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CONSTRUCTION CLAIMS BUILDING BETTER OUTCOMES SUMMER 2026 ISSUE 2 • VOLUME 11 RETAINING THE NEXT GENERATION PREPARING CONSTRUCTION WITNESSES CONSTRUCTION TRENDS DRIVING HIGH-SEVERITY CLAIMS DATA CENTER RISKS The Rise ofmcconsultants.com SERVING CLIENTS NATIONWIDE THOUSANDS OF SATISFIED CLIENTS 200 + FORENSIC EXPERTS 200 + AREAS OF EXPERTISE 2,000 + EXPERT TESTIMONIES 10,000 + COSTS OF REPAIR 800.729.0355 35 GL & CD FORENSIC SERVICES ONE COMPANY FOR ALL YOUR CONSULTING NEEDSSUMMER 2026 | 3 THE BONES SUMMER 2026 8 ON THE COVER THE RISE OF DATA CENTER RISKS Construction Trends Driving High-Severity Claims 18 RETAINING THE NEXT GENERATION CLM Young Professionals Discuss Drivers Behind Staying or Leaving the Industry 26 PREPARING CONSTRUCTION WITNESSES Managing Anxiety, Credibility, and Communication in High-Exposure Cases 22 A POWERHOUSE SEQUEL The Return of Sensors Is Building Better Claims Outcomes on the Job Site 30 UNDER INVESTIGATION The Fundamentals of Claims Investigations and the Role of SMEs 12 California Building a Smarter Case for AI 14 Texas The Legal Deep End 16 Florida Navigating the Expanding Liability Landscape 4 Inside Counsel The Other Piece of the Puzzle 6 Ask the Expert Constructing a Conference FEATURES STATE-BY-STATE DEPARTMENTS4 | CONSTRUCTION CLAIMS TheCLM.org/Magazine INSIDE COUNSEL THE OTHER PIECE OF THE PUZZLE As seasoned professionals retire and organizations struggle to replace them, the talent crisis has become one of the most pressing challenges facing the construction claims industry. In the previous issue of Construction Claims, CLM reached out to young professionals to hear their perspectives on recruitment strategies and experiences. However, recruitment is only the first step in the process: Once an employee is hired, efforts must be made to retain talent, not only with a company or firm, but also within the field. In this issue, I had the opportunity to speak with the same young professionals—this time, to discuss the challenges and opportunities that come with retaining new talent once it is hired. Retention, these professionals note, is largely driven by supportive leadership and mentorship, a healthy work culture, a sense of being heard and valued, and opportunities for education and growth. Read the feature, “Retaining the Next Generation,” on page 18, for additional insight on what can be done to incentivize the new generation of professionals to stay once it is recruited. Be sure to also check out our exclusive online article at theclm. org/magazine, “Seasoned Professionals Respond to the Next Generation,” in which a panel of industry veterans responds to the young professionals’ thoughts on recruitment. A follow- up interview with these seasoned experts on retention will be published shortly after this issue goes to print. A Formal Introduction As noted in our spring issue by CLM Director of Content Phil Gus- man, I have taken a leading role on planning and assembling CLM’s Construction Claims. It has been an incredibly rewarding experi- ence learning about the ins and outs of the industry from both the CLM editorial team and membership within CLM’s Construction Community, and I look forward to continuing to learn and grow in my role. The magazine will continue to rely on expert insight from construction claims industry professionals on the most important topics that impact your careers and day-to-day work. We have also revived our Construction Claims magazine advisory board, which has been an invaluable resource that I consult for every issue. The board—which includes Terence Kadlec, MC Consultants; Jack Levy, The GLB Attorneys; Karen Rice, Proactive; and Phyllis Modlin, Markel—offers expert perspectives, article ideas on trending topics, and connections with a diverse, expanding pool of writers from the industry. I’ve already had the pleasure of meeting many of you at CLM’s Annual and Construction Conferences, and I am grateful for the warm welcome that I’ve received. I look forward to reconnecting with those I’ve met and getting to know more of you in Dallas at this year’s Construction Conference in September! As always, feel free to reach out to me at angela.sabarese@ theclm.org with article ideas and suggestions. I look forward to continuing to work with you all. K ANGELA SABARESE Associate Editor Angela.Sabarese@TheCLM.org SUMMER 2026 ISSUE 2 • 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 ClarkKEY SPONSORSHIP OPPORTUNITIES AVAILABLE NOW: Sponsorship@TheCLM.org ALL OTHER QUESTIONS: Help@TheCLM.org REGISTRATION NOW OPEN CONFERENCE CONSTRUCTION SEPTEMBER 23-25 • DALLAS BUILD THIS INTO YOUR 2026 CALENDAR Early Bird Discount THROUGH JULY 196 | CONSTRUCTION CLAIMS TheCLM.org/Magazine ASK THE EXPERT QUESTION: The 2026 CLM Construction Conference begins on Sept 23. What makes this year’s conference a can’t miss event for construction claims professionals? A: This year’s CLM Construction Conference is designed to deliver exactly what builders, insur- ers, attorneys, consultants, brokers, and claims professionals need most right now: clarity, strat- egy, and practical tools to navigate an increas- ingly complex construction-risk landscape. Attendees can expect a highly focused program that goes beyond theory and gets into the