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Seyfarth’s Construction team is pleased to announce the release of the 2025 edition of our 50-State Lien Law Notice Requirements Guide, a must-have resource for commercial contractors, real estate developers, and construction professionals navigating lien notice obligations across the United States.

This comprehensive desktop reference provides a state-by-state overview of lien notice requirements, including general timing and procedural rules for filing lien notices in all 50 states and Washington, DC. Whether you’re managing projects in a single jurisdiction or across multiple states, this guide is designed to help you stay compliant and avoid costly missteps.

Prepared by Seyfarth’s nationally recognized Construction practice, this guide reflects our commitment to delivering actionable legal insights that support your business goals.

Download the latest version here.

About Seyfarth’s Construction Group

Named a 2024 Law360 Practice Group of the Year, Seyfarth’s Construction group is one of the largest and most experienced construction law practices in the United States. We offer clients the benefits of a classic construction boutique supported by the resources of a large full-service firm. We represent clients—developers, contractors, owners, architects, engineers, subcontractors and lenders—in all phases of construction projects, from inception to completion, domestically and abroad.

Last week, Seyfarth’s Brenda Radmacher presented at West Coast Casualty’s 31st Annual Construction Defects Conference.  Along with other industry leaders in the construction industry, Brenda provided professional tips on how to best manage risk, avoid, and mitigate construction disputes. The key takeaways include:

1. Innovation is Reshaping Risk

  • 3D printing, modular construction, and robotics are revolutionizing how buildings are made—but they also introduce new liability questions. 
  • As construction methods evolve, so do the types of defects and the parties potentially responsible.

2. Climate and Sustainability Are Driving Legal Change

  • Extreme weather events and climate adaptation are pushing updates to building codes and increasing defect claims.
  • Green building materials and energy-efficient systems are becoming standard, but they come with performance and durability uncertainties.

3. New Property Uses, New Legal Challenges

  • Office-to-residential conversions and Accessory Dwelling Units (ADUs) are on the rise, creating complex ownership and defect liability issues.
  • These conversions often involve aging infrastructure and zoning changes, increasing the risk of litigation.

4. Specialized Projects Bring Specialized Risks

  • Data centers and semiconductor fabs have unique defect exposures, especially related to electrical and environmental systems.
  • Energy projects (solar, wind, nuclear) face high-stakes disputes over performance, delays, and force majeure events.

5. Legal Landscapes Are Shifting

  • States like Arizona, California, Florida, and Georgia are considering updating statutes of repose, implementing inspection mandates, and changing trial procedures.
  • California’s new laws expand liability for design professionals and require inspections of balconies and decks in multifamily housing.

6. Litigation Trends to Watch in 2025

  • Expect more claims involving:
    • Delay damages and business interruption
    • Multi-policy insurance disputes
    • Defects in AI-driven or prefabricated construction
  • The complexity of ownership and construction methods will drive more multi-party litigation.

Anthony LaPlaca, Construction partner in Seyfarth’s Boston office, was chosen as a Go-To Construction Lawyer by Massachusetts Lawyers Weekly (MLW) for 2025, recognizing him as one of “the top construction lawyers across the commonwealth.”

In LaPlaca’s profile, MLW writes:

“LaPlaca has spent his entire career litigating complex construction and design disputes across the country. While he primarily represents general contractors and design professionals, LaPlaca has substantial experience counseling owners and developers on commercial, transportation, entertainment, and energy projects, which allows him to see the best arguments on both sides of any issue.”

Seyfarth’s Anthony LaPlaca, Teddie Arnold, and Jason Smith recently published the 2025 annual update of the Thomson Reuters state law survey of construction laws and customs for the District of Columbia. This survey contains questions and answers about frequently asked questions concerning construction projects governed by D.C. law, including prompt pay and retainage requirements, stop work rights, licensing issues, warranties, bonding requirements, and litigation concerns for public and private projects. The survey is a useful resource for builders, owners, and design professionals operating in the District of Columbia and may be accessed at the link below.

https://www.seyfarth.com/dir_docs/documents/misc/construction-laws-and-customs-district-of-columbia-w-000-5983.pdf

As the Trump Administration’s tariffs are now in effect, owners, developers, and contractors managing pending construction projects face questions about who is ultimately responsible for impacts (both time and cost) resulting from those tariffs. Those negotiating contracts for upcoming projects face the predicament of allocating this future risk of material price increases and delays flowing from the new tariff regime.

