Construction Liens: Liening for Amounts Not Yet Technically Due Does Not Mean Lien Is Fraudulent
August 11, 2026 —
David Adelstein - Florida Construction Legal UpdatesA 2024 bankruptcy ruling, In re Edgewater Construction Group, Inc., 657 B.R. 668 (S.D.Fla. 2024), touched upon an interesting issue when it comes to construction liens. Is a construction lien fraudulent simply because the lien includes amounts not yet due? Not necessarily.
In this bankruptcy dispute, the subcontractor debtor (that filed for bankruptcy) recorded two construction liens on projects. The general contractor argued in the bankruptcy court that the subcontractor debtor’s liens were fraudulent.
As to the first lien, the general contractor argued that the lien was fraudulent because it included amounts that the debtor knew the general contractor had already paid to the debtor’s subcontractors/suppliers. The bankruptcy court disagreed: “The Court finds that, although the Debtor had been told that [the general contractor] had paid these subcontractors, in light of the ongoing dispute between Debtor and [the general contractor], it was reasonable for the Debtor to demand proof. Debtor’s subsequent filing of a partial satisfaction of lien once the Debtor received the requested proof of payment from [the general contractor] counters any claim of willful exaggeration.” In re Edgewater Construction Group, supra, at 672-673.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Limitations of Liability Provisions in Construction Contracts: A Means to Manage Risk and Limit Financial Exposure
June 23, 2026 —
Ellen Chapelle, Richard Reizen, Hannah Batsche - Construction ExecutiveTaking a cue from architects and engineers, construction contractors have started inserting limitation of
liability clauses in their construction contracts to manage risk and limit financial exposure. This article will address the specific risks that can be limited through an LOL, tips for negotiating the LOL terms with reluctant owners to cover those specific risks, how to limit unintended consequences of an LOL (such as relieving an insurer of its obligations to cover certain losses), and approaches to setting the amount of the liability cap in the LOL.
Addressing Particular Risks
An LOL can address a wide range of risks, including:
- Damages for delay
- Liability for non-conforming or defective work
- Liability for third-party bodily injury or property damage
- Liability excluded by a general liability policy (e.g., pollution and cyber liability)
- Liability related to intellectual property
Reprinted courtesy of
Ellen Chapelle, Richard Reizen, Hannah Batsche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
Data Center Construction: Contractors Must Step Up
May 26, 2026 —
Aarni Heiskanen - AEC BusinessI attended the
Datacenter Forum 2026 in Helsinki last week. Over 400 people packed the room. Walking out, I had one overriding thought: Is construction operating in a different century from the technology it is being asked to house?
Is Our Industry on Par?
Ciarán Forde, Senior Vice President at CTS Nordics, opened the forum with a statement that set the tone for everything that followed: data centers are no longer just a technical challenge; they are a national strategy. Before AI, Ciarán had worked in telecoms, where data centers were already complex. But now, he said flatly, everything has changed, and the industry must rethink everything.
The numbers behind the claim are staggering. Current AI data center racks run at 40 to 100 kW. In three years, 800 kW per rack is on the roadmap. And the development cycle for a new chip is roughly one year, which means deployments begin aging out almost as soon as they are commissioned.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
How to Fireproof a Neighborhood
March 17, 2026 —
Linda Poon - BloombergAs builders in fire-prone areas like California race to
reimagine homes for a more fiery future, one developer is zooming out to build entire fire-resilient neighborhoods.
KB Home’s developments tackle an issue that’s
hard for any individual homeowner to overcome: “You can do your home perfectly, but if your neighbor didn’t, you still have a fire risk,” said Roy Wright, chief executive officer of the research nonprofit Insurance Institute for Business and Home Safety. In other words, to slow the spread of urban fires
it takes a village.
Read the full story...Reprinted courtesy of
Linda Poon, Bloomberg
Beyond the Storm: How Non-Hurricane Catastrophes Expose Florida’s Construction Defect Blind Spot
August 11, 2026 —
Franchesco “Frank” Soto & Amanda L. Gonzalez - Ball JanikOn June 8, 2026, a magnitude 6.1 earthquake struck the Gulf near the coast of Cuba, the largest instrumentally recorded earthquake in the Gulf since seismic monitoring began in 1950. Buildings swayed, offices were evacuated, and many residents along the east coast of Florida, from Miami-Dade to Jacksonville, felt the ground shake. Although no tsunami followed and reported structural damage was limited, this event exposed a blind spot that Florida property owners, developers, and their counsel cannot afford to ignore: catastrophic stress on Florida buildings does not always come in the form of a named storm.
