New year, new legal updates

By Emma Peterson. 

Trent Cotney breaks down the legal changes and predictions from January 2026.  

Everyone is hitting the ground running this year, and that includes legal institutions and structures! It is important to make sure you are staying up to date on all the changes that are happening, which is why the Cotney Briefs are such a powerful resource. Written by Trent Cotney, a partner with Adams and Reese, the briefs cover the most important legal news contractors need to know about. For the first month of 2026, Trent covered the latest legal updates industry professionals should know about.  

1 – California contract requirements tighten 

California’s AB 1327 (Aguiar-Curry) has added a new consumer protection requirement in relation to home improvement contracts. Contractors now must include “a valid email address in the contract and allow homeowners to cancel the agreement via email.” Failure to do so can lead to issues with the Contractors State License Board (CSLB). 

What this means for contractors: If you operate in the state of California, you should immediately update your contract templates to be compliant with this requirement. You should also ensure that your company’s internal processes can accept and track cancellations that are sent electronically. 

2 – Reduction of construction attorney fees in a Florida court 

The Nova Southeastern University, Inc. v. Garratt-Callahan Co. case centered on a dispute “over biological growth and performance issues in its chilled-water/ice-tank system.” When settlements were made with two out of the three defendants in the case, NSU sought to recover the construction attorney fees for all three under the argument that the claims were “inextricably intertwined.” The court only affirmed a return of 15% of the fees sought, as they determined that the claims were not “inextricably intertwined.” 

What this means for contractors: Winning your case does not guarantee the recovery of attorney fees. In this case, the court rejected the plaintiff’s request for all fees recovered due to “the claims against the settling defendants [being related to work] performed different services, at different times, under different scopes of work, and without a common core of facts.” 

3 – Defining contractual boundaries 

It is common for contractors to be asked to review design plans and offer feedback to the designer. However, this is leading to contractors “increasingly being pulled into claims alleging design defects, code violations or professional negligence based on informal input provided during the construction process.” 

What this means for contractors: To avoid any liability, it is key to include a provision in your contract that makes it clear you are not providing professional design services. Trent recommends including a statement similar to the following in your contracts to prevent such situations: 

Contractor is not a licensed architect or professional engineer and does not provide architectural or engineering services. Any plans, specifications, drawings, details, recommendations, shop drawing or suggestions provided by Contractor are offered solely for the purpose of facilitating construction and are not intended as professional design services. Responsibility for the adequacy, accuracy and code compliance of all design documents rests exclusively with the project owner and/or the owner’s licensed design professionals. Contractor shall not be responsible for errors, omissions or deficiencies in the plans, specifications or other design documents provided to Contractor. 

4 – An expanding global market 

As Venezuela and Cuba re-engage with the global market, opportunities for international work will begin to appear. Trent predicts that there will be two waves to the work that will emerge:  

1. Pre-existing structural repair: The first wave will likely prioritize repairing what is already there. He shared, “Decades of deferred maintenance have taken a toll on housing stock, industrial facilities, ports, hospitals, schools and energy-adjacent infrastructure. Roofs leak. Mechanical systems fail. Water intrusion and corrosion are widespread.” 
2. Foreign-backed projects: The next wave will be more focused on new construction. Trent predicted, “Early capital is more likely to flow through joint ventures, multinational developers, NGOs, energy companies or government-adjacent entities operating with foreign financing.” 

What this means for contractors: The markets in Venezuela and Cuba are long-term opportunities for contractors who position themselves correctly today. Right now, the focus for contractors should be on relationship-building and preparation for operation in imperfect conditions (remote sites, supply struggles, evolving regulations, etc.). 

Read the entire brief from January and more online.