Despite recent legal challenges to the tariff regime,[1] the enforceability of tariffs has not been subject to any final judicial determination, giving rise to a great deal of uncertainty and volatility.  Developers and contractors alike faced a similar unknown five years ago when the COVID-19 pandemic hit.  Many commonly used contract documents in the industry (i.e. the AIA A102 and A201) do not clearly allocate material escalation risk to any party and do not explicitly include tariffs as force majeure events. This leaves all stakeholders in a dilemma that could have serious financial impacts.

For parties currently negotiating contracts, clauses can be carefully crafted to ensure that the risk of tariff impacts is properly assigned to a specific party. The picture is murkier for those committed to existing contracts, although there may be some avenues for relief depending on how certain clauses are written. Some of the key contract terms to look for when navigating the new tariff regime are detailed below.

Price Escalation Clauses

For those who do not yet have a signed contract, a straightforward price escalation clause can allocate the risk of tariff-related price increases. This situation is more easily handled in a cost-plus contract, as the risk of tariffs is baked into the cost of the work, but parties negotiating guaranteed maximum price (“GMP”) contracts may need to draft careful language to provide for whether tariff costs will or will not count toward the GMP.

The simplest way to allocate risk is to draft a clause that expressly assigns the cost of tariffs to one of the parties to the contract. If, for example, the contract calls for the direct cost of new tariffs to be borne by the project owner, and a 25% tariff on steel is enacted after contract execution, the contractor would be entitled to an equitable adjustment of the contract for that 25% tariff. The inverse is also true, and the contract could just as easily assign the cost of potential tariff impacts to a contractor, requiring the contractor to bear any increase in costs incurred as a result of the tariffs.  While the initial contract price will likely be higher as a result of allocating the risk to the contractor, the parties will at least have a clearer picture of the costs of the work at the outset. If the parties agree to allocate tariff risk to a particular party, they should consider whether the price increase will include only the direct costs of the tariff (i.e., the 25% increase in the above scenario) or the direct and indirect costs of the tariff (i.e., the 25% increase plus incidental costs such as those due to supply chain issues).

A middle ground may be reached by allocating the risk of specific tariffs in the contract. For example, a contract may assign the risk of new tariffs to the contractor generally, but carve out certain essential or specialty items that are needed for the work, clarifying that only tariff costs related to those specific items entitle a contractor to an equitable adjustment. Such a clause better equalizes the amount of risk assumed by the parties. Other common ways to limit price escalation clauses are to either cap the total amount of price escalation that a contractor may be entitled to, or to require a certain increase in cost (typically by percentage of the overall cost of the work) before a price escalation clause is triggered (i.e. a contractor is not entitled to additional costs until price escalation increases the total cost of the work by 10%). There are countless ways to limit or shape a price escalation clause to fit the needs of a particular project and the new tariff environment is sure to lead to more creative contracting in the future.

Pre-Purchase of Material

Clearly allocating the risk of tariffs up front might also prompt the parties to agree on a pre-purchase of materials. If one party will bear the risk of material price increases, the parties may try to mitigate that impact by agreeing to pre-purchase commonly tariffed items, such as steel and aluminum, at the start of the job and storing those materials until they are needed on the project. If off-site storage is needed, the parties will need to agree on who is ultimately liable to pay those storage costs.  While a pre-purchase of material comes with its own risks, such risks may be worthwhile as compared to potential tariff impacts.

Force Majeure Clauses

Force majeure clauses exist in nearly every contract, and came to the forefront of the legal landscape during the COVID-19 pandemic. In these clauses, parties allocate the risk for certain actions that are not the fault of either party. Some of these clauses will specifically mention tariffs or other Government acts or laws, but many will not. Many force majeure clauses address time impacts only, and only provide for an equitable adjustment to the contractor of the contract time, not price. Like other force majeure events, tariffs also cause delays. Tariffs may lead to delays caused by supply chain disruptions, delays from sourcing alternative material suppliers, or delays resulting from requests for tariff exemptions. Depending on how specifically (or not) your force majeure clause was written, there could be arguments that the contractor is liable for absorbing tariff costs, or that such tariffs are a force majeure event for which the contractor is entitled to compensation.

