Modular Construction’s Big Boom: New Risks Outpacing Standard Contracts in Industrial Projects
March 24, 2026 —
Chad Theriot & Jack Mayo - Construction ExecutiveModular construction is revolutionizing the construction industry, tackling labor shortages, sustainability goals and supply-chain challenges, with the global market for modular and prefabricated construction projected to reach over $200 billion by 2030. While residential builders have embraced modular’s speed and affordability, the greatest risks—and opportunities—are emerging in the industrial sector, where project scale and complexity demand new legal strategies.
In 2023, Chad Theriot explored industrial and infrastructure applications of modular construction, addressing risks like offsite fabrication and integration complexities in his article, “
The Rise of Modular Construction—Impacts for Consideration.” Since that time, modular construction has continued to experience significant advancements and has been increasingly adopted by contractors across a broad spectrum of industrial and commercial projects. As modular construction continues to reshape the industrial landscape, contractors and owners alike must be mindful of the legal implications associated with its use, specifically as it relates to liability and risk allocation, regulatory compliance, quality control and upstream factors such as transportation and intellectual property concerns.
Reprinted courtesy of
Chad Theriot and Jack Mayo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Tampa Team Obtains Highly Favorable Verdict for Property Owner Client in Lawsuit over Traffic Accident
March 24, 2026 —
Lewis Brisbois NewsroomTampa Managing Partner John Rine and Partner Nick Dareneau obtained a very favorable verdict for their property owner client in a Sarasota County trial in a lawsuit arising from a traffic accident. At the end of closing arguments, plaintiff’s counsel requested appropriately $18 million from the jury. The jury returned a net verdict of just over a thousand dollars.
The plaintiff was on a scooter and was involved in an accident with an SUV in a parking lot intersection. Our firm represented the property owner. The plaintiffs argued that the landscape vegetation was too tall and violated the sight lines of the two drivers, and that the height of the shrubbery violated the owner’s landscaping contract and a local sight line ordinance. They also argued that the intersection lacked a stop sign in contrast to the other six parking lot entrances, which had stop signs.
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Lewis Brisbois
Owner Taking Assignment of General Contractor’s Claims Against a Subcontractor(s)
September 21, 2026 —
David Adelstein - Florida Construction Legal UpdatesHere’s a scenario that occurs in construction defect cases. An owner sues a general contractor and subs for construction defects. The owner settles with a number of parties and takes an assignment of the general contractor’s claims against some or all of the subs and pursues the remaining parties for indemnity based on the assignment of the general contractor’s claims.
This was the scenario in Craftsman Plastering and Lath, Inc. v. Rath Mor, LLC, 2026 WL 2328032 (Fla. 4th DCA 2026). The owner settled with the general contractor and all subs except one. The owner took an assignment of the general contractor’s claim against the sub, and really the indemnity claim. The owner was then substituted as the real party in interest as it relates to the general contractor’s claims against the sub. The owner sought roughly $780,000 in attorney’s fees and costs in connection with the dispute claiming the sub was liable for such fees. The jury didn’t buy the argument and awarded the owner about $55,000. Basically, the jury seemingly prorated the fees by the number of parties, at least, that’s how the math worked out. The owner didn’t like that and moved for an additur to increase the jury’s verdict which the trial court granted. This was reversed on appeal despite the fact that a trial court has broad discretion to grant a motion for additur.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Document Everything! Always! No Exceptions! (AKA, Help Your Lawyer Help You!)
April 14, 2026 —
Melissa Dewey Brumback - Construction Law in North CarolinaI had a case last year in which once again I found myself thinking: if only my client had better documented the verbal agreements, we would have had a much easier time defending his work.
I know this is often easier said than done— you are in the middle of building a project, and you get a call, and you need to keep the project moving. No time for written change directives or a special bulletin. And yet—it is simply amazing to me the number of people who develop “litigation amnesia” about things when a lawsuit is involved.
Your documentation system does not need to be perfect. You can use a simple Field notebook and handwritten notations. A text memo to yourself or, better yet, an email confirmation to the owner/contractor/whoever.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
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.
Anti-Concurrent Causation Clause Prevents Coverage for Collapse
April 27, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the decision of the trial court granting summary judgment to the insurer after agreeing that the policy’s anti-concurrent causation clause barred coverage. Lido Hospitality, Inc. v. AIX Specialty Ins. Co., 2026 Iii. App. Unpub. LEXIS 133 (Ill. Ct. App. Jan. 27, 2026).
One of the brick veneer walls of the Lido Motel collapsed during a windstorm. Lido reported the loss it its insurer, AIX. AIX investigated and determined that the brick veneer collapsed due to pervasive wear and tear and corrosion of the underlying infrastructure that secured the veneer- specifically the components that anchored or tied the masonry veneer to the underlying wooden substrate.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
White and Williams LLP Ranked in the Chambers USA 2026 Guide
June 15, 2026 —
White and Williams LLPWhite and Williams LLP is proud to celebrate the Chambers USA 2026 Guide which has ranked several of the Firm's attorneys and practice groups, underscoring the Firm's overall commitment to providing client service excellence.
The Chambers USA 2026 Guide recognized attorneys Tim Davis, Managing Partner, and Nancy Frantz, Chair of the Real Estate Group, for Real Estate: Finance in the state of Pennsylvania. Randy Maniloff, Partner, Patricia Santelle, Chair Emeritus/Former Managing Partner, and Robert Walsh, Partner were ranked for Insurance in Pennsylvania, and Thomas Pinney, Partner, was ranked in Pennsylvania for Bankruptcy/Restructuring. In the state of Maryland, Partners David Gilliss and Eric Korphage were recognized for their work in Construction.
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White and Williams LLP
Contract Interpretation – Determining What the Contract Requires
March 24, 2026 —
David Adelstein - Florida Construction Legal UpdatesA good ole dispute on contract interpretation in government contracting. Contract interpretation disputes happen all the time in every jurisdiction under the sun. Think about that. Now, what’s the best way to avoid a contract interpretation dispute? Naturally, invest in the contract language and fully understand the scope of work. Make all of this clear. But, of course, this isn’t foolproof meaning you could still be doing this and you could still find yourself in a contract interpretation dispute. Although, if you are doing this, and being proactive, the contract interpretation disputes should be minimal and more streamlined.
In Liberty Technical Services, LLC v. Department of Veterans Affairs, CBCA 8385, 2026 WL 407656 (CBCA 2026), the dispute centered on whether the government owed the contractor for certain, necessary equipment (largely controllers, but also tanks and pumps) not specified in the contract. The government countered that this should be a non-issue because the contractor always acknowledged it was responsible for furnishing the unspecified, necessary equipment, and the contractor did actually provide the equipment without direction from the government. Each party claimed the contract was unambiguous when construed in context.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
