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.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Can Anything Supersede Excel in AEC?
April 27, 2026 —
Aarni Heiskanen - AEC BusinessIf there’s one piece of software that dominates the business world across industries, it’s Microsoft Excel. Can AI finally dethrone the mighty spreadsheet?
Memorable Spreadsheet Moments
Everyone has memorable spreadsheet moments. I have a few. For example, my then-architecture firm was involved in more than a dozen housing developments abroad. I developed an Excel workbook that took the required number of households as input and automatically generated a breakdown of buildings and their apartment types for AutoCAD. This was urban planning and architectural design done with a spreadsheet.
I also developed business software using Excel for project portfolio management. The prototype was later scaled into a commercial SaaS that is now used globally.
Another memorable moment was when a property owner told me their Excel file grew so large that it ran out of rows and columns. That must have been before 2007, when the maximum number of columns on a sheet was still just 256 and the maximum number of rows was 65,536. The current limits are 1,048,576 rows and 16,384 columns, which I hope no one will exceed.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
California Enacts Change Order Fair Payment Act
March 24, 2026 —
Michael J. Baker - Snell & WilmerFor private works construction contracts entered on or after January 1, 2026, recent legislation establishes a claims and dispute resolution process for change orders. The law is codified at Civil Code § 8850. A synopsis of the pertinent provisions includes the following:
- Submitting a Claim. Contractors or subcontractors must submit a detailed, documented claim when requesting additional time or payment.
- Owner’s Response Time. The owner must meet and confer within thirty (30) days after receiving the claim. Within ten (10) days of meeting, the owner must provide a written statement identifying which portions of the claim are undisputed and which are disputed. An owner’s failure to respond is treated as disputing the entire claim.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
Did You Get the Message? (And does it count?) The Legal Consequences of Text Messages, Group Chats, and Informal Digital Communication on Construction Projects
March 17, 2026 —
Kellie Ros & Curtis Martin - ConsensusDocsIntroduction: The New Reality of Construction Communication
Construction projects have always depended on a constant stream of communication. Today’s project managers, superintendents, and foremen have broadened the method of communication to include convenient forms of digital communication. Superintendents text photos of field conditions, owners send quick approvals through WhatsApp, architects clarify design intent in a Teams chat, and subcontractors coordinate sequencing through group texts. These channels are fast, convenient, and deeply embedded in modern project culture. Yet the legal framework governing construction contracts has not evolved at the same pace. Many contracts still assume – or require – that notice, directives, and approvals occur through formal written channels—letters, emails to designated recipients, or structured project‑management platforms. This disconnect creates significant legal risk, particularly for contractors who rely on informal messages as authorization for extra work or schedule changes. Courts are increasingly asked to interpret text messages, chat threads, and screenshots as evidence of notice, direction, or waiver. The outcomes vary, but the trend is unmistakable: informal digital communication is now part of the project record, and it can bind parties in ways they did not expect.
Reprinted courtesy of
Kellie Ros, Peckar & Abramson, P.C. and
Curtis Martin, Peckar & Abramson, P.C.
Ms. Ros may be contacted at kros@pecklaw.com
Mr. Martin may be contacted at cmartin@pecklaw.com
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Defend Now, Allocate Later? An Unresolved Tension in Colorado Construction Law
August 16, 2026 —
David McLain - Colorado Construction Litigation BlogFor decades, Colorado law has recognized an important distinction between the duty to defend and the duty to indemnify. The former ordinarily arises at the beginning of litigation; the latter generally cannot be determined until the underlying liability is known. That distinction makes intuitive sense. A defense that becomes due only after litigation concludes is not much of a defense.
But Colorado’s construction anti-indemnity statute, C.R.S. § 13-21-111.5(6), raises an interesting question about how that familiar rule operates in construction disputes. The statute expressly regulates contractual obligations not only to indemnify, but also to insure and defend, and it reflects a legislative policy that construction businesses should bear financial responsibility for their own negligence.
Those principles have developed along separate tracks. At some point, a Colorado appellate court may have to decide precisely how they fit together.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Applying Jury Verdict Method in Quantifying Damages Due to Defective Specifications
March 31, 2026 —
David Adelstein - Florida Construction Legal UpdatesAn older case deals with three important considerations: (1) defective specifications; (2) whether the defective specifications were misleading or misrepresentative; and (3) applying the jury verdict method in quantifying damages.
In Metric Construction Co., Inc. v. U.S., 80 Fed. Cl. 178 (Fed. Cl. 2008), a contractor was contracted by the federal government to construct a warehouse. There were defects in the structural steel design specifications underlying the standing seam metal roof installed by the contractor and, as a result, the roof system leaked causing damage. The contractor incurred significant costs in repairing the damage, and pursued recovery of these costs against the government. The contractor claimed the structural steel design serving as the framework for the metal roof was defective and misleading and caused the leaks.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
What Massachusetts Contractors and Developers Can Learn from Cannistraro v. Columbia Construction
July 13, 2026 —
Anthony LaPlaca & Luke Marston - The Construction SeytIntroduction
On June 26, 2026 the Massachusetts Supreme Judicial Court issued its decision in J.C. Cannistraro, LLC v. Columbia Construction Co.—a holding that sits at the intersection of Prompt Pay Act compliance and the Massachusetts Arbitration Act.
[1]
Most already know that the Massachusetts Prompt Pay Act (PPA) imposes strict timing and certification requirements for rejecting payment applications and proposed change orders on projects valued at $3 million or more. Most notably, the PPA requires the paying party to give the payee written notice of its approval or rejection of progress applications and proposed changes within 15 days of receipt, which notice must include a “factual and contractual basis for the rejection” and must be “certified as made in good faith.”
[2] In the absence of a timely certified notice, payment is “deemed to be approved” unless the payor properly rejects payment before it comes due.
[3]
Reprinted courtesy of
Anthony LaPlaca, Seyfarth Shaw LLP and
Luke Marston, Seyfarth Shaw LLP
Mr. LaPlaca may be contacted at alaplaca@seyfarth.com
Mr. Marston may be contacted at lmarston@seyfarth.com
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