Contingency Clauses

Many contracts include a contractor contingency clause, wherein the parties agree to increase the overall contract price by a set amount of contingency that may only be used by the contractor when specified events occur. If the contingency is not fully used during the project, the savings are typically split by the contractor and owner. By including new tariffs as an allowable contingency event in the contract, the parties can cover the risk of tariffs by allocating money that may be used to pay for those tariffs, but also allow for a scenario where no new tariffs are issued during the project and the contingency can be split between the parties. This approach allocates some risk to both parties. The owner will always pay some amount for the contractor’s contingency (even if the owner gets part of the contingency back as a savings), but the contractor risks being liable for any amounts in excess of the contingency.

Changes Clauses

Virtually every construction contract contains a clause authorizing an increase in the contract price or time when certain changes occur. While a new tariff would not typically be considered a change in the work, the parties could agree at the time of contracting to agree that a new tariff is considered a compensable change. This is particularly true where tariffs could decrease overseas production, thus increasing shipping times and delaying completion of the project. While including tariffs as a compensable change puts the risk of tariffs primarily on the owner, a contractor will need to satisfy specified procedural and substantive steps to claim an increase in the contract price or time as a result of the change.

Tax and “Applicable Law” Clauses

Many contracts also include clauses related to who is responsible for certain taxes on the job. If these clauses are broad enough to include tariffs, and provide some guidance as to taxes enacted at the time of contracting, as compared to taxes enacted after contracting, such a clause may provide an avenue for relief to a contractor (or, conversely, provide the owner with leverage to push back on absorbing such costs).

Similar to tax clauses, most contracts include a clause stating that a contractor is responsible for complying with “applicable laws” in its performance of the work. “Applicable laws” may be defined as laws in effect at the time of contracting, or laws in effect during performance of the work. Depending on the definition of “applicable laws,” an argument could be made that a contractor is or is not responsible for the costs of tariffs enacted after contracting.

Termination Clauses

Finally, the contract termination provisions, while likely not affording either party additional costs, may allow for termination of the contract without penalty as a result of tariffs. While this is a more extreme election, a party may decide that the cost impacts of a tariff are so significant that it warrants such action. The right to terminate for convenience is most commonly held by the owner who may decide that moving forward with the project in light of tariffs is too big of a risk to, for example, financing obligations. Contractors less frequently have the right to terminate a contract for convenience. However, in agreements where the contractor has such a right to terminate for convenience, but lacks a clear ability to recover for increased tariff costs, the contractor might decide it is more advantageous to cut its losses than continue work and incur potentially unrecoverable costs.

Conclusion

Tariffs are here to stay, at least in the short term. While this is likely to lead to price uncertainty on projects, this uncertainty can be addressed in contract negotiations. Whether a project is underway or terms are still being negotiated, developers and contractors alike should consult with their counsel on how best to protect themselves as we once again navigate a “new normal” in the construction industry.

[1] Trump’s Tariffs Get a Legal Challenge, Wall St. J., available online at https://www.wsj.com/opinion/trump-tariffs-lawsuit-ieepa-simplified-supreme-court-83cd70f9 (Apr. 4, 2025).

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Towfiqu barbhuiya, Unsplash

The construction industry’s reliance on digital data and devices has reshaped the construction process. When used properly, digital technology facilitates collaboration and increases productivity. However, growing dependence on digital innovation has also rendered construction companies a prime target for cybercriminals. The stark, inescapable reality is that the construction industry has been experiencing an alarming increase in cyber attacks over the last five years. Construction companies should mitigate the risk of cyber attacks by formulating a comprehensive plan that addresses the reasons why the construction industry is particularly susceptible to cyber attacks, anticipates methods used by cybercriminals, and proactively implements effective risk-mitigation tactics.

Why Is The Construction Industry Uniquely Vulnerable To Cyber Attacks?

In recent years, the construction industry has become one of the most frequently targeted industries by cybercriminals.  One analyst found that cyber attacks on construction companies doubled from 2023 to 2024.[1] Between 2023 and 2024, phishing and ransomware attacks on construction companies increased by 83% and 41%, respectively. [2] Construction companies are attractive targets of cybercriminals for many reasons, such as:

Lack of Proper Training: Construction companies traditionally focus on mitigating their many commercial and legal risks.  This has led many of them to neglect cybersecurity training, rendering the workforce susceptible to phishing and other cyber scams.

Frequent Changes in Personnel: Construction’s high rate of labor turnover compared to other industries exacerbates gaps in cybersecurity training and creates a perception that the benefits of training and awareness are fleeting.

