Summary

Construction lawsuits in Florida can stem from many different sources: defects, delays, payment disputes, safety violations, and more. While it’s tempting to crown a single “#1 cause,” the truth is that the industry is too complex and dynamic for such a simple answer. Still, one issue rises to the top again and again: construction defects. In this blog, I’ll explain why, cite what the industry says, and walk you through Florida’s unique Chapter 558 process.

Disclaimer: This blog is for informational purposes only and is not intended as legal advice. If you are facing a construction-related dispute, always consult with a qualified attorney for guidance specific to your situation.

Why There’s No Clear “#1 Cause” of Lawsuits

If you ask ten lawyers and ten contractors what causes the most lawsuits in construction, you’ll probably get twenty different answers. That’s because the construction world is a complicated stew of money, schedules, codes, materials, contracts, and human error. One year, payment disputes may dominate; another year, it might be workplace safety.

That said, construction defects consistently appear at or near the top of every list of legal headaches in the industry. Risk & Insurance, for example, ranks defect claims as one of the top litigation risks contractors face, right alongside worker safety issues (Source: Risk & Insurance, 2022). The law firm Jones Day has called defect litigation an “evergreen” challenge for builders, meaning it never goes away (Source: Jones Day Construction Litigation Report, 2023).

In Florida specifically, several legal publications note that defect litigation remains a leading driver of disputes, although there is no single authoritative ranking that declares it the undisputed #1 cause (Source: Florida Bar Journal, 2021).

Why Construction Defects Lead the Pack

Defects can arise from:

• Design flaws – Plans that don’t meet code or aren’t constructible.
• Workmanship errors – Mistakes in concrete, waterproofing, roofing, stucco, etc.
• Material failures – Products that don’t perform as advertised.
• Maintenance gaps – Buildings where routine upkeep isn’t done, leading to damage blamed on construction.

Florida is particularly defect-prone for three reasons:

1. The coastal climate – Salt, humidity, and hurricanes are unforgiving.
2. Aging building stock – Many condos built in the 1970s–90s are now showing their age.
3. Rapid development – Fast construction cycles sometimes lead to quality shortcuts.

It’s the perfect recipe for disputes. And when problems show up years later, lawyers get called.

Chapter 558: Florida’s Pre-Lawsuit Process

In Florida, defect disputes are supposed to go through Chapter 558 of the Florida Statutes before hitting the courtroom. This is called the “pre-suit notice and right-to-cure” process. Here’s how it works:

1. The property owner (or condo association) serves a notice of construction defects to the contractor, design professional, or supplier.
2. The contractor has the right to inspect the alleged defects.
3. The contractor can respond with an offer to repair, settle, or reject the claim.
4. If no resolution is reached, then a lawsuit may follow.

The intent was to reduce lawsuits by encouraging settlement before trial. In practice, many say it just adds another procedural step without cutting down litigation much (Source: Florida Statutes Chapter 558; Florida Bar Journal, 2021).

Different Perspectives

Some attorneys argue that payment disputes or delays actually generate more claims than defects. That’s true in certain markets—especially in heavy civil or public projects where change orders and late payments run rampant. Others point to OSHA violations and worker injuries as massive sources of liability.

But here’s the difference: many of those disputes settle faster, while defect litigation tends to drag on for years. Defect cases involve layers of experts, destructive testing, insurance carriers, and finger-pointing between contractors, subs, architects, and suppliers. That’s why, while not always the “most numerous,” they remain the most feared and expensive lawsuits in Florida construction.

Bibliography

• Source: Risk & Insurance, “The Top Litigation Risks in Construction,” 2022.
• Source: Jones Day, “Construction Litigation Report,” 2023.
• Source: Florida Bar Journal, “The Ongoing Challenge of Defect Claims,” 2021.
• Source: Florida Statutes Chapter 558 (leg.state.fl.us).
• Source: American Bar Association, “Managing Construction Defect Litigation,” 2022.

