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.
White and Williams LLP is Proud to Host the 20th Anniversary Virginia Barton Wallace Award and Reception
May 05, 2026 —
White and Williams LLPWhite and Williams LLP is proud to host the 20th Anniversary Virginia Barton Wallace (VBW) Award and Reception, which will celebrate this year’s honoree,
The Rendell Center for Civics & Civic Engagement. This award was created to celebrate the remarkable career of Virginia “Ginny” Barton Wallace, the first woman to be elected to partnership not only at White and Williams but also at any law firm in Philadelphia. The VBW Award is presented to a woman or organization that embodies the same qualities that Ginny possessed: leadership, drive, exemplary work ethic, overall excellence in her field, or an ability to inspire other women to succeed.
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White and Williams LLP
GRSM Attorneys Named Finalists in 2026 Women, Influence & Power in Law Awards
March 10, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani attorneys have been shortlisted as finalists for Corporate Counsel’s 2026 Women, Influence & Power in Law (WIPL) Awards, which honor women leaders who have demonstrated a commitment to advancing the empowerment of women in the legal profession.
In the Law Firm Internal Collaborative Leadership category, Stephanie Jones was recognized for her exceptional ability to foster collaboration, mentor talent, and align colleagues across GRSM. Jones has consistently demonstrated leadership rooted in trust, inclusion, and shared purpose, qualities that have strengthened the firm during a period of extraordinary growth. Her impact on the firm’s culture and success will continue as she steps into her role as Chief Operating Partner in June 2026, where she will further build on her leadership in fostering teamwork, mentorship, and alignment across the firm’s national platform.
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Gordon Rees Scully Mansukhani
GRSM Secures Illinois Appellate Victory for Architectural Firm in Implied Warranty Dispute
May 14, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Partner Jonathan Federman, Partner Thomas Cronin, and Senior Counsel Garrett Lee recently secured a victory in the Illinois Appellate Court, Fifth District, on behalf of the firm’s client, an architectural firm, in a liability dispute.
The case arose following an entity’s purchase of a 111-unit building for use as an investment or rental property. The plaintiff made claims against the architect of the building, alleging that there were design defects that breached an implied warranty, as well as a negligence claim.
GRSM argued that an architect could not be liable for implied warranties, particularly for an implied warranty which no Illinois court has ever recognized. GRSM further argued that Illinois law bars an architect from liability for negligence arising from a duty pursuant to contract under the economic loss doctrine.
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Gordon Rees Scully Mansukhani
If You Get ‘Reported to the Board’ for Your Professional License (Law Note)
January 21, 2026 —
Melissa Dewey Brumback - Construction Law in North CarolinaThe NC
Board of Architecture and the NC
Board of Examiners for Engineers and Surveyors (as well as other Boards, including the NC
Licensing Board for General Contractors) have grievance procedures in which anyone – client or not—can file a grievance against you. That’s the bad news. The good news is that the Boards have seen it all before, and if the grievance is someone unhappy about a bill, or using the process to harass you for unfounded reasons, they will recognize those complaints for what they are.
HOWEVER, this does not mean that you should treat any grievance, no matter how unfounded, lightly. The first thing you need to do is contact your insurance broker/agent and report the matter. Often times, your insurance carrier will hire an attorney (someone like me) to defend you free of charge (at least up to a certain dollar amount). This is part of your insurance coverage, and you should take full advantage of it.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
How to Document Changes and Preserve Claims Without Starting a Fight
December 02, 2025 —
Kristina Southwell - Ahlers Cressman & Sleight PLLCConstruction is a team sport, but you can play nice while still preserving your contractual rights. In every construction project, changes happen and disagreements arise. The trouble comes when during formal dispute resolution months (or years) later, the parties argue about the basic facts of what the issue was, what was authorized, who knew, and whether notice was given. In formal dispute resolution, the most compelling evidence is the contemporaneous, factual documentation in the project record, but many fail to document these issues for fear of harming the relationship with the owner, general contractor, or subcontractor. This article provides practical guidance on how to document changes and potential claims in a way that preserves relationships and avoids escalation during the project itself.
Here’s how to document changes (or your disagreement) to preserve your contract rights and ability to make a claim later, without jeopardizing the working relationship during construction.
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Kristina Southwell, Ahlers Cressman & Sleight PLLCMs. Southwell may be contacted at
kristina.southwell@acslawyers.com
ZEC 2.0: New York’s Zero Emissions Credit Program Gets an Extension and a Reboot
February 10, 2026 —
Stephen J. Humes & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law BlogIn a landmark move that could shape New York’s energy landscape for decades, state officials have taken steps to both preserve its existing nuclear power facilities and significantly expand its advanced nuclear capacity. These actions are part of a broader strategy to maintain grid reliability and meet both escalating energy demand and the state’s ambitious greenhouse gas reduction and zero carbon goals.
Renewing the Zero Emissions Credit Program
On January 22, 2026, the New York Public Services Commission (PSC) unanimously voted to extend and reboot the Zero Emissions Credit program (now called ZEC 2.0) to ensure that New York’s four upstate nuclear reactors maintain operations through 2049. The program, which began in 2016, is designed to provide revenue subsidies for legacy nuclear facilities that have been facing financial difficulties in New York’s competitive wholesale power markets. State officials have stated that the benefits of ensuring the continued operations of these reactors far outweigh the costs due to the lack of zero-emissions alternatives and the importance of ensuring grid reliability in the face of escalating energy demand from large loads like data centers.
Reprinted courtesy of
Stephen J. Humes, Pillsbury and
Jason Drogin Atwood, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
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A Couple of Mechanic’s Lien Bills in VA [UPDATED]
February 23, 2026 —
Christopher G. Hill - Construction Law MusingsWell, its that time of year again, the Virginia General Assembly is in session and looking to make changes to all kinds of things here in the Commonwealth. While most of those changes are well outside of the subject of Construction Law Musings, changes to the
mechanic’s lien statutes certainly are not. This year, the Virginia General Assembly is poised to make some big changes if certain legislation gets out of committee and passes the legislature, a description and some comments on these follow:
HB752 – Mechanics’ liens; liens attaching to property; memorandum of lien. [Original Description] Removes the exclusion of the attachment of a mechanic’s lien to property improved or repaired when the lien is based on a claim for repairs or existing structures. The bill further removes (i) the ability of a lien claimant to file any number of memoranda of lien including the details relating to the lien and (ii) the provisions of the Code specifying that no memorandum filed shall include sums due for (a) labor or materials furnished more than 150 days prior to the last day labor was performed or (b) material furnished to the job preceding the filing of such memorandum.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com