Outer Banks Homes Collapsing Is Just a Taste of What’s to Come
December 22, 2025 —
Mark Gongloff - BloombergOn Sept. 20, 2024, a four-bedroom, three-bathroom beach house in Buxton, North Carolina, in the heart of the Outer Banks, sold for
$580,000. On Oct. 28 this year, the house, known as
Mermaid’s Rest, collapsed
into the ocean. It was one of five homes swallowed that day by high waves churned up by an offshore storm.
Few things demonstrate how climate change is already upending lives and fortunes quite like watching somebody’s stately vacation home topple into the drink. But Outer Banks houses like Mermaid’s Rest (a striking example first dug up by the
New York Times but just one of
many such cases), are mere showroom models for the havoc that rising seas are already threatening.
First, let’s get one caveat out of the way: Barrier islands like the Outer Banks are always changing shape, regardless of the climate. Homes built on the shores of such islands have always been at risk of eventually sliding off the edge like a quarter in one of those coin-pusher arcade games.
Read the full story...Reprinted courtesy of
Mark Gongloff, Bloomberg
Breaking Ground On New California Public Works Prevailing Wage Requirements
April 27, 2026 —
Heather Frisch, Christopher Bouquet & Ashley Stein - The Construction SeytSeyfarth Synopsis: As of January 1, 2026, AB 889 bulldozed California’s Prevailing Wage law, which impacts public works employers—including public agencies, the contractors that work for them, and private owners and developers whose projects may be subject to public works requirements. The amended law reframes the calculation of fringe benefits for individuals who work on public works project and mandates annualization of such benefits, demolishes the practice of frontloading these benefits, and requires employers to maintain inspection-ready records of compliance.
This year, AB 889 significantly revised California’s prevailing wage law, codified at Labor Code section 1773.1, to clarify the state’s prevailing wage regulations and streamline enforcement. Accordingly, as of January 1, 2026, California public works employers are required to annualize employees’ fringe benefits and maintain specific documentation demonstrating statutory compliance. These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements. Continue reading for the blueprint of how to comply with the state’s amended prevailing wage law.
Reprinted courtesy of
Heather Frisch, Seyfarth Shaw LLP,
Christopher Bouquet, Seyfarth Shaw LLP and
Ashley Stein, Seyfarth Shaw LLP
Ms. Frisch may be contacted at hfrisch@seyfarth.com
Mr. Bouquet may be contacted at cbouquet@seyfarth.com
Ms. Stein may be contacted at astein@seyfarth.com
Read the full story...
Lawmakers Vote to Reauthorize Programs to Support Water Quality, Coastal Protection
April 20, 2026 —
Pam McFarland - Engineering News-RecordThe U.S. House of Representatives has passed a package of 14 bills that includes measures to reauthorize several U.S. Environmental Protection Agency programs to protect and restore critical water ecosystems, expand access to broadband, reduce regulatory requirements on airport projects and programs and lower costs of federal buildings.
Read the full story...Reprinted courtesy of
Pam McFarland, Engineering News-RecordMs. McFarland may be contacted at
mcfarlandp@enr.com
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
Don’t Hire Me! (Principle Is Expensive, and Lawsuits Based on Principle Are Even More Expensive)
February 10, 2026 —
Melissa Dewey Brumback - Construction Law in North CarolinaI spend a lot of time trying to convince my clients to NOT hire me. I’m not crazy—let me explain. Litigation is costly. Very costly. And it is time consuming. Don’t get me wrong—I will go to Court and fight just as hard as you want me to, but I want you to know what you are facing before you go down that road.
Now, obviously, if you are the one that is being sued, you have no choice but to defend yourself and your Firm. But if you are considering suing someone else, think long and hard about it before you pull the trigger. There are ways to reduce cost, time, and risk: for example, pre-suit or early mediation, or agreeing to arbitration in lieu of trial. But I always want my clients to know that real law is not like Law & Order. Things take time. A trial is often a year or more away from when you first file the lawsuit. Make your decisions on not just your heart, but your economic brain as well.
Read the full story...Reprinted courtesy of
Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
How to Fireproof a Neighborhood
March 17, 2026 —
Linda Poon - BloombergAs builders in fire-prone areas like California race to
reimagine homes for a more fiery future, one developer is zooming out to build entire fire-resilient neighborhoods.
KB Home’s developments tackle an issue that’s
hard for any individual homeowner to overcome: “You can do your home perfectly, but if your neighbor didn’t, you still have a fire risk,” said Roy Wright, chief executive officer of the research nonprofit Insurance Institute for Business and Home Safety. In other words, to slow the spread of urban fires
it takes a village.
Read the full story...Reprinted courtesy of
Linda Poon, Bloomberg
GRSM Attorneys Named Finalists in 2026 Women, Influence & Power in Law Awards
March 10, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani attorneys have been shortlisted as finalists for Corporate Counsel’s 2026 Women, Influence & Power in Law (WIPL) Awards, which honor women leaders who have demonstrated a commitment to advancing the empowerment of women in the legal profession.
In the Law Firm Internal Collaborative Leadership category, Stephanie Jones was recognized for her exceptional ability to foster collaboration, mentor talent, and align colleagues across GRSM. Jones has consistently demonstrated leadership rooted in trust, inclusion, and shared purpose, qualities that have strengthened the firm during a period of extraordinary growth. Her impact on the firm’s culture and success will continue as she steps into her role as Chief Operating Partner in June 2026, where she will further build on her leadership in fostering teamwork, mentorship, and alignment across the firm’s national platform.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
Contracting Chaos? How Mid-America v. US Department of Transportation is Upending DBE Certifications
December 02, 2025 —
Andrew G. Vicknair - The Dispute ResolverSince the early 1980s, Disadvantaged Business Enterprise (DBE) programs including the one implemented by the US Department of Transportation (DOT) have been in effect. The DBE program began under Title VI of the Civil Rights Act and has been reauthorized by Congress in various bills over the years. Generally, these DBE programs have required that ten percent of federal highway construction funds be paid to small businesses controlled and owned by “socially and economically disadvantaged individuals.” Certain minority and women owned businesses have been given a presumption of disadvantage to facilitate their participation in federally‑assisted DOT contracting. While any person may qualify as socially and economically disadvantaged regardless of their race or gender, certain racial groups and women are rebuttably presumed to be disadvantaged. All other applicants seeking DBE status who are not presumed disadvantaged on the basis of their racial or female status must prove, by a preponderance of the evidence, that they are socially and economically disadvantaged.
Many states have enacted similar requirements governing state and local projects. Recently, the presumption of disadvantaged status has come under attack in Mid‑America Milling Company v. U.S. Department of Transportation[i] pending in the U.S. District Court for the Eastern District of Kentucky. The results of Mid-America represents a drastic change to the DOT’s DBE program for federal DOT contracting.
Read the full story...Reprinted courtesy of
Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