realities of today’s claims and litigation environment. From evolving liability exposures to the growing impact of economic pressures, labor shortages, and project delays, the sessions are built to address the issues professionals are actively managing in their day-to-day work. The conference brings together experienced claims leaders, coverage counsel, and industry experts who understand these challenges firsthand and can offer actionable insights; not just high-level commentary. This Year’s Standouts What makes this year especially valuable is the emphasis on real-world problem solving. The programming is tailored to reflect current trends, including the rising frequency of large- loss construction claims; the increasing scru- tiny on cost management; and the importance of early, strategic claims handling. Attendees will gain practical guidance on topics such as managing complex defect claims, navigating coverage disputes, leveraging experts effective- ly, and mitigating exposure before it escalates. Equally important is the opportunity to hear directly from a diverse group of stake- holders—builders, insurers, attorneys, consul- tants, brokers, and claims professionals—each bringing a different perspective to the same issues. That cross-functional insight is critical in construction claims, where outcomes often depend on coordination and alignment across multiple parties. The ability to engage in candid discussions and compare approaches adds a level of value that simply cannot be replicated elsewhere. Networking Opportunities Abound Beyond the educational sessions, the confer- ence offers meaningful opportunities to build and strengthen professional relationships. Construction claims is a relationship-driven field, and the ability to connect with peers, exchange ideas, and develop trusted contacts is a key advantage. Whether it is discussing emerging challenges, sharing best practices, or identifying solutions collaboratively, those interactions often have lasting impact well beyond the conference itself. In short, this year’s CLM Construction Conference is not just an educational event; it is a working session for professionals who want to stay ahead of the curve. Attendees will leave with sharper strategies, stronger connections, and a clearer understanding of how to manage risk and drive better outcomes in an increas- ingly demanding claims environment. K Register for the CLM Construction Conference at theclm.org/allevents. CONSTRUCTING A CONFERENCE Stephen J. Henning Founding Partner, Wood Smith Henning & Berman LLP Phyllis A. Modlin Director & Senior Counsel, Markel Service, Inc.AT CLM CLAIMS COLLEGE INVEST IN YOUR CAREER • Casualty Claims • Claims Mediation • Construction • Cyber Claims • Excess Lines • Extra-Contractual Claims • Leadership • Litigation Management • Professional Lines • Transportation • Workers Compensation Earn real-world skills through the expert guidance of knowledge leaders who craft the curriculum and teach the courses at our annual Claims College. Participants can work toward an insurance claims designation that has become the industry standard or earn a one-level certificate to show off your hard work. Scan to learn more and enroll now! SEPTEMBER 9-11 • BALTIMORE CLAIMS COLLEGE CERTIFIED CLAIMS PROFESSIONAL (CCP) DESIGNATION • ADVANCED CLAIMS PROFESSIONAL (ACP) DESIGNATIONSUMMER 2026 | 9 D ata centers have become one of the fast- est growing and most capital-intensive sectors in construction. As investment accelerates, particularly in concentrated metropolitan regions, these projects are introducing a distinct risk profile that differs materi- ally from traditional commercial construction. For insurers, claims professionals, and construc- tion stakeholders, the shift is not simply one of scale; it is a shift in where value is concentrated, how projects are sequenced, and how failures develop. These factors are driving an increase in claim severity, particularly where the performance of electrical and cooling systems is central to the asset. Capital Concentration and Risk Allocation In conventional construction, the building structure and envelope typically define both progress and value. In data center construction, that model is inverted. Approximately 50% of total project cost is tied to electrical infrastructure. This includes utility service, medium-voltage distribution, switchgear, uninter- ruptible power supply systems, backup generation, paralleling gear, and distribution to high-density loads. Mechanical and cooling systems often repre- sent an additional 15% to 20% of project cost, par- ticularly as high-density computing drives adoption of liquid cooling technologies. The remaining portion of the project, includ- ing structure, enclosure, and support systems, exists primarily to protect and enable the operation of these technical systems. This concentration of value materially changes the nature of risk. Losses involving electrical or cooling systems are not simply repair issues; they are perfor- mance risks that can impair the entire facility. As a result, claim severity is increasingly driven by system reliability rather than traditional construction defects. CONSTRUCTION TRENDS DRIVING HIGH-SEVERITY CLAIMS BY THOMAS ROCHA AND RYAN PITTERSON DATA CENTER RISKS The Rise ofNext >