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.
Meet BWB&O’s Super Lawyers Rising Stars in Colorado!
April 08, 2026 —
Dolores Montoya - Bremer Whyte Brown & O’Meara, LLPBremer Whyte Brown & O’Meara, LLP is thrilled to share that Partner
Devin Brunson and Associate
Melissa Youngpeter have been named to the Super Lawyers 2026 Colorado Rising Stars list. This recognition reflects their exceptional work in Personal Injury and Civil Litigation.
SUPER LAWYERS RISING STARS
Devin Brunson: 2024-2026
Melissa Youngpeter: 2026
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O’Meara, LLP
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
Why and When Construction Robotics Makes Sense
February 10, 2026 —
Aarni Heiskanen - AEC BusinessIn construction, robotics is often discussed in terms of technology: better AI, more capable machines, and robots on job sites. Recent research suggests that the question is less about whether robots can work and more about when and why they deliver real value.
An Aalto University research paper on computer-vision-driven robotic waste sorting offers a valuable lens into this. The researchers use ZenRobotics’ computer-vision-enabled automated system as a case study. The Finnish startup was acquired by Terex, a U.S. company, in 2022.
At first glance, waste sorting might seem like a niche application. But it illustrates a broader economic logic that aligns with findings across the broader body of research on construction robotics.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Insurer’s Federal Suit Dismissed in Favor of Insured’s State Suit
April 14, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insured’s motion to dismiss the insurer’s federal suit for declaratory judgment because the insured filed a more complete action in state court. Church Mut. Ins. Co. v. Elmwood Baptist Church, 2025 U.S. Dist. LEXIS 259762 (S.D. W.V. Dec. 16, 2025).
Elmwood purchased a property policy from Church Mutual Insurance Company. After the roof of Elmwood’s property collapsed, the parties disputed the amount Church Mutual owed to Elmwood.
Church Mutual filed suit in federal district court asking for a declaration that the policy was “void ab initio,’ or, alternatively, that Church had fully compensated Elmwood for its loss.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New York Moves to Tighten Third-Party Practice: Key Changes to CPLR 1007
March 31, 2026 —
Sophia L. Cahill - SheppardEffective April 18, 2026, the New York Legislature enacted the Avoiding Vexatious Overuse of Impleading to Delay (“AVOID”) Act, amending CPLR 1007—the statute that governs third-party practice. The amendment sharply limits when and how defendants can commence third-party actions, curbing the expansive discretion they previously enjoyed and targeting the late-stage impleaders that often upend case schedules.
What Changes
Before the AVOID Act was signed into law on December 19, 2025 (and subsequently modified by Chapter Amendments A9502 and S8809, signed by Governor Hochul on February 13, 2026[1]), CPLR 1007 gave defendants broad latitude to implead “any person who is or may be liable” for all or part of the plaintiff’s claim. CPLR 1007 specified no outside time limit for the initiation of a third-party claim; courts assessed only whether a defendant’s delay was undue—such as impleading months after the note of issue—and whether the plaintiff would suffer prejudice if the third-party action were not severed.
Read the full story...Reprinted courtesy of
Sophia L. Cahill, SheppardMs. Cahill may be contacted at
scahill@sheppard.com
SDV Celebrates 30th Anniversary Press Release
April 08, 2026 —
Saxe Doernberger & Vita, P.C.Trumbull, Connecticut – Saxe Doernberger & Vita, P.C. (SDV) is proud to announce the celebration of its 30th anniversary.
Founded in 1996 by three attorneys in a small New Haven, Connecticut office, SDV was built on a clear and focused mission: representing policyholders in insurance coverage matters. Three decades later, that commitment remains at the core of the firm’s identity and has been instrumental in its continued success and reputation nationwide.
Today, SDV is a nationally recognized boutique firm with 50 attorneys serving policyholders across the United States. Building on its longstanding reputation for excellence and client advocacy, the firm is pleased to announce the opening of its newest office in Massachusetts—an exciting milestone that reflects SDV’s continued growth. The new office is led by Managing Partner Anna Perry.
Read the full story...Reprinted courtesy of
Saxe Doernberger & Vita, P.C.
Inaccurate Representations Can Lead to Differing Site Conditions Claim
May 26, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn the
prior posting, I discussed a case dealing with a differing site condition. In that case, the owner did not have an affirmative duty to make a representation and there was no inaccurate representation made by the owner that misled the contractor.
Well, what about when there is an inaccurate misrepresentation regarding the site? This was the circumstance in an older Florida case where a dredging contractor had a successful differing site conditions claim. See Jacksonville Port Authority v. Parkhill-Goodloe, Co., Inc., 362 So.2d 1009 (Fla. 1st DCA 1978).
The government provided inaccurate information as to the lack of rock that would be encountered during the dredging that was relied on by the dredging contractor. But the government had “
superior knowledge” that there was rock in an adjacent location based on a prior claim from a contractor, yet the government did not disclose the possibility that rock could be encountered.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
