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.
Connecticut Expands Construction Wage-Theft Liability and Prevailing Wage Recordkeeping Requirements
June 29, 2026 —
Anand Gupta & Guest Contributor - Construction Law ZoneThis post was co-authored by Labor + Employment group lawyer Christopher Costain, Hayden Eckblom (Summer Intern), and Pasqualina Fox-Mina (Summer Associate). Hayden and Pasqualina are not admitted to practice law.
On May 11, 2026, Connecticut Governor Ned Lamont signed into law Public Act 26-12, a wide-ranging bill centered around employee rights. Our colleagues in Robinson+Cole’s Labor, Employment, Benefits + Immigration group recently published a
legal update summarizing the key components of Public Act 26-12. Here, we focus on the Wage Theft and Prevailing Wage concepts in the bill that directly relate to the construction industry.
Wage Theft
With exceptions for public works and small residential projects, general contractors will be jointly and severally liable for any unpaid wages owed to an employee of a subcontractor of any tier on private construction projects, beginning with contracts entered into on or after January 1, 2027. As we know, there is a separate regime for public works projects involving payment bonds.
Read the full story...Reprinted courtesy of
Anand Gupta, Robinson & Cole LLPMr. Gupta may be contacted at
agupta@rc.com
Urban Digital Twins: How Virtual Cities Could Help Build Smarter Cities
August 11, 2026 —
Gravel2Gavel Construction & Real Estate Law BlogTraffic congestion, endless construction, flooded streets and power outages. For city leaders and residents alike, these disruptions are simply part of daily urban life. But an emerging tool, known as the urban digital twin, could help cities anticipate problems before they occur by allowing planners to simulate responses, stress-test infrastructure, and evaluate decisions before implementing them in the real world.
What Is an Urban Digital Twin?
An
urban digital twin is a dynamic, data-driven virtual model of a real city. It uses AI analytics and combines 3D modeling with real-time data and information from sources such as IoT sensors, traffic cameras, satellite feeds, infrastructure databases, utility networks, and environmental data including weather systems and heat maps to create a continuously updated digital representation of the urban environment that mirrors infrastructure, movement and systems in real time. In other words, it is a living digital replica of a city.
Read the full story...Reprinted courtesy of
Pillsbury
Understanding the EPA’s Latest Proposed Drinking Water Contaminant Monitoring Rule, Published in Law360
September 01, 2026 —
Gordon Rees Scully MansukhaniThe U.S. Environmental Protection Agency’s (EPA) proposed Sixth Unregulated Contaminant Monitoring Rule (UCMR 6) represents another step in the federal government’s ongoing effort to identify and evaluate emerging contaminants in drinking water. The proposal would require certain public water systems to monitor and report on 30 unregulated drinking water contaminants from 2028 through 2030, while generating occurrence data that could inform future regulation and affect environmental, commercial, litigation and risk assessments.
In an article published by Law360, Gordon Rees Scully Mansukhani Senior Counsel, Ayodeji Ayolola, analyzes the scope and practical implications of UCMR 6, including the contaminants selected, the proposed monitoring requirements for public water systems, and the EPA’s continued focus on PFAS and related organofluorine compounds. The article also touches upon the potential significance of publicly available monitoring data for businesses and property stakeholders.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
Predict Risk, Not Incidents: A New Analytics Framework for Your Construction Safety Data
August 03, 2026 —
Tabrez Zahoor - Construction ExecutiveBehind every “zero-incidents” company report, hidden hazards may already be accumulating—
risks that could become serious injuries tomorrow. The question every executive should be asking is not, “Did anything go wrong last month?” It is: “Where is risk building on my projects right now?”
Most construction organizations cannot answer that question. Not because the data does not exist—it does. Every active project generates daily inspection findings, labor records, near-miss reports and audit results. The problem is that standard safety systems collect this data and then report it in ways that make it operationally useless for prevention. They describe the past. They predict nothing.
The predictive safety analytics framework (PSAF) is a practical, deployable system developed from years of applying data science to large-scale construction portfolio operations that takes the safety data construction organizations already collect and transforms it into a forward-looking risk signal. The result? A single weekly score that tells executives where risk is concentrating across their portfolio before anyone gets hurt.
Reprinted courtesy of
Tabrez Zahoor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
We Won’t Permit That Excuse!
June 23, 2026 —
Curt Martin & Richard Eiszner - ConsensusDocsA Texas appellate court recently ruled that a building permit wasn’t a condition precedent for a construction project. That caught our attention. Can you build a commercial project without a permit?
But as we read the case, we see the court’s reasoning. And it reminds us of an important legal principle that should inform our contract drafting and negotiation.
The case was a civil suit brought by the project owner against its tenant improvement contractor for work on a medical spa. The owner claimed that the contractor didn’t perform the work properly and didn’t finish construction. The contractor argued that delays and problems were caused by the owner, alleging numerous failures, including the owner’s failure to secure a building permit.
Reprinted courtesy of
Curt Martin, Peckar & Abramson, P.C. and
Richard Eiszner, Peckar & Abramson, P.C.
Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Eiszner may be contacted at reiszner@pecklaw.com
Read the full story...
Ahlers Cressman & Sleight PLLC Recognized by Best Lawyers 2027
September 28, 2026 —
Ahlers Cressman & Sleight PLLCContinuing the trend from last year, Ahlers Cressman & Sleight PLLC is excited to announce that thirteen members of our firm have received recognition from Best Lawyers® in America for 2027.
The Best Lawyers in America® has been an annual publication since 1983 and focuses on the top legal talent across the United States and the globe. Through its rankings, Best Lawyers® provides a comprehensive guide to legal representation for individuals and businesses alike. Over time, Best Lawyers® has been recognized as one of the leading publications for attorney achievements and references.
Read the full story...Reprinted courtesy of
Ahlers Cressman & Sleight PLLC
Arizona Court of Appeals Clarifies Homeowners Association Open Meeting Requirements
June 29, 2026 —
Jill Casson Owen, Benjamin J. Hawkins & Stephen Wright - Snell & WilmerA Z N H Revocable Trust v. Sunland Springs Village Homeowners Association, No. 1 CA-CV 25-0424 (Ariz. Ct. App. Apr. 28, 2026)
OVERVIEW
The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804. The decision reinforces the legislative policy favoring transparency in association governance, bringing association meeting requirements more in line with the open meeting standards applicable to public bodies under A.R.S. § 38-431 et seq. (Arizona’s Open Meeting Law).
KEY HOLDINGS
1. All Voting and Formal Actions Must Occur in Open Meetings
The Court affirmed that association boards cannot vote or take formal action during closed (executive) sessions. Under A.R.S. § 33-1804(A), associations may close portions of meetings only for “consideration” of certain enumerated topics, such as legal advice, pending litigation, or personal/financial information about individual members. The Court interpreted “consideration” to mean discussion and deliberation, not voting. The Court noted that dictionaries define “consider” as “spending time thinking about a possibility” and “formulating an opinion,” which are processes that precede formal action. This interpretation mirrors how Arizona’s Open Meeting Law (A.R.S. § 38-431.03(D)) prohibits public bodies from voting in executive session.
Reprinted courtesy of
Jill Casson Owen, Snell & Wilmer,
Benjamin J. Hawkins, Snell & Wilmer and
Stephen Wright, Snell & Wilmer
Ms. Owen may be contacted at jowen@swlaw.com
Mr. Hawkins may be contacted at bhawkins@swlaw.com
Mr. Wright may be contacted at swright@swlaw.com
Read the full story...
