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CONSTRUCTION CLAIMS BUILDING BETTER OUTCOMES FALL 2026 ISSUE 3 • VOLUME 11 KEEPING THE LITIGATION LIONS AT BAY MASTERING THE FREEZE PERIOD Liability, Damages, and Insurance Coverage Considerations When Payment Disputes CD Claims Collide ANDOne Company For All Your Consulting Needs GL & CD FORENSIC SERVICES Expert Disciplines A-W Architects Biomechanical Engineers Building Envelope Certified Industrial Hygienists (CIH) Civil Engineers Cost of Repair Consultants Delay Claims Consultants Dram Shop & Public Safety Electrical Engineers Environmental Consultants Fire and Explosion Investigators General Contractors Geotechnical Engineers Heavy Equipment Operations Materials Science Engineers Mechanical Engineers Metallurgists NY Labor Law Premises Liability Consultants Premises Security – Police Practices Property Loss Consultants Safety Consultants Safety – OSHA Structural Engineers Transportation/Traffic Engineers Trial Exhibit Animators UAV (Drone) Pilots Waterproofing Consultants CD & GL Forensic Consulting Property Loss Consulting Construction Consulting mcconsultants.com 800.729.0355 35FALL 2026 | 3 THE BONES FALL 2026 10 ON THE COVER WHEN PAYMENT DISPUTES AND CD CLAIMS COLLIDE Liability, Damages, and Insurance Coverage Considerations 22 KEEPING THE LITIGATION LIONS AT BAY Watching for ‘Zebras’ in Plumbing and HVAC Claims 26 MASTERING THE ‘FREEZE PERIOD’ Why the Pre-Litigation Window Drives Construction-Defect Outcomes 30 FRIEND, FOE, OR FUTURE EXPERT WITNESS? When AI Enters Construction Claims 14 New Jersey Turning Litigation Risk Into Settlement Leverage 16 Florida When Date of Breach Determines Damages 18 Texas Settlement Does Not Automatically Extinguish Contractual Indemnity Rights 20 Colorado When Reason Drives Resolution 4 Inside Counsel Dallas, We Have a Conference 6 Ask the Expert Checking In on 2026 FEATURES STATE-BY-STATEDEPARTMENTS4 | CONSTRUCTION CLAIMS TheCLM.org/Magazine INSIDE COUNSEL DALLAS, WE HAVE A CONFERENCE By the time this issue of Construction Claims is hot off the press, we’ll be in Dallas for the 2026 CLM Construction Conference. If you’re joining us, please be sure to say hello—I would love to catch up with those of you I already have the pleasure of knowing, make new connections, and discuss article ideas for future issues of the magazine. If you’re unable to make it this year, I highly recommend attending next year’s conference—it’s a great opportunity to connect with peers, share ideas, and expand your knowledge. The conference provides CLM members and fellows in construction claims, risk management, and litigation the chance to come together to tackle the industry’s most pressing challenges head-on. Opportunities to engage in lively roundtable discussions and network with other industry professionals abound. The conference sessions will cover a wide range of topics that are crucial to construction claims professionals, from the use of artificial intelligence (AI) in construction projects to what keeps commercial builders up at night. Reflecting on the topics that will be discussed at the conference, this issue of Construction Claims includes a feature article on page 30, authored by Nikki-Ann Thomson, J.M., MBA, Priderock Capital Partners, examining AI’s growing role in construction investigations and risk management. She notes that despite significant investment in AI-enabled technology, many organizations focus solely on what AI can do rather than what it should do. Thomson notes, “Construction claims…offer a useful lens through which to examine AI- assisted claims investigations, AI-generated expert reports, drone inspections, AI hallucinations, chain of custody, and enterprise risk governance.” Thomson also provides principles for the responsible use of AI, as well as a practical roadmap for professionals seeking to incorporate AI into their practices. In addition, CLM members Phyllis Modlin, Markel; and Elaine Fresch, Hawkins Parnell & Young LLP, authored our cover feature on page 10 about liability, damages, and insurance coverage considerations when payment disputes and construction-defect claims clash. They note that payment and defect disputes occur simultaneously because the existence of one often gives rise to the other. They write, “Owners may rely on alleged defects to justify withholding payment, while contractors seek payment based on substantial performance and challenge the legitimacy or scope of claimed deficiencies.” These disputes, they emphasize, are among the most common sources of litigation in the construction industry. These are just some of the topics that will be discussed at length at the CLM Construction Conference. I look forward to seeing those of you who are joining us in Dallas, and I hope to see everyone else at next year’s conference! K ANGELA SABARESE Associate Editor Angela.Sabarese@TheCLM.org FALL 2026 ISSUE 3 • VOLUME 11 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© 2026 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 Clark2026/27 CONFERENCES & EVENTS CHAPTER EVENTS HAPPEN YEAR-ROUND. LEARN MORE: TheCLM.org/events Sponsorship: Sponsorship@TheCLM.org Speaking: Programming@TheCLM.org DATES, LOCATIONS, TOPICS, AND EVENT NAMES SUBJECT TO CHANGE. REV.08182026 DATE CONFERENCE/EVENT LOCATION LITIGATION MANAGEMENT WEEK LITIGATION MANAGEMENT WEEK OCTOBER 13-14 Litigation Management Symposium CHICAGO OCTOBER 14-17 Litigation Management Institute CHICAGO DECEMBER 2 Women’s Summit CHICAGO DECEMBER 3 Focus Conference & Holiday