The Construction Counselor

On April 25, 2025, Governor Kim Reynolds signed into law Senate File 574, which amends Iowa Code Chapter 573 by, among other things, reducing the maximum retainage that may be held by public owners on Iowa public construction projects from 5% to 3%.

As with the prior tariffs, recent changes could lead to higher costs for building materials, supply chain disruptions and challenges in budgeting and project timelines for those in the construction and real estate development industries.

On April 2, 2025, President Donald Trump announced a broad set of new and increased tariffs on imported goods from around the world — including key materials commonly used in construction and real estate development. These changes could lead to higher costs for building materials, supply chain disruptions, and challenges in budgeting and project timelines.

Widespread uncertainty within the construction industry has arisen due to President Trump’s promises to impose tariffs, both before and after his inauguration. If implemented, new tariffs could mean price increases in construction materials, ranging from steel and iron to lumber, electronical components and many others.

On November 22, 2024, the Iowa Supreme Court entered an order on a matter arising from a general contractor’s motion demanding that a public owner release retainage on a construction project prior to final completion of the project, with the Supreme Court denying that contractor’s motion and allowing the public owner to continue withhold retainage.

On October 10, 2024, the Iowa Supreme Court heard oral argument in Charles L. Smith, Trustee in the Bankruptcy of Metro Concrete, Inc. v. Des Moines Area Community College and Rochon Corporation of Iowa, Inc. n/k/a Graphite Construction Group, Inc., a case involving retainage rights by owners on public projects. 

When homeowners discover defective construction, it can be difficult to understand and remedy the issues. It can be even more difficult to determine which parties are responsible. The Iowa Court of Appeals recently offered some clarity in Yakel v. Wheeler.

This month, Governor Kim Reynolds signed into law two more laws affecting the construction industries: House File 2581, which makes changes in the notice period and other aspects of the law regarding location of underground utilities; and HF 2388, relating to the regulation of exterior cladding and finish materials used on residential buildings.

As those in the construction industry know, Iowa Code Chapter 573 governs public projects in Iowa in many aspects, including setting forth the rights and obligations of those involved in public projects in regard to retainage. From time to time, there are disputes in the interplay between the various provisions of this chapter and questions about the balancing of the rights among the various players in the project—the project owner, the general/principal contractor and the subcontractors.

On Wednesday, April 10, 2024, Governor Kim Reynolds approved Senate File 455. This new law limits the ability of cities and counties to regulate topsoil and stormwater on construction sites.

The construction industry continues to face challenges in securing qualified workers for their projects, with some companies turning to staffing agencies and temporary workers to solve this challenge. Companies turning to this solution need to be aware of the unique legal and practical considerations of doing so, as illustrated in the recent Iowa Court of Appeals case of Calabretto Building Group v. Tradesmen International, LLC,.

With the rise in construction projects that are audited, it is important for owners, general contractors and subcontractors of all tiers to understand both the basics and specific concepts regarding construction audits and seek legal counsel as needed.

Effective July 1, 2022, Iowa added an alternative project delivery method to the options available to Iowa public entities–construction manager at risk, also known as CM at risk and CMAR. 

On June 17, 2022, the Iowa Supreme Court rendered a decision in the Borst Brothers Const. v. Finance of America case involving a mechanic’s lien, which addressed one aspect of the pre-lien notice requirement for Iowa subcontractors on residential projects.

Non-disclosure agreements (NDAs) are often part of the discussions my clients have surrounding a potential construction or real estate project to protect the confidential information regarding the project and proprietary information of the parties.

In the last several months, I have heard from many homebuilders and general contractor clients regarding the substantial increases in the cost of lumber and other materials; HBA Iowa reports about an 80 percent increase in lumber costs since mid-April.

On February 7, 2020, the Iowa Supreme Court issued a final decision in Standard Water v. Jones, a long-standing residential mechanic’s lien case stemming back to a 2013 mechanic’s lien.

On February 14, 2020, the Iowa Supreme Court issued decisions in three companion cases involving residential contractor, 33 Carpenters Construction, affirming the Court of Appeals’ decisions against such contractor.