending time with friends and making new connections is always something I look forward to. K CONFERENCE HAPPENINGS Jack Levy Attorney The GLB AttorneysSafety National ® offers multi-line insurance solutions to address large construction and contracting risks for workers’ compensation, general liability and auto liability coverage. As placement specialists for businesses like commercial general contractors, trade contractors and heavy civil infrastructure providers, we offer a flexible approach to insurance program development. We look at each submission individually and are deeply committed to designing a plan that addresses each organization’s specific needs. Visit SafetyNational.com Learn more about the benefits of partnering with Safety National, including our financial strength, deep expertise, and array of available claims and risk management services. When It Comes to Insuring Construction, We Go BigFALL 2025 | 9 A s we submit this article for publication, about one month ahead of its scheduled release, one thing remains clear: Uncertainty continues to define the economic landscape for contractors and their carriers. As of early August, tariffs on Chinese and Mexican imports were set at 30%, and for Canada, tariffs increased to 35%. U.S. President Donald Trump doubled tariffs on imported steel and aluminum from 25% to 50% on June 3, fueling further potential cost spikes for construction mate- rials. Some copper imports have additionally been subject to hefty tariffs as of Aug. 1. Of note, goods qualifying under the USMCA (United States-Mexico-Canada Agreement) are exempt from these additional tariffs, according to an April 4 Kpler “Market Update” blog, suggesting that both steel and aluminum from Mexico and Canada face only a 25% Section 232 tariff. Copper is not currently under Section 232 tariffs, and most copper imports from Canada and Mexico meet USMCA rules and are exempt, so perhaps copper imported from Canada and Mexico does not face a tariff, adding to uncertainties, indeed. According to the Feb. 10 issue of U.S. News & World Report, roughly a quarter of all steel used in the U.S. is imported, with Canada being the largest source, followed by Mexico and other allies like Japan and South Korea. Approxi- mately half of all aluminum used in the U.S. is imported, with Canada again being the top source, followed by Mexico and other allies like Japan and South Korea. Although the EXAMINING TARIFFS, FLUCTUATING MATERIAL COSTS, AND LABOR SHORTAGES BY CHRIS HEIDER AND ROBBY WELLS the Untangling Uncertain LandscapeNext >