It’s More Than a Feeling: Proving Construction Damages and When You Should Hire an Expert to Help Do It
July 27, 2026 —
Bradley E. Sands & Katie McCracken - ConsensusDocsWhen you win a bid, you might be singing that everything is going your way. Then something goes wrong. The owner hands you defective plans, sits on RFI responses or other critical information, or otherwise upends the work. The costs pile up through no fault of your own. You feel wronged, and you want to be made whole. But a feeling that you got burned is not enough. To recover, that feeling has to become something the law recognizes as damages. So, what are damages, and how do you prove them?
At bottom, contract damages are the money that puts the non-breaching party (i.e., the party that doesn’t breach the contract) in the position it would have occupied had the contract been performed.
Reprinted courtesy of
Bradley E. Sands, Jones Walker LLP and Katie McCracken, Summer Associate, University of Georgia School of Law
Read the full story...Mr. Sands may be contacted at
bsands@joneswalker.com
From Dark Data to Building Intelligence
July 13, 2026 —
Aarni Heiskanen - AEC BusinessIn this episode, I talk with Mark Sorsa-Leslie, founder and CEO of
Auttaa AI, whose team just won first place in Luotea’s inaugural hackathon in Helsinki for turning property maintenance from reactive firefighting into proactive forecasting with AI. Mark is a chartered surveyor with 30 years of real estate data experience, previously the founder of the UK sensor company Beringar.
We discuss why so much building data stays dark and siloed, from outdated networking technology to the shortage of people who understand both engineering and property. Mark explains how Auttaa bridges real-time building data with large language models, using what he calls an “influence graph” to surface correlations and causation across previously disconnected systems, such as linking occupancy patterns to CO2 readings to diagnose ventilation problems in minutes rather than days.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Ownership and Licensing in Design Agreements
April 14, 2026 —
Abby Dvorkin - Snell & WilmerThe ownership and licensing of design documents in professional services agreements play a significant role in protecting the interests of the design professional and the project owner during and after project completion. The ownership or licensing of the drawings provision typically outlines who owns the drawings and specifications, who can use the documents, and how the documents can be used during and after the project.
Project owners and developers should understand that payment for design services does not automatically transfer ownership or an exclusive right to use the professional design. Under U.S. copyright law, the default rule is that the design professional retains ownership of the instruments of service absent a contractual provision transferring ownership or a license. See 17 U.S.C. § 101, et seq. The Architectural Works Copyright Protection Act provides that copyright protection applies to “pictorial, graphic and sculptural works” and includes “architectural works.” 17 U.S.C. § 102. A design professional may only transfer copyright ownership in writing. 17 U.S.C. § 204(a).
Read the full story...Reprinted courtesy of
Abby Dvorkin, Snell & WilmerMs. Dvorkin may be contacted at
advorkin@swlaw.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.
Celebrating BWB&O’s 2026 Super Lawyers Rising Stars in San Diego!
March 31, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners
Jocelyn Russo,
Christina Matian, and Associate
Angelo Perillo have been named to the Super Lawyers 2026 San Diego Rising Stars list. This recognition highlights their outstanding dedication and distinguished service in Family Law, Civil Litigation, and Personal Injury Litigation.
SUPER LAWYERS
Jocelyn Russo: 2023-2026
Christina Matian: 2024-2026
Angelo Perillo: 2024-2026
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O’Meara, LLP
2026 Top Business Risks for Construction and Engineering Companies
May 26, 2026 —
Darren Tasker - Construction ExecutiveThe 2026 Allianz Risk Barometer revealed some surprising findings for construction and engineering businesses. Now in its fifteenth year, this
annual business risk ranking by corporate insurer
Allianz Commercial incorporates the views of 3,338 global risk management professionals on the main perils on their radar for the year.
Survey respondents included construction and engineering risk experts who identified the threats keeping them up at night. Here is how they ranked the top industry risks for 2026:
Natural Catastrophes
Natural catastrophe risk retains the top spot, with 38% of construction and engineering respondents citing this risk as their leading concern for 2026. From the insurance perspective, economic and insured losses remained high, albeit lower than the 10-year average. The evolving nature of natural catastrophes continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural catastrophes are set to reach $107 billion for 2025, according to Swiss Re—the sixth year in a row they have exceeded $100 billion, while economic losses are well in excess of $200 billion.
Reprinted courtesy of
Darren Tasker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
Oracle's $16B Michigan Data Center Secures Financing as Power Contracts Face Appeals
June 08, 2026 —
Bryan Gottlieb - Engineering News-RecordA $16 billion hyperscale data center under construction outside Ann Arbor, Mich., has secured financing backed by Blackstone and other institutional investors, even as the project's power supply agreements now face a legal challenge before the Michigan Court of Appeals.
Read the full story...Reprinted courtesy of
Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
New Executive Order Prohibits Federal Contractors from Engaging in DEI Through Employment and Procurement Activities
April 27, 2026 —
Laura De Santos & Monica Prieto - Gordon Rees Scully MansukhaniOn March 26, 2026, President Trump signed Executive Order 14398, entitled Addressing DEI Discrimination by Federal Contractors, requiring federal agencies to add contractual language in all federal contracts prohibiting contractors and subcontractors from engaging in any racially discriminatory DEI activities, as defined by the Executive Order (EO).
While this EO includes language similar to prior DEI-related orders, it introduces a significant expansion in enforcement by subjecting non-compliant contractors to liability under the False Claims Act (FCA), including exposure to whistleblower actions and qui tam litigation. A qui tam claim is a civil action by a private individual on behalf of the government alleging fraud against federal programs and seeking to recover damages.
The new EO states that involvement in any racially discriminatory DEI activities is not only unethical and illegal, but also deemed fraudulent against federal programs because it is material to the government’s payment decisions. The definition of DEI activities here matters, as this EO expands a contractor’s obligations beyond the management of its employment policies and includes prohibitions against funding or expending time or resources on DEI activities and contracting with subcontractors, vendors, or suppliers utilizing DEI programs.
Read the full story...Reprinted courtesy of
Laura De Santos, Gordon Rees Scully MansukhaniMs. De Santos may be contacted at
ldesantos@grsm.com
