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.
Construction Liens: Liening for Amounts Not Yet Technically Due Does Not Mean Lien Is Fraudulent
August 11, 2026 —
David Adelstein - Florida Construction Legal UpdatesA 2024 bankruptcy ruling, In re Edgewater Construction Group, Inc., 657 B.R. 668 (S.D.Fla. 2024), touched upon an interesting issue when it comes to construction liens. Is a construction lien fraudulent simply because the lien includes amounts not yet due? Not necessarily.
In this bankruptcy dispute, the subcontractor debtor (that filed for bankruptcy) recorded two construction liens on projects. The general contractor argued in the bankruptcy court that the subcontractor debtor’s liens were fraudulent.
As to the first lien, the general contractor argued that the lien was fraudulent because it included amounts that the debtor knew the general contractor had already paid to the debtor’s subcontractors/suppliers. The bankruptcy court disagreed: “The Court finds that, although the Debtor had been told that [the general contractor] had paid these subcontractors, in light of the ongoing dispute between Debtor and [the general contractor], it was reasonable for the Debtor to demand proof. Debtor’s subsequent filing of a partial satisfaction of lien once the Debtor received the requested proof of payment from [the general contractor] counters any claim of willful exaggeration.” In re Edgewater Construction Group, supra, at 672-673.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law
June 29, 2026 —
Brenda Radmacher - The Construction SeytDaily Journal (California) featured an article by Construction Law partner
Brenda Radmacher, “A new path for construction defects in California.” The piece, published on June 15, 2026, examines Assembly Bill 1903 and its potential to significantly reshape California’s construction defect framework, particularly for common interest properties.
The article highlights how AB 1903 would overhaul the state’s current right-to-repair system by mandating completion of prelitigation procedures, raising requirements for defect claims, strengthening developers’/builders’ rights to repair, and introducing a voluntary “certified building” program. The legislation aims to rebalance competing interests by reducing litigation-driven costs while preserving protections for homeowners.
Read the full story...Reprinted courtesy of
Brenda Radmacher, Seyfarth Shaw LLPMs. Radmacher may be contacted at
bradmacher@seyfarth.com
White and Williams LLP Attorneys Recognized as PA and DE Super Lawyers
July 06, 2026 —
White and Williams LLPWhite and Williams LLP is proud to announce that eight attorneys in the firm’s Philadelphia office and one attorney in the firm's Delaware Office have been recognized on the 2026 Super Lawyers® and Rising Star lists. This recognition highlights our attorney's exceptional legal acumen and their commitment to client service excellence.
Lawyers are selected for inclusion in Pennsylvania and Delaware Area Super Lawyers® and Rising Stars through a process that considers independent research, peer recognition and the professional achievements of attorneys from more than 70 practice areas. Approximately 2.5% of lawyers in each state are selected by the research team at Super Lawyers® to receive this honor.
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White and Williams LLP
Construction Liens and the “Substantial Performance” Doctrine
April 08, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn a recent case dealing with a construction lien, the driving issue was whether the air conditioning contractor “substantially performed” before recording its construction lien against residential property. The importance here pertains to the substantial performance doctrine with respect to construction liens. The Third District Court of Appeal explained, with relevant citations, this doctrine as follows:
Under Florida law, a contractor is entitled to a mechanic’s lien if he complies with all provisions of Chapter 713, governing construction liens, and “has substantially performed the contract.” Grant v. Wester, 679 So. 2d 1301, 1307 (Fla. 1st DCA 1996) (quotation omitted); Langley v. Knowles, 958 So. 2d 1149, 1151 (Fla. 5th DCA 2007) (“The substantial performance doctrine recognizes that a contactor who complies with all of the provisions of the contactor’s lien statute is entitled to enforce a lien if he has substantially, but not completely, performed his contractual obligations.”). Substantial performance is performance “so nearly equivalent to what was bargained for that it would be unreasonable to deny the promisee the full contract price subject to the promisor’s right to recover whatever damages may have been occasioned him by the promisee’s failure to render full performance.” Ocean Ridge Dev. Corp. v. Quality Plastering, Inc., 247 So. 2d 72, 75 (Fla. 4th DCA 1971).
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Surety Requiring Collateral Security Under General Agreement of Indemnity
September 08, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn order to procure bonds (payment and performance bonds), you need to sign a General Agreement of Indemnity (referred to as the “GAI”) with the surety (bonding company). It does not matter the surety issuing the bonds, the terms and conditions in the General Agreement of Indemnity are largely consistent. These terms and conditions are one-sided written in favor of the surety. This is because bonds are not insurance. When a surety issues such bonds, it is doing so under the premise that it will get reimbursed every penny that it incurs relative to its exposure- whether incurred in attorney’s fees, consulting costs, or remediating a default or claim under the applicable bond. The General Agreement of Indemnity is one of the most powerful contracts in construction and is a contract that is not to be taken lightly. It provides the surety numerous rights in the event of a claim.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Ahlers Cressman & Sleight named one of the Top 50 Construction Law Firms
August 11, 2026 —
Ahlers Cressman & Sleight PLLCAhlers Cressman & Sleight PLLC is pleased to announce its fifth consecutive year of recognition by Construction Executive as one of The Top 50 Construction Law Firms.
Since its first publication in 2003, Construction Executive magazine has served as the leading source for news, market developments, and business issues impacting the construction industry. Construction Executive established the rankings by asking over 600 U.S. construction law firms to complete a survey. Constructive Executive’s data collection includes: 2025 revenues from the firm’s construction practice; the number of attorneys in the firm’s construction practice; the percentage of the firm’s total revenues derived from its construction practice; the number of states in which the firm is licensed to practice; the year in which the construction practice was established; and the number of construction industry clients served during the fiscal year 2025.
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Ahlers Cressman & Sleight PLLC
White and Williams LLP Secures Trio of Cyber Coverage Wins
May 12, 2026 —
Gabriel Darwick & Sean Elman - White and Williams LLPThree weeks, three jurisdictions, three cyber wins.
White and Williams picked up the first victory on March 9, 2026, in the United States District Court for the Western District of Texas, where the court granted summary judgment to their client enforcing a Cyber Crime Loss sublimit. See Perry & Perry Builders, Inc. v. Cowbell Cyber and Obsidian Specialty Ins. Co., 2026 U.S. Dist. LEXIS 49409 (E.D. Tex. Mar. 9, 2026). In Perry, the insured was deceived into transferring money intended for a vendor to an unintended third party. The insurer acknowledged that the loss was covered and paid the insured the policy’s Cyber Crime Loss sublimit. Discontent with a single sublimit, the insured argued that because it wired the money to the fraudster in separate transfers, it was entitled to a second Cyber Crime Loss sublimit.
Reprinted courtesy of
Gabriel Darwick, White and Williams LLP and
Sean Elman, White and Williams LLP
Mr. Darwick may be contacted at darwickg@whiteandwilliams.com
Mr. Elman may be contacted at elmans@whiteandwilliams.com
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