The October 2025 Cotney Brief

By Emma Peterson. 

Stay up to date with roofing legal updates from the past month! 

If you haven’t heard about the Cotney Briefs, they are a powerful resource that keeps contractors up to date and informed about the legal side of the roofing industry. Written by Trent Cotney, a partner with Adams and Reese, these briefs cover everything from state permit changes to federal policies about tariffs and immigration. Here’s a look at what Trent wrote about in his October 2025 brief. 

1 – New DOT Rule 

The Department of Transportation (DOT)’s Interim Final Rule (IFR) took effect on October 3, 2025. This IFR removes “race/sex presumptions from DBE/ACDBE eligibility” and calls for immediate reevaluation of Unified Certification Programs (UCP)’s DBEs/ACDBEs. 

What this means for contractors: If you do work funded by DOT (such as road facilities, transport depots, etc.) expect to see a pause on project-specific DBE goals as UCP reevaluates. In general, contractors should proceed with caution on bids tied to DBE participation goals as certifications are currently up in the air.  

2 – California courts bars recovery  

The California Court of Appeal affirmed the dismissal of a subcontractor’s suit in American Building Innovations v. Balfour Beatty Construction. The dismissal came from the court’s conclusion that “the subcontractor’s license suspension triggered by a lapse in workers’ compensation insurance barred it from recovering under Business & Professions Code § 7031.” 

What this means for contractors: The big takeaway of this case is the importance of maintaining proper licensing and insurance coverage. If these are not maintained, contractors face many risks including being “barred from recovery (and exposed to fee awards) if they fail to meet strict statutory requirements.” 

3 – Forum selection clause  

A forum selection clause specifies the state, county or court where any disputes are to be resolved. This is important to include as it defines where litigation will occur. Without it, contractors risk getting taken to court in other states or jurisdictions, which can dramatically increase the costs and complexities of the case. 

What this means for contractors: Including a forum selection clause is a powerful way to reduce uncertainty and discourage frivolous claims. Trent shared this example of what this might look like:  

“Forum Selection and Governing Law  

This Agreement shall be governed by and construed in accordance with the laws of the State of [Your State], without regard to its conflict-of-law principles. Any claim, dispute, or cause of action arising out of or relating to this Agreement, the Project, or the performance of the Work shall be brought exclusively in the state or federal courts located in [County and State]. The parties expressly consent to the personal jurisdiction of such courts and waive any objection to venue or inconvenient forum.” 

4 – Builder’s risk insurance  

Builder’s risk insurance is a type of coverage that protects projects during the construction process. Unlike general liability, builder’s risk insurance is a form of first-part property coverage. This means that it “insures against damage to the project itself.” For example, many forms of builder’s risk insurance will cover the structure, materials, fixtures and equipment.  

This is a great resource, but problems have been known to arise when contractors and homeowners misunderstand what is covered in the insurance. Trent gave an example of one of these issues, explaining, “Policies are typically purchased by the owner or general contractor, but subcontractors often assume they are included as insureds. In many cases, however, coverage only extends to those specifically named or who meet the policy’s definition of ‘insured.’” Other misunderstandings like what losses are covered and the period of time of coverage can cause more issues.  

What this means for contractors: Builder’s insurance is a powerful safety net for construction projects, but only if it is understood what is covered. Issues arise when there is unclear language or misunderstandings. The best way to avoid this is by being proactive. Trent recommends contractors “confirm insured status in writing, align contract terms with the policy, and monitor coverage throughout the project.” 

Read Trent's full October brief and check out his other 2025 briefs online!