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.
Location, Location, Location — But Which One? The Few Words in Your Construction Contract that Pick Where You Fight
June 29, 2026 —
Brad Sands - ConsensusDocsMost professionals know the old real estate line: location, location, location. It turns out to be just as true for construction contracts as it is for property.
Consider a recent case involving a project owner that hired two design firms for a project. When issues arose during construction, the owner sued the design firms in state court in Brazoria County, Texas, pursuant to the forum selection clause in the parties’ contracts. The defendants then removed the case to the federal district court in Galveston, a courthouse in a different county. But the owner wanted the case back in Brazoria County state court. Whether it got its wish came down to two words in the contract: “situated in.” This article is about words like those.
A construction contract’s forum selection clause names the place for the fight nobody plans to have, and where that fight happens can shape how it goes. This article explains why the wording in your forum selection clause deserves careful reading before you sign a construction contract. It is not a deep dive into the mechanics of federal removal jurisdiction, and it is not an academic comparison of the terms “forum” and “venue.” Instead, it is a practical look at how courts actually read these clauses, so the location of a future fight is the one you intended.
Read the full story...Reprinted courtesy of
Brad Sands, Jones Walker, LLPMr. Sands may be contacted at
bsands@joneswalker.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
Southwest Super Lawyers Recognizes 50 Snell & Wilmer Attorneys in 2026 Rankings
June 15, 2026 —
Snell & WilmerPHOENIX (April 22, 2026) – Snell & Wilmer is pleased to announce that 50 attorneys in the Phoenix and Tucson offices have been selected for inclusion in the 2026 Southwest Super Lawyers publication. Of those 50, four were recognized for the first time and 24 were recognized as Southwest Rising Stars. Super Lawyers is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations, and peer evaluations. Super Lawyers was first published in 1991 by Law & Politics and was acquired by Thomson Reuters, Legal in February 2010. Thomson Reuters is a leading source of information for businesses and professionals. The below Snell & Wilmer attorneys have been selected for inclusion in the 2026 Southwest Super Lawyers rankings.
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Snell & Wilmer
Court to General Contractor: Too Late to Reclaim $600K Sub Overpayment
March 03, 2026 —
Richard Korman - Engineering News-RecordMassachusetts contractors and their attorneys are once again testing the limits of the state's 15-year-old prompt-pay law, with concerned prime contractors asking an appeals court to overturn a lower court ruling that they believe gives subcontractors a powerful upper hand in payment disputes.
Read the full story...Reprinted courtesy of
Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
Recognize: A Construction Safety Week Technical Bulletin
February 23, 2026 —
Construction Safety Week - Construction ExecutiveConstruction Safety Week has long been a powerful show of force, a catalyst for bringing the industry together and putting a spotlight on the critical importance of safety. It represents a shared commitment across an expansive and impactful Industry. The construction industry is a major employer and significant contributor to the U.S. economy, creating nearly
$2.1 trillion worth of structures each year—and with that scale comes immense responsibility— and opportunity.
Over the last decade, we’ve made meaningful strides: advancing best practices, transitioning from hard hats to helmets, shedding light on vital issues that affect safety, like mental health, fostering a culture of care and accountability, and creating partnerships and initiatives for improving jobsite safety.
Reprinted courtesy of
Construction Safety Week, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Modern Building-Sundt $17M Claim Is Stranded by Hospital Bankruptcy
April 27, 2026 —
Richard Korman - Engineering News-RecordA $16.9-million claim for work on a hospital addition by a joint venture of contractors Modern Building Co. and Sundt Construction is stuck and delayed indefinitely following the California hospital's December bankruptcy filing.
Read the full story...Reprinted courtesy of
Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
Georgia HB 676: A Bill Property Owners and Contractors Should Watch
March 24, 2026 —
Robert Lafayette - The Construction SeytProperty owners, contractors, and others dealing with mechanics and materialmen’s liens in Georgia should keep an eye on
HB 676, which is currently making its way through the Georgia General Assembly. The bill aims to curb misuse of the lien process and provide additional remedies to those challenging a frivolous lien filing.
What HB 676 Would Do
HB 676 would add a new Code section (O.C.G.A. § 44-14-366.6) to the mechanics and materialmen’s lien statutes. If a lien is filed “without substantial justification or that is not made in good faith or that is made with malice or a wrongful purpose,” this new Code section would impose a fine of $1,500 per lien on the lien claimant, in addition to any attorney’s fees or court costs incurred by the party challenging the lien.
Read the full story...Reprinted courtesy of
Robert Lafayette, Seyfarth Shaw LLPMr. Lafayette may be contacted at
rlafayette@seyfarth.com
