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.
Snell & Wilmer’s San Diego Office Ranked #1 “Best Place to Work” by the San Diego Business Journal
September 01, 2026 —
Snell & WilmerSAN DIEGO – Snell & Wilmer is proud to announce that its San Diego office has been named the
#1 Best Place to Work in the Large Business category by the San Diego Business Journal as part of its
2026 Best Places to Work awards. The annual recognition honors outstanding employers across the San Diego region that are setting the standard for workplace culture and employee engagement. Rankings are based on confidential employee surveys conducted by Workforce Research Group, which evaluate organizations on leadership, corporate culture, communication, employee engagement, and other key workplace factors.
“Being recognized as the #1 Best Place to Work in the Large Business category is an incredible honor because it reflects the experiences and feedback of our own team,” said
Bardia Moayedi, managing partner of Snell & Wilmer’s San Diego office. “Our people are the foundation of everything we do, and this recognition speaks to the collaborative, inclusive, and supportive culture they have helped create. I am grateful to every member of our San Diego office for making this an exceptional place to build a career, serve our clients, and give back to our community.”
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Snell & Wilmer
Tony Sonnett Secures Highly Favorable Verdict for Client in Admitted Liability Case in Which Plaintiff Sought $34.5M
September 29, 2026 —
Lewis BrisboisLos Angeles Partner Tony Sonnett recently obtained a highly favorable verdict for his property owner client in an admitted liability case in which the plaintiff had asked for $34.5 million, with a jury awarding just $75,000.
The plaintiff, who was a tenant at one of the client’s rental properties, was injured in October 2020 as he was attempting to close the heavy metal blinds that were affixed to the 12-foot floor-to-ceiling windows of the property. The blinds and their heavy metal covering detached from the wall and fell on the plaintiff’s head, causing him to suffer a scalp laceration that required stitches.
Read the full story...Reprinted courtesy of
Lewis Brisbois
Contractor Dispute Resolution Framework and Prevention
July 06, 2026 —
Construction ExecutiveWHAT DEFINES A CONTRACTOR DISPUTE RESOLUTION FRAMEWORK
A contractor dispute resolution framework is a structured system of contractual terms, governance processes and escalation pathways designed to prevent, manage and resolve conflicts between contracting parties with minimal disruption to cost, schedule and performance.
The framework operates as both a preventive control and a corrective mechanism. Preventive elements establish clarity in scope, expectations and accountability before work begins. Corrective elements define how disagreements are identified, documented, escalated and resolved once they arise.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Potential Gap in Workers Compensation Immunity Statutory Framework
June 02, 2026 —
David Adelstein - Florida Construction Legal UpdatesWorkers compensation insurance is important. As an owner, you want to ensure the contractors you hire have workers compensation insurance. Assuming you hire a contractor that is statutorily exempt from workers compensation, you want to make sure, no exception, that any subcontractor that is hired has workers compensation insurance. (Regardless, you always want subcontractors to have workers compensation insurance.). In construction, the prime contractor serves as the “
statutory employer” for purposes of workers compensation insurance.
With workers compensation comes
workers compensation immunity.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
4th Department Narrowly Interprets Professional Services
August 11, 2026 —
Craig Rokuson - Traub LiebermanIn the recent case of Cty. of Erie v. Selective Ins. Co. of Am., 2026 NY Slip Op 04092 (App. Div. 4th Dept.), New York’s Appellate Division, Fourth Department held that a general liability carrier for a construction manager owed additional insured coverage to the County of Erie, notwithstanding an exclusion in the construction manager’s policy for injuries arising out of professional services.
The underlying case involved injuries sustained when the underlying plaintiff fell off of her bicycle at a park owned by the County when she transitioned from the pavement edge to grass.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
The Firm Turns 16!
July 20, 2026 —
Christopher G. Hill - Construction Law MusingsI have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks the 16th anniversary of
my first day as a solo practitioner of construction law at
The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 16 years without the support of the best wife and family that any construction lawyer could want.
Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) has graduated from N. C. State University with a fisheries and wildlife biology degree and is currently in Casper, Wyoming working for
Wyoming Game & Fish, my second oldest is an assistant director of admissions at
Appalachian State University in Boone, NC, and has celebrated his second wedding anniversary, and my oldest has celebrated her fifth marriage anniversary. Our home in Captiva, Florida continues its recovery from from Hurricane Ian and subsequent hurricanes.
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The Law Office of Christopher G. Hill
Miller Act Payment Bond Claim “No Nos!”
October 06, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent federal district court opinion, Sauer Construction, LLC v. United Structures of Georgia, LLC, 2026 WL 2522849 (M.D.Fla. 2026), addressed two worthy considerations when it comes to a Miller Act payment bond claim. And, when I am talking about considerations, I am really talking about “no-nos.” These are things you don’t do.
First, don’t file an untimely Miller Act payment bond lawsuit. Make sure, as a claimant, you file that lawsuit within one year from your final furnishing. In this case, the subcontractor claimant did not and tried to argue around the statute of limitations with an equitable tolling argument, i.e., that the statute of limitations should be equitably tolled to accommodate the late filing of the lawsuit. Guess what? The subcontractor was not successful. You are fighting an uphill (losing) battle when arguing equitable tolling because “traditional equitable tolling principles require that the claimant demonstrate extraordinary circumstances, such as fraud, misinformation, or deliberate concealment.” Sauer Construction, supra. This means you need ultra-persuasive evidence to support such equitable tolling principles. Actually, having this evidence is doubtful. Thus, timely file the Miller Act payment bond lawsuit. There is no legitimate reason not to.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
