Construction remains one of the last industries where the product is truly handmade. Even in an age of automation, buildings are assembled by dozens and dozens of trades coordinating on-site—often under immense pressure. When teams are aligned, it’s an orchestra. When they’re not, it’s a lawsuit waiting to be filed.
As a partner at Stoel Rives LLP and a veteran of more than thirty years in construction law, I’ve spent my career advising developers, owners, and contractors across multiple states, primarily in California, Nevada, and Idaho. With a wealth of experience in both litigation and transactional work, I’ve seen where projects go wrong—and, more importantly, how they can go right.
Recognizing—and Mitigating—Common Failure Points
Most disputes are not a surprise. They follow patterns: unclear scopes, bad contracts, unreasonable timelines, insurance mismatches, jurisdictional missteps, and coordination failures. While some risks are inherent, the majority can be minimized through early evaluation, legal involvement, and cross-team alignment.
A proactive “dirt to done” approach begins with understanding the physical site and design, and permitting environment, and extends to structuring contracts, ensuring diligence by field teams, and anticipating failure points, which are common. For example, considering micro-climate impacts on the siting, source of materials and logistics, or scope gap verifications early in the process, common coordination issues may be mitigated or avoided. Also, by evaluating insurance terms and understanding exclusions at the outset (and verifying the correct compliance), clients avoid disputes over coverage that arise only after a claim is made. It’s easier—and substantially cheaper—to ask the hard questions early.
The Disappearance of the Master Builder
Over the last 20 years, I’ve observed a decline in one of the construction industry’s most valuable assets: institutional skilled memory. “Master builders” used to manage both paper and fieldwork, leading teams they’d worked with for years – built up knowledge from lessons learned, not just paper knowledge. The Great Recession in 2008 accelerated retirements, disrupted continuity across trades, and exposed a critical vulnerability: without deliberate efforts to preserve and transfer knowledge/training, the industry increases the risks of repeating costly mistakes.
That loss is more than nostalgic. It has real-world consequences. As teams rotate more frequently and relationships fragment, projects and builders/trade relationships lose the benefit of long-term coordination. Some developers and general contractors, seeking marginal cost savings, end up substantially increasing risk and reducing quality by favoring the lowest bidder over the more or most experienced trade.
This trend isn’t irreversible. Several clients are investing in field training, collaborating with vocational programs, and re-engineering their construction processes to improve efficiency and quality (internal QA/QC programs of substance). In some cases, these changes shave months off project delivery and significant sums in costs (i.e., insurance, call-backs, warranty work, schedules).
Green Building, Microclimates, and New Liabilities
Modern construction isn’t just about structure; it’s about performance. With increasingly stringent energy codes and sustainability mandates, design decisions must account for site-specific variables like microclimates, soil conditions, vapor barriers, energy efficiencies, and unproven interactions. I’ve handled claims where buildings were constructed “to code,” but failed due to unanticipated interactions between materials or environmental factors. In some instances, the issue wasn’t faulty workmanship—it was incompatible materials performing differently based on solar exposure or humidity levels. Sustainability requires integration, and code compliance doesn’t equal immunity from liability or litigation.
How Strong Teams Reduce Legal Risk
Early, collaborative project team formation—ideally including legal counsel, architects, contractors, and key subcontractors—often improves communication and can help mitigate risk. Some of the most successful projects on which I've advised involved pre-construction meetings focused not only on schedule, but also on aligning expectations and roles from top to bottom.
This includes implementing robust internal quality control—separate from municipal inspections or third-party reviews. I recall a client who empowered an internal QC manager to halt work temporarily to fix an issue others wanted to overlook. That pause and early remedy prevented a costly defect claim years later.
If you don't look up, with your head in the field of vision, as well as what the common claims are, you will be falsely surprised by what you later discover. This is especially true in construction, where latent defects and warranty exposures can and do emerge long after occupancy.
Rebuilding Relationships in a Mobile Industry
In earlier decades, general contractors and tradespeople often worked together repeatedly, forming long-term bonds and deep professional and financial trust. Today’s mobile businesses, including the workforce—and focus on quarterly financials—makes that model more difficult. In my experience, stable trained teams deliver better quality, fewer claims, and lower lifecycle costs. It’s not just the structure you’re building—it’s the process. If the foundation of your team is unstable, the building might be too.
Key Takeaways
- Legal risk in construction is often predictable and preventable with proactive planning.
- Institutional knowledge is eroding; clients should invest in workforce training and retention.
- Sustainability mandates require climate-aware design and integration, not just code compliance.
- Strong project teams and early legal coordination are critical to avoiding and mitigating downstream claims.
- Relationship continuity across projects improves efficiency, reduces liability, and builds long-term value.
Want more?
Watch the full interview.
In this interview, Tami Boeck explores labor disruption, shifting risk trends, the evolving dynamics of modern project delivery—and how proactive legal strategy can improve outcomes across the board.
