Real Estate & Construction News Roundup (3/11/25) – An AI Inflection Point for Hotels, Investor Pivot in Build-to-Rent and Looming Legislation for Single-Family Investors
March 24, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, lodging demand for World Cup brings growth, commercial property management firms use of AI becomes firmer, construction industry shows slow start to the year, and more!
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Pillsbury's Construction & Real Estate Law Team
John Palmeri and Peter Siachos Named to 2026 Lawdragon 500 Leading Lawyers in America
February 17, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani is proud to announce that Partners John Palmeri and Peter Siachos have been named to the Lawdragon 500 Leading Lawyers in America for 2026. Their inclusion reflects their extensive trial experience, national leadership roles, and sustained excellence representing clients in complex, high-stakes matters.
Now in its 21st year, the Lawdragon 500 Leading Lawyers in America guide honors attorneys who lead the profession through exceptional advocacy, dedication to clients, and influence within their firms and communities. Selected through yearlong research, peer discussion, and robust nominations, the guide recognizes lawyers who continue to shape the legal landscape at the highest levels.
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Gordon Rees Scully Mansukhani
Protect Your Projects By Identifying and Controlling Hidden Contract Risks
March 10, 2026 —
Larry Borda & Daniel Lund III - JD SupraIn a recent webinar entitled “
Spreading the Risk and Avoiding Killer Contract Clauses,” Phelps lawyers Daniel Lund and Larry Borda examined contractual provisions that most often expose construction professionals to unexpected financial and legal risk. While construction contracts may appear routine, each contract serves as the primary mechanism for managing, allocating, and mitigating risk among parties involved in complex projects—often valued in the hundreds of millions or billions of dollars. When parties fail to fully understand the terms they sign, costly and avoidable consequences frequently follow.
Contracts as Risk-Transfer Instruments
Construction contracts are the primary method for transferring risk. While contracts authorize work and define scope, they also allocate responsibility for the risks inherent in construction projects. Some may imagine a world where a one-page agreement and a set of plans would suffice. In reality, modern construction requires detailed agreements—particularly provisions designed to anticipate problems, distribute burdens and reduce disputes.
Reprinted courtesy of
Larry Borda, Phelps and
Daniel Lund III, Phelps
Mr. Borda may be contacted at larry.borda@phelps.com
Mr. Lund may be contacted at daniel.lund@phelps.com
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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.
Texas Voids Out-of-State Forum and Choice of Law Clauses in Construction Contracts
March 17, 2026 —
Conor G. Bateman - Snell & WilmerThe Texas Legislature amended statutes impacting construction contracts for projects located in Texas to declare any forum selection clause or choice of law provision “void as against public policy,” and mandate venue for any litigation or arbitration shall be in the Texas county in which the work is performed. The parties may stipulate to a different venue only after the dispute arises.
Forum selection clauses and choice of law provisions are common in construction contracts. Frequently, general contractors based in other jurisdictions require subcontractors to sign contracts designating the contractor’s preferred venue for any dispute. These contracts may also select the law of another state to govern the contract.
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Conor G. Bateman, Snell & WilmerMr. Bateman may be contacted at
cbateman@swlaw.com
Buffalo, NY Stadium Work Resumes After Suspects ID'ed in $150K Graffiti Vandalism
March 17, 2026 —
Emell D. Adolphus - Engineering News-RecordConstruction work is back on track at Highmark Stadium in Orchard Park, N.Y., after police identifed, but did not arrest two suspects in connection with $150,000 in property damage that paused work for nearly one week at the $2.1 billion stadium project, said the Gilbane Building Cos. and Turner Construction joint venture building it for the National Football League’s Buffalo Bills.
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Emell D. Adolphus, Engineering News-RecordMr. Adolphus may be contacted at
adolphuse@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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“The Superintendent Told Us to Do It:” Why Verbal Approval May Not Be Enough
June 02, 2026 —
Andrew Lintner - Colorado Construction Litigation BlogIn construction defect litigation, one scenario appears repeatedly: a subcontractor installs work in a manner that differs from the plans, specifications, manufacturer instructions, or industry standards after being verbally directed to do so by the general contractor, superintendent, architect, or owner’s representative.
At the time, the decision may seem minor. The project is moving quickly, the field team wants to maintain progress, and nobody wants to stop working over what appears to be a small issue. The subcontractor may trust the superintendent or project manager and assume the conversation will be remembered later if questions arise.
Years later, however, when the project experiences problems, the people involved may deny the conversation occurred, remember it differently, or simply no longer remember the project. Without written documentation, the subcontractor can find itself defending claims for defective work, even though it performed the installation exactly as directed.
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Andrew Lintner, Higgins, Hopkins, McLain & Roswell, LLCMr. Lintner may be contacted at
alintner@hhmrlaw.com