Party CHICAGO • Alternative Dispute Resolution • Extra-Contractual • Insurance Coverage • Insurance Fraud • Claims & Litigation Management JANUARY-APRIL Leadership Accelerator VIRTUAL + ANNUAL CONFERENCE MARCH 31-APRIL 2 Annual Conference SAN DIEGO MAY 18-19 Work Comp Conference NASHVILLE MAY 20-21 Focus Conference NASHVILLE • Insurance Fraud • Property • Subrogation • Transportation • Claims & Litigation Management SEPTEMBER 8 CCO Summit (invite only) DALLAS SEPTEMBER 8-10 Claims College DALLAS SEPTEMBER 22-24 Construction Conference AUSTIN OCTOBER 12-13 Litigation Management Symposium CHICAGO OCTOBER 13-16 Litigation Management Institute CHICAGO DECEMBER 8 Women’s Summit CHICAGO DECEMBER 9 Focus Conference & Holiday Party CHICAGO • Alternative Dispute Resolution • Extra-Contractual • Insurance Coverage • Cyber, Management & Professional Liability • Claims & Litigation Management 2027 CONFERENCES & EVENTS6 | CONSTRUCTION CLAIMS TheCLM.org/Magazine ASK THE EXPERT QUESTION: What are some of the most significant developments shaping the construction market so far in 2026? What trends are you seeing in construction claims, and what can the industry expect in the second half of the year? A: The U.S. construction market is entering the second half of 2026 amid significant transition. While overall activity continues to grow, that growth is increasingly uneven, with investment concentrating in high-demand sectors such as data centers, power infrastructure, advanced manufacturing, and other large-scale projects. At the same time, contractors continue to face pressure from elevated construction costs, persistent labor shortages, changing project demands, and increasingly complex claims. The result is a market where project viability, operational efficiency, and effective risk management are becoming more impor- tant to long-term performance. 2026 Construction Claims Trends Construction injury claims across the U.S. are increasing in 2026, reflecting a shift in underlying risk dynamics despite recent im- provements in fatality rates. Several factors are contributing to this trend. The industry’s reliance on less experi- enced labor is linked to inconsistent safety adherence, particularly in fall protection, equipment handling, and trench safety. At the same time, multi-trade congestion and coordination challenges on large job sites contribute to accidents and exposure to injury-related claims, making proactive risk management increasingly important. The complexity of construction projects is also affecting how claims are investigated and resolved. Large-scale developments can involve numerous contractors, subcontractors, project owners, and other stakeholders, creating more complicated liability structures and contractual relationships. As a result, claims investigations often require greater documentation, longer resolution timelines, and higher legal costs. Another area of concern is construction equipment theft, which has become more or- ganized, technology-driven, and more difficult to recover. Construction equipment theft alone is estimated to cost the U.S. $300 million to $1 billion annually, with a recovery rate of less than 25% each year due to limited equipment iden- tification systems and the difficulty of tracking missing assets once they leave the job site. Developments Shaping the 2026 Construction Market Construction growth is becoming increas- ingly concentrated in large-scale megaprojects, which now account for approximately 25% of nonresidential construction spending, with data centers and infrastructure driving signifi- cant investment. Labor remains another critical constraint. The industry is projected to face a shortage of approximately 349,000 workers in 2026, ac- cording to Associated Builders and Contractors (ABC), putting pressure on project delivery, productivity, and margins. Technology is becoming an essential part of the solution. Artificial intelligence (AI), automation, real-time data, and integrated platforms are increasingly being used to address workforce challenges, improve productivity, and strengthen project oversight. K CHECKING IN ON 2026 Greg Perruzzi senior vice president, practice leader, construction vertical Gallagher BassettVirtual No Travel Costs Offering focused, interactive learning to help claims professionals strengthen critical skills and navigate complex challenges. Led by industry experts, each bootcamp combines practical instruction, real- world scenarios, and hands-on learning to build strategies participants can put into practice. Take a deep dive into a single claims topic and earn up to 4 hours of CE/CLE through focused virtual learning. Insurance Coverage THURSDAY, OCTOBER 1 11:00 AM • 4:00 PM EST. Negotiations THURSDAY, OCTOBER 29 AND NOVEMBER 5 1:00 PM • 3:00 PM ET. (ATTENDANCE REQUIRED EACH DATE) Subro WEDNESDAY, NOVEMBER 4 11:00 AM • 4:00 PM ET. 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Basecamp AEC Bremer Whyte Brown & O’Meara, LLP Exponent HaystackID imedview, Inc. MC Consultants, Inc. Veritext Brillouin CFI Evidence Services, LLC Cogneesol DeFacto Consulting Group, Inc. Dunn Carney Allen Higgins & Tongue, LLP Envista Forensics ESI (Engineering Systems Inc.) Forensic Engineering Company, LLC (FEC) Freeman Mathis & Gary, LLP Haag, a Salas O’Brien Company Halliwell J.S. Held LLC JAMS LGI Forensic Engineering, P.C. Litify Inc. Nelson Forensics Tile & Stone Consultants Vernis and Bowling Walter P Moore HKA Plastic Expert Group Proactive RC Services, LLC Sandline Global EMERALDNext >