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VOLUME 24   ISSUE 15   August 14, 2026

Editor's Notes

Welcome to the first issue of Construction Claims & Risk Management, the re-engineered and greatly expanded version of Construction Claims Advisor, founded in 2003. Today’s construction industry is wrought with new risks - tariffs, politics, war, climate change and AI. The editors and contributors will be your go-to source for advice to make your life easier amidst the day-to-day noise that threatens to throw your project off the rails.

This Issue’s Case Summary Notes

Language in contracts and statutes is usually interpreted according to ordinary or common usage. Courts regularly cite a dictionary meaning. Some terminology, however, gains a specialized, technical meaning within a particular trade, industry, or profession. Such terminology are terms of art and are interpreted in accordance with their specialized use.

The Minnesota Supreme Court recently interpreted the word termination as used in a statute of limitations governing the construction of improvements to real property. The term does not refer to the conclusion of physical work. It is a term of art within the construction industry and construction contracts. Termination refers to the conclusion of a contractual relationship, not the status of physical work.

The second case in this issue involves an alleged defective specification. A contractor argued the specified materials would hinder obtaining the required warranty for the roofing system and contended that the problem excused its failure to perform the work in accordance with the contract schedule.

The third case addresses the choice of state law governing a performance bond claim. The bonded project had a determinative location. The domicile of the parties to the construction contract and the location where the contract was created were not determinative.

Case Summaries

Sub-Bid Subcontract Could Include Out-of-Trade Work

A contract drawing had not been admitted into the judicial record. Consequently, an appellate court could not determine whether out-of-trade site improvements had been incorporated into the masonry subcontract.

Contract Accidentally Signed “Individually

The managing member of a limited liability company signed a signature block that referred to the member “individually.” The body of the agreement, however, consistently referred to the LLC as the contracting party. The agreement was ambiguous regarding the member’s personal liability on the contract.

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