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.
Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions
May 12, 2026 —
David Adelstein - Florida Construction Legal UpdatesContract drafting and interpretation matters.
A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case
here where the appellate court reversed based on the prefatory language.
But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:
Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Modular Construction’s Big Boom: New Risks Outpacing Standard Contracts in Industrial Projects
March 24, 2026 —
Chad Theriot & Jack Mayo - Construction ExecutiveModular construction is revolutionizing the construction industry, tackling labor shortages, sustainability goals and supply-chain challenges, with the global market for modular and prefabricated construction projected to reach over $200 billion by 2030. While residential builders have embraced modular’s speed and affordability, the greatest risks—and opportunities—are emerging in the industrial sector, where project scale and complexity demand new legal strategies.
In 2023, Chad Theriot explored industrial and infrastructure applications of modular construction, addressing risks like offsite fabrication and integration complexities in his article, “
The Rise of Modular Construction—Impacts for Consideration.” Since that time, modular construction has continued to experience significant advancements and has been increasingly adopted by contractors across a broad spectrum of industrial and commercial projects. As modular construction continues to reshape the industrial landscape, contractors and owners alike must be mindful of the legal implications associated with its use, specifically as it relates to liability and risk allocation, regulatory compliance, quality control and upstream factors such as transportation and intellectual property concerns.
Reprinted courtesy of
Chad Theriot and Jack Mayo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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A Permitting Base Checklist for Data Centers and Power Plants
June 02, 2026 —
Michael S. McDonough, Stephen J. Humes & Stacey C. Wright - Gravel2Gavel Construction & Real Estate Law BlogThere is a lot of talk these days about “license to operate” for data centers, meaning management of the relationships with stakeholders and broader communities concerning both the benefits and adverse consequences of locating a facility in a particular locale. Here, we are speaking of “license to operate” more literally—namely, the legal and regulatory permitting and approval requirements for a privately owned data center whether by itself or colocated with a power generating plant.
Our Base Checklist includes generally and potentially applicable permitting requirements for development and operation, using California as an example. (Taking legal authority Frank Sinatra out of context, “If you can make it there, you can make it anywhere.”) The actual requirements for a given facility would depend, in part, on local law, including planning and zoning laws and plans, and the environment of the site. Just as examples, additional permitting and mitigation requirements might apply if sensitive receptors are located nearby (e.g., noise mitigation for residential dwellings), if sensitive and protected biological resources (e.g., jurisdictional waters and/or protected species) would be impacted, or if the present or former land uses require additional measures (e.g., hazardous materials remediation, mitigation for conversion of prime farmland, or protection of cultural resources). The scope of permit requirements would ultimately be determined by the applicable regulatory agencies and by the lead and responsible agencies under the applicable state environmental land use regime—in our reference case here, the California Environmental Quality Act (CEQA).
Reprinted courtesy of
Michael S. McDonough, Pillsbury,
Stephen J. Humes, Pillsbury and
Stacey C. Wright, Pillsbury
Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. Wright may be contacted at stephen.humes@pillsburylaw.com
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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
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Turning Expert Services into Products
July 20, 2026 —
Aarni Heiskanen - AEC BusinessA Finnish engineering, architecture, and project consulting company, AINS Group, recently opened an online store to purchase fixed-price services. The store presents specialist work in a product-like format, with fixed service names, defined scopes, and visible prices, such as a building history report, a zoning plan cost analysis, and a technical preliminary survey for a property transaction.
Is this productization a smart move or a sign that expert services are being commoditized?
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
White and Williams LLP Ranked in the Chambers USA 2026 Guide
June 15, 2026 —
White and Williams LLPWhite and Williams LLP is proud to celebrate the Chambers USA 2026 Guide which has ranked several of the Firm's attorneys and practice groups, underscoring the Firm's overall commitment to providing client service excellence.
The Chambers USA 2026 Guide recognized attorneys Tim Davis, Managing Partner, and Nancy Frantz, Chair of the Real Estate Group, for Real Estate: Finance in the state of Pennsylvania. Randy Maniloff, Partner, Patricia Santelle, Chair Emeritus/Former Managing Partner, and Robert Walsh, Partner were ranked for Insurance in Pennsylvania, and Thomas Pinney, Partner, was ranked in Pennsylvania for Bankruptcy/Restructuring. In the state of Maryland, Partners David Gilliss and Eric Korphage were recognized for their work in Construction.
Read the full story...Reprinted courtesy of
White and Williams LLP
The Most Expensive Signature to Not Get: Why Change Orders Matter
August 16, 2026 —
Kathryne E. Baldwin - Wilke FleuryGeorge Bernard Shaw has a quote we use a lot in my family: “The single biggest problem in communication is the illusion that it has taken place.” This is pertinent to contractors and homeowners alike because the cost of failing to get proper signatures on documents like construction contracts, and particularly, change orders, is heavy. Both contractors and homeowners are in the same boat as far as wanting to complete a job as swiftly as possible: contractors go on to their next job and homeowners can return to peace in their home. This is prime territory for either party to suggest the work be completed today and the contract or change order executed tomorrow, or even later. However, without a contract, there is no memorialization of the communication between the parties, which can lead to confusion and missed expectations on both sides.
Construction plans are rarely as neat and tidy as they originally seem to be. A contractor may uncover unforeseen conditions, an owner may request additional work or changes that require additional work, or weather interferes with project schedules or the work itself. Unfortunately, the signature that never gets collected can become one of the most expensive omissions on a project – for both sides.
Read the full story...Reprinted courtesy of
Kathryne E. Baldwin, Wilke FleuryMs. Baldwin may be contacted at
kbaldwin@wilkefleury.com
