California: A Construction Overview, Published by Chambers and Partners USA

In an In-Depth Overview published by Chambers and Partners USA as part of its 2026 guide, Segal McCambridge Los Angeles Shareholders Richard Glucksman and Daniel Cribbs examine significant trends and developments affecting California’s construction industry. Their analysis explores the impact of catastrophic wildfires, the rapid expansion of data centers and the options available for resolving construction disputes.

“In an industry that responds to natural conditions and disasters, such as fires, and evolves with innovative projects, such as data centers, construction requires careful balancing of consumers, builders and legislators,” the authors explain.

Richard and Daniel discuss how reconstruction following the Palisades and Eaton fires has increased demand for skilled labor and materials while new permitting processes, fire-resistant construction requirements and other regulatory changes affect the cost and availability of construction and insurance. They also examine the distinct risks associated with data center projects, including water intrusion, construction delays, cooling-system failures and growing demands on California’s water and energy resources.

“With increasing litigation and social discontent around data centers, the continued expansion of ‘AI infrastructure’ will require a careful balance between technological innovation, resource constraints, community impact and legal oversight,” they write.

The overview also outlines the differences among civil litigation, arbitration, judicial reference and mediation when construction defects, delays and other claims arise.

Read the In-Depth Overview in full, click here.