Networks Of Project Participants: The network of diverse project participants (design professionals, contractors, subcontractors, suppliers, sureties, owner representatives) gives cybercriminals an array of access points to project data and can make it difficult to reliably manage data security within the network.

The Nature of the Data: Construction companies possess valuable and confidential data such as financial records, payment details, banking credentials, and payroll information, as well as proprietary design documents and bid data.

Time-Sensitive Decision Making: When “time is of the essence,” as it always is in construction, industry participants may prioritize speed over security, which can render cyber risk a secondary concern or an afterthought.

Outdated Software and Systems: Many contractors use legacy software and IT systems that are not regularly (or cannot be) updated with software and operating systems that prevent exploitation of cyber defenses, i.e., security patches.

Inadequate Cybersecurity Budgets: Smaller construction companies, and even some larger outfits, view investments in cybersecurity as unnecessary deductions from their bottom line.

Focus on Physical Safety: The traditional “security” concerns of contractors include compliance with OSHA, protection of materials and equipment, and securing the job site against workplace injuries, which can sometimes blind contractors to intangible cyber threats. 

Regulatory Compliance Challenges: The construction industry must navigate cybersecurity regulations regarding, for example, confidential employee data, which vary by jurisdiction, change over time, and often impose harsh penalties for noncompliance.

How Do Cybercriminals Attack Construction Companies?

Cyber attacks are often perpetrated by sophisticated criminal organizations whose primary targets are construction companies. These well-funded organizations typically employ a team of cybercriminals that includes researchers, software engineers, and operational planners. Recent high-profile cyber attacks on construction companies include a $9 million ransomware attack on a Canadian contractor and another on a Chicago-based contractor that adversely impacted more than 1,000 people. The good news is the methods employed by these organizations are well known within the cybersecurity community:

Phishing attacks occur when fraudulent emails from accounts posing as known entities mislead employees into revealing sensitive information. For example, mimicking an email from an equipment supplier could induce an employee to share financial information with a cybercriminal.

The term “social engineering” refers to a situation where an individual is psychologically manipulated into divulging confidential company information or unwittingly forfeiting control of an entire operating system. For example, an attacker convinces a contractor to misdirect a payment because the attacker successfully impersonated a vendor’s accountant in a plea to make whole on accounts receivable.

Ransomware attacks are one of the most common and successful forms of cyber attacks on the construction industry. In a ransomware attack, the construction company is forced to make a substantial payment to access data locked down by malicious software that a cybercriminal installed in the contractor’s IT system. For example, a contractor pays a significant ransom because its project managers’ inability to access the project drawings threatens to delay the project and expose the contractor to liquidated damages.

Malware attacks involve the use of malicious software to infiltrate IT systems, steal data, or disrupt operations. Such attacks are similar to ransomware attacks, the primary differences being that the victim often has no knowledge of the attack until being notified by affected third parties such as banks or employees, and the attacker has no intent to return the stolen data to the victim. For example, the cybercriminal sells sensitive financial data that it obtained from a project manager who downloaded malware disguised as legitimate software. 

Fraudulent invoices are deceptive bills that trick organizations into making unauthorized payments. For example, a hacker uses an email address similar to supplier’s email address to deliver a false invoice that mimics the supplier’s invoices.

Which Risk-Mitigation Tactics Enhance Cyber Security?

As cyber attacks on construction companies escalate, it is imperative that construction companies proactively safeguard their operations.  Implementing the following tactics will help mitigate the risk that a cyber attack will be successful:

Cyber Education: Comprehensive cybersecurity training with regular updates is one of the most effective ways to mitigate cyber risk.  Educated staff are far less likely to fall victim to cyber scams.  Many companies offer cybersecurity training that can be tailored to a company’s specific needs, including KnowBe4, SANS Institute, and the Center for Information Security Awareness.

Routine Risk Assessments: Cyber risk assessments and ongoing evaluations of cybersecurity protocols enable companies to continually improve their cybersecurity defenses.

Cybersecurity Technology: Antivirus, anti-malware, intrusion-detection, and data-encryption software protect sensitive data by preventing data breaches. 

Data Backup and Recovery: Reliable, frequent, and secure data backup protocols expedite the recovery of data after a cyber attack.

Multi-Factor Authentication: MFA enhances the security of a username/password with additional verification factors such as a one-time passcode sent via text or email.

Software Updates: Mandating the prompt installation of software updates with the latest security patches eliminates known vulnerabilities that cybercriminals exploit.