Florida property owners have grown accustomed to preparing for wind, storm surge, floods, and torrential rain. Far less attention is paid to earthquakes, sinkholes, tornadoes, hail, and non-tropical flooding, each of which can place unexpected stress on buildings not designed with those forces top of mind and can trigger deficiencies in buildings that were not otherwise known, expose design failures, and create an urgency for both insurance claims and subsequent litigation.
Non-Hurricane Triggers of Latent Defects
Seismic activity is the clearest example. Florida’s building code accounts for wind loads, not seismic forces, meaning even a moderate earthquake can reveal weaknesses in curtain wall systems, structural connections, or foundations that were already marginal. Sinkholes, driven by Florida’s karst limestone geology, remain a persistent threat, particularly in Central Florida, where subsurface voids can undermine foundations without warning. Non-tropical flooding, like the record rainfall that flooded South Florida in June 2024, can intrude through building envelopes and waterproofing systems that were never stress-tested for such volumes of water. Tornadoes and hail, while more localized, can cause roofing and envelope failures that mimic, mask, or trigger latent construction defects.
The Litigation and Coverage Disputes That Follow
When one of these events strikes a building already carrying undisclosed or unresolved construction defects, the resulting disputes become considerably more complex. Property owners and associations must move quickly to document existing conditions and distinguish damage caused by the event from pre-existing defective construction, the same causation issue that arises in the hurricane context under Chapter 558, but often without the benefit of established precedent or adjuster experience with these less common events.
Insurance coverage disputes frequently follow close behind. Carriers may dispute whether an earthquake, flood, or other peril is covered at all, particularly where policies contain earthquake or flood exclusions requiring separate endorsements, or anti-concurrent causation language that can bar coverage entirely when a covered peril combines with an uncovered one, such as pre-existing defective construction, to cause a loss. Sinkhole claims carry their own statutory framework under Florida law, requiring specific testing protocols and reporting before a claim is compensable. Developers and contractors, in turn, may find themselves defending Chapter 558 claims while simultaneously litigating with their own carriers over defense and indemnity obligations.
Practical Risk Mitigation Strategies
Property owners, associations, and developers can take several concrete steps to reduce their exposure. First, maintain thorough documentation, including engineering reports, maintenance logs, and photographs, well before any event occurs. This documentation is often the deciding factor in causation disputes. Second, engage structural engineers and consultants immediately following any seismic event, unusual flooding, or storm damage, regardless of whether a hurricane is involved. Prompt inspection preserves evidence and can help prevent inadvertent waiver of construction defect claims. Third, review insurance policies regularly with counsel or a broker to confirm earthquake, flood, and sinkhole coverage matches the property’s actual risk profile, rather than assuming a standard property policy responds to every peril. Fourth, avoid rushing to remediate before conditions are documented and/or before consulting counsel. Well-intentioned repairs can inadvertently compromise evidence needed to prove a defect claim.
The June earthquake was a reminder that Florida’s catastrophic risk profile extends beyond hurricane season. Property owners, associations, and developers who build readiness plans around all forms of catastrophic stress, not just named storms, will be far better positioned when the next unexpected event occurs.
Franchesco “Frank” Soto is a partner in
Ball Janik’s Construction Defect Practice Group in Miami. He may be reached at fsoto@balljanik.com.
Amanda L. Gonzalez is a litigation attorney in
Ball Janik’s Construction Defect Practice Group in Miami. She may be reached at agonzalez@balljanik.com.
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.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
UPDATED: No Easy Fix for Potomac River Sewage Spill, Now Estimated at $20M
April 08, 2026 —
Jim Parsons & Debra K. Rubin - Engineering News-RecordOne month after a collapsed pipeline north of Washington, D.C., spilled about 240 million gallons of raw sewage into the Potomac River and possibly between 300 and 400 million—which could be the largest wastewater spill in U.S. history—efforts are progressing to clear the damaged section and begin repairs despite weather and other impacts.
Reprinted courtesy of
Jim Parsons, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
Read the full story...
Cuomo Bridge Lawsuit Adversaries Weigh Mediated Settlement
July 06, 2026 —
Richard Korman - Engineering News-RecordRival legal teams have reached a critical juncture as they consider a mediated settlement in one of two major payment lawsuits pending between a design-build contracting team and the New York State Thruway Authority over construction of the more than $3-billion Mario M. Cuomo Bridge north of New York City.
Read the full story...Reprinted courtesy of
Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
