Understanding the 2026 August legal landscape

By Emma Peterson. 

The latest Cotney Brief helps contractors stay ahead of evolving legal and business challenges with insights on tariffs, claims management, documentation practices and project risk mitigation. 

Every day there are legal decisions being made that change the way the world operates. But it can be a lot to keep up with on top of day-to-day business. That’s why Trent Cotney, a partner and roofing litigation/arbitration expert at the Adams and Reese law firm puts together a monthly newsletter, Cotney Briefs, that identify and help contractors understand the most relevant decisions and changes affecting the roofing industry. Here’s what he highlighted this August. 

1 – Tariff increases 

Federal tariffs have increased and with that construction costs are rising. Specifically, this month saw a new 50% tariff on specialized Canadian imports that include construction cement, paint, plywood and fiber cable. These tariffs, in addition to the previous ones, will continue to put pressure on construction markets. Trent specifically highlighted “structural steel, metal roofing, HVAC equipment, electrical components, fasteners and construction machinery” as areas of impact. 

What this means for contractors: Contractors should document any supplier increase and identify any tariff exposures without bidding as to be able to build appropriate protections into their contracts. Without these protections (which include price-escalations, change-in-law, force majeure and notice provisions), contractors are likely to bear any increased costs. 

2 – Contract Waives Claim case 

In the case, Arnell Construction Corp. v. New York City School Construction Authority, the primary issue was “change-order work performed on a renovation project for the New York City School Construction Authority.” In the case, Arnell was seeking $2.44 million in compensation while SCA moved to dismiss the action because of a “not timely satisfied the applicable notice-of-claim requirement.” It is this dismissal that the court held in favor of. 

What this means for contractors: The court’s reasoning was New York Public Authorities Law § 1744(2), which states that a notice of claim should have been presented within three months of the claim accruing. For other contractors, this is a good reminder of the importance of identifying when damages become ascertainable as to provide the verified notice immediately rather than relying solely on contractual change order procedures. 

3 – Presumption provision 

Daily reports are a crucial piece of evidence in the case of project disputes. However, it is not uncommon for the opposing party to claim the presented reports were “inaccurate, incomplete or self-serving.” Contractors can avoid this issue by including a daily report presumption provision that “encourages the parties to review project records while the events remain fresh. If the receiving party does not object within a stated period, the report becomes presumptively accurate.” 

What this means for contractors: This does not make daily reports fully conclusive, but it shifts the burden away from the contractor and to the party challenging the report. Trent shared an example of what this provision might look like:  

Daily Reports and Project Records. Contractor may prepare and distribute daily reports documenting labor, manpower, equipment, materials, deliveries, weather, site conditions, inspections, work performed, delays, disruptions, directives and other material project events. Each daily report shall be deemed presumptively accurate unless Owner provides Contractor with a specific written objection identifying the disputed information within five business days after receipt. A general objection or reservation of rights shall not be sufficient. Failure to timely object shall not make the report conclusive, but the report shall constitute prima facie evidence of the matters stated therein. The parties may rely on daily reports, photographs, time records, delivery tickets, equipment logs and similar contemporaneous records in evaluating claims for additional time or compensation. 

4 – Community opposition as a construction risk 

You’ve probably seen headlines about communities protesting projects related to data centers, manufacturing plants, multifamily developments and major infrastructure projects due to traffic, environmental and cultural concerns. In response, many projects have hit roadblocks in areas like zoning approvals, permitting, utility access and project financing. These delays pose unique challenges to contractors even if the ultimate project continues. Trent explained: 

A delayed zoning or environmental approval may postpone mobilization while labor, equipment and material commitments remain in place. New permit conditions may require redesign, additional scopes of work or different construction sequencing. Limits on construction hours may reduce productivity, while expanded traffic-control obligations may require additional personnel and equipment. A utility may also condition service on expensive system upgrades or delay energization until infrastructure improvements are completed. 

What this means for contractors: Contractors should be aware of community opposition as a construction risk and determine what party bears the risk of opposition and delas before signing anything. Specifically, they should avoid agreeing to comply with broad statements, like “community requirements.” Further, contractors likely would benefit from adjusting contract language to provide additional time and compensation when community opposition and delays occur. 

Read the entire August 2026 brief!