It’s That Time of Year: Contract Review Time
February 02, 2026 —
Garret Murai - California Construction Law BlogMy father used to make me wash the family cars every weekend . . . rain or shine. The nice thing about washing a car in the rain is that you don’t need to dry it. Once, while sudsing up one of the family cars in the rain I spotted a couple of Jehovah Witnesses making house calls along our street. As they approached our house, they looked at me, said something to one another, and decided membership probably wasn’t a good fit for our family. If my dad saw that he probably would have thought that was reason enough to have me wash the family cars in the rain. Obviously, I never mentioned it to him.
This is all a rather nostalgic way of reminding myself to get off my duff. The holidays are over. There’s stuff needing doing. Whether you like it or not. Like updating my contracts. You might consider doing the same. A few suggestions:
Retention
For certain private works construction contracts entered into on or after January 1, 2026, retention is now capped at 5%, mirroring the 5% retention cap on state and local public works construction contracts. The 5% retention cap applies to contracts between owners and direct contractors, between direct contractors and subcontractors, and between subcontractors. So, basically, everyone up and down the construction change.
Read the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Don’t Ignore Prejudgment Interest
February 02, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to contracts, there may be a clause that provides that untimely payments shall bear interest at a particular rate. Or it may be the statutory rate. That clause will come into play when determining prejudgment interest. In ANY dispute, prejudgment interest can be an important damages component that accrues from the date of the loss. Don’t ignore prejudgment interest.
The Fourth District of Florida, in a construction dispute, maintained:
“[I]f a plaintiff establishes that he sustained out-of-pocket loss, prejudgment interest must be awarded from the date of the loss. The trial court has no discretion regarding awarding prejudgment interest and must do so applying the statutory rate of interest in effect at the time the interest accrues.”
Bensusan v. Design Engineering Group, LLC, 2025 WL 3466367 (Fla. 4th DCA 2025) (citation omitted).
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
To Settle or Not Settle: Factors to Weigh and Practical Considerations
January 13, 2026 —
Gerard J. Onorata - ConsensusDocsDeciding to settle a construction dispute is often wrought with difficulty, requiring the decision maker to evaluate a number of factors. Nevertheless, there are no hard and fast rules that apply when advising a party whether or not they should settle a dispute. Yet the vast majority of construction disputes do settle before going to trial or arbitration. In fact, recent statistics show that approximately 95% of all civil cases, including construction disputes, settle before trial[1]. However, whether settlement is always the best choice depends on several factors to be discussed here.
Merits of Your Case
First and foremost are the merits of your claims and defenses against any claims that are asserted against you. Construction disputes are inherently fact sensitive, and the merits of a case are driven by the facts of the dispute. Simple breach of contract actions for balances of unpaid funds for the work and materials that have been provided and installed on a project make weighing the merits of the affirmative claim relatively simple. However, these types of “collection cases” stand in stark contrast to complex construction delay claims for equitable adjustment where there exist competing and numerous causes of the delays. In addition, there are complicated legal principles applicable to whether there is entitlement to compensation for the delay or simply an extension of time. Construction defect claims where technical engineering issues are involved also present a heightened level of complexity that may make such cases difficult to prove on the merits.
Read the full story...Reprinted courtesy of
Gerard J. Onorata, Peckar & Abramson, P.C.Mr. Onorata may be contacted at
gonorata@pecklaw.com
Standing When It Comes to Real Property Owned by a Trust
February 23, 2026 —
David Adelstein - Florida Construction Legal UpdatesIt is not uncommon for property to be owned in the name of the trust as part of an estate planning agenda. In construction, improvements are made all the time to real property owned in the name of a trust or later transferred to a trust for estate planning purposes.
In a recent case, the question became that if the property is owned by the trust does only the trust have standing to file the lawsuit. In this case, homeowners, in their individual capacities, sued a flooring contractor for defective work; however, prior to the lawsuit, the homeowners deeded the home (which would include the flooring in the home) to a revocable trust. The plaintiffs, though, were the trustees of the revocable trust and the settlors of the trust.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Florida's Third DCA Reasserts the Teeth of Chapter 558 and the Future of Construction Defect Litigation
February 23, 2026 —
Ryan C. Brooks & Keith G. Salhab - Wood Smith Henning & Berman LLPThe case of Moss & Associates, LLC v. Daystar Peterson and Brickell Heights East Condominium Association, Inc. represents a quiet but significant correction in Florida construction law litigation. The Florida Third District Court of Appeal granted a petition for writ of certiorari and quashed a trial court order that denied a contractor's motion to stay litigation under Chapter 558, Florida Statutes.
Though procedurally narrow, the ruling reflects an increasingly assertive appellate stance. Chapter 558's pre-suit notice and right-to-repair process is mandatory, jurisdictional in effect, and not subject to dilution by trial-level discretion. At its core, the opinion reinforces a foundational principle. Florida intends for construction defect disputes to be managed, investigated, and often resolved before they reach a courtroom. The Third DCA's insistence on strict statutory compliance signals to trial courts, and to the plaintiffs' bar, that procedural shortcuts will not be tolerated.
Reprinted courtesy of
Ryan C. Brooks, Wood Smith Henning & Berman LLP and
Keith G. Salhab, Wood Smith Henning & Berman LLP
Mr. Brooks may be contacted at rbrooks@wshblaw.com
Mr. Salhab may be contacted at ksalhab@wshblaw.com
Read the full story...
EPA, Maryland Sue DC Water Over Massive Potomac River Sewage Spill
May 14, 2026 —
Jim Parsons - Engineering News-RecordThe state of Maryland and the federal government have filed separate lawsuits against the District of Columbia Water and Sewer Authority (DC Water), both alleging that the agency’s failure to address longstanding deterioration in the Potomac Interceptor contributed to a
weeklong release of more than 240 million gallons of raw sewage into the Potomac River this past January.
Read the full story...Reprinted courtesy of
Jim Parsons, Engineering News-RecordENR may be contacted at
enr@enr.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.
Ninth Circuit Affirms District Court’s Finding of No Coverage for Interior Leak
March 24, 2026 —
Tred R. Eyerly - Insurance Law HawaiiApplying California law, the Ninth Circuit affirmed the district court’s finding that water damage caused by a leaking pipe over time was not covered under the insured’s homeowners’ policy. Mojica v. State Farm General Ins. Co., 2025 U.S. App. LEXIS 32405 (9th Cir. Dec. 11, 2025).
A small hole, slightly larger than a pen tip in size, developed in a pressurized hot water pipe. The resulting leak lasted for nearly six days and released enough water to saturate and ruin all the subflooring and flooring in the insureds’ home.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com