Contractual Call-Back Requirements: Requiring verbal verification of wiring instructions prior to any and all payments prevents fraudulent wire transfers.

Incident Response Plan: IRPs document processes and procedures that manage how a company responds to a cyber attack.  The primary goal of an IRP is to reduce the time it takes to identify, contain, and remediate an attack.

Cybersecurity Experts: Cybersecurity professionals tailor cybersecurity measures to a company’s unique digital environment. 

Cyber Insurance: Cyber insurance policies protect against the costs and fees associated with cyber breaches.  The financial impact of a successful attack includes costs to retain forensic investigators and legal counsel, absorb business interruption losses, comply with statutory notification and credit-monitoring requirements, and/or make a ransom payment if the attack involves ransomware. 

Contractual Limitations of Liability: Robust limitations of liability in a contract can, for example, cap or shift liability for cyber attack damages.

Indemnity Agreements: Carefully review indemnity clauses to determine who bears responsibility for securing data and managing cybersecurity losses. 

Conclusion

While cyber risks in the construction industry are substantial, they are not insurmountable.  The key is to be proactive by implementing as many cyber risk-mitigation tactics as possible, as soon as possible. With proper planning, training, technology, and risk management, even a traditionally analog industry like construction can build a strong defense against digital threats. Mitigating those threats will ensure business continuity, protect the valuable data and IT systems that drive modern construction projects, and help ensure projects are completed on time and on budget.

[1] Iacono, Laurie, et al., Q1 2024 Threat Landscape Report: Insider Threat and Phishing Evolve Under AI Auspices, Cyber Threat Intelligence Reports (May 22, 2024), available online at:  https://www.kroll.com/en/insights/publications/cyber/threat-intelligence-reports/q1-2024-threat-landscape-report-insider-threat-phishing-evolve-under-ai

[2] Dilgen, John, Report Shows Ransomware Has Grown 41% for Construction Industry, Reliaquest (Nov. 12, 2024), available online at: https://www.reliaquest.com/blog/report-shows-ransomware-has-grown-41-for-construction-industry/

We are thrilled to share that Seyfarth’s Construction and Government Contracts practices were chosen by Law360 as 2024 Practice Groups of the Year. This special recognition spotlights the attorney teams “behind litigation wins and major deals that resonated throughout the legal industry this past year.”

Law360 will be publishing profiles of the practices in the near future.

On Wednesday, December 11th, Seyfarth attorneys Steve Kmieciak and Sara Beiro Farabow will present the third installment of a series of micro-webinars focused on key legal perspectives and considerations for those operating in the hospitality industry. This session will address key considerations for adapting construction forms for international hospitality renovations, including whether to modify or draft new contracts, navigating local laws and practices, working with local counsel, and crafting effective dispute resolution provisions.

Click here for more information and to register.

On Thursday, December 19th, Seyfarth Construction partner, Brenda Radmacher, will be a key presenter at NBI’s Mediation Masterclass for Attorneys. This full day program provides an in-depth course on improving your mediation skills. Attendees will learn proven strategies for client preparation, negotiation tactics, and crafting ironclad mediation agreements. Become a stronger advocate for your clients and a champion of successful dispute resolution. Both in house attorneys and outside counsel will benefit from this masterclass.

Brenda’s session will cover the “Mechanics of Mediation” and will provide invaluable insights and practical strategies to help attendees effectively prepare for and execute effective tools in the mediation process including strategies on mediator selection, effective preparation for mediation, the use of technology and other mediation logistics, and getting a handle on and understanding the mediator’s process.

Click here for more information and to register.

Brenda Radmacher, partner in Seyfarth’s Construction group, will present and moderate panels at the 38thAnnual Construction Super Conference 2024 on December 9-11. The conference is recognized as the preeminent construction conference developed for mid to senior-level professionals working in legal and commercial construction markets.

Panel – Looking Around Corners: Emerging Trends and Proactive Solutions
Brenda will co-present a panel on innovative ways to engage experts in construction disputes, focusing on early expert involvement to aid in risk management, issue analysis, mitigation, and documentation for potential litigation.

Panel – Top 10 Issues to Address in Your ADR Process for a Better Solution in Construction Disputes
Brenda will also moderate this insightful panel, exploring how ADR methods can be used creatively for better outcomes in mediation and arbitration. Topics include early resolution possibilities, preparation for mediation, expert involvement, and combining mediation with arbitration for optimal results.

Click here for more information about the conference.