For additional information you can access the following:

• Associated General Contractors of America – www.agc.org
• Florida Bar – www.floridabar.org

Summary

Construction lawsuits are everywhere in Florida, but what’s the number one cause? While it would be nice to point to a single culprit, the truth is more complicated. Different sources rank different risks as the most pressing, but construction defects consistently show up near the top of the list, especially in Florida’s high-stakes environment. In this blog, I’ll explain why construction defect claims are such a driver of litigation, how Florida’s Chapter 558 process fits into the picture, and why pinning down a single “biggest cause” is trickier than it looks.

Why There’s No Clear #1 Cause

When it comes to construction lawsuits, every lawyer, insurer, and contractor has their own “biggest headache.” For insurers, worker safety claims might top the charts one year, while defect litigation spikes the next. Publications like Risk & Insurance have called defect claims one of the top challenges facing contractors, second only to safety issues (Source: Risk & Insurance). Law firms like Seyfarth Shaw describe construction defect litigation as an “evergreen” problem—meaning it never really goes away, it just keeps resurfacing (Source: Seyfarth Shaw LLP).

The challenge in declaring a single #1 cause comes down to how the data is sliced. Worker safety issues, payment disputes, and contract breaches are all common sources of conflict. But in Florida, where condos, high-rises, and coastal structures dominate the landscape, defects have an outsized role in shaping the litigation landscape. A crack in a beam or a poorly waterproofed façade in Miami can trigger a multimillion-dollar case.

The Central Role of Construction Defects

So let’s talk defects. A construction defect lawsuit is essentially a claim that something in the building was built wrong, designed wrong, or installed wrong, and that the defect has caused damage or risk. Think water intrusion through improperly sealed windows, spalling concrete on a parking garage ceiling, or roofs that fail long before their advertised lifespan.

In Florida, where salt, humidity, and hurricanes conspire against buildings, defects aren’t just annoying—they can quickly become catastrophic. That’s why defect claims are not just frequent; they’re expensive. Litigation can stretch for years, involve dozens of parties, and rack up seven-figure legal bills before a single repair is even made.

The Florida Twist: Chapter 558

Here’s where Florida’s unique legal framework comes in. Chapter 558 of the Florida Statutes—formally known as the “Florida Construction Defect Statute”—was created as an alternative to immediate lawsuits. Lawmakers realized that sending every crack and leak straight into a courtroom was inefficient, so they designed a pre-suit process intended to encourage resolution without clogging the courts.

For property managers and board members, understanding this process is crucial because it often dictates the timeline and strategy when a defect is discovered. Chapter 558 requires the party claiming a defect—often a condo association or property owner—to send written notice of the defect to the contractor, subcontractor, supplier, or design professional before filing a lawsuit. Once notice is given, the contractor has the opportunity to inspect the alleged defect, request documents, and even make a repair or settlement offer.

From a manager’s perspective, this can feel like a waiting game. You’re dealing with angry residents, visible damage, and maybe even safety concerns, but the statute imposes deadlines and procedures that must be followed before jumping into court. The contractor, for their part, may deny the defect, blame a different trade, or argue that maintenance failures caused the problem. All of this unfolds while the clock ticks and the building continues to deteriorate.

What makes Chapter 558 both useful and frustrating is that it doesn’t always prevent litigation—it just sets the stage. Many claims still end up in court after the notice and response process, but the statute does force the parties to at least try to resolve issues first. For property managers, this means being prepared with good records, inspection reports, and engineering opinions. It also means communicating with residents about why things may take months before seeing actual repairs or resolutions.

Another wrinkle is insurance. Many construction professionals must notify their insurers as soon as they receive a Chapter 558 notice. That means the insurance company may start directing the strategy, which can complicate negotiations. Property managers should understand that insurers aren’t in the business of writing blank checks, and they will look for any reason—scope disputes, maintenance failures, missed deadlines—to limit their liability.

The key takeaway for managers is this: Chapter 558 is not optional. Ignoring it or trying to “speed things up” can backfire legally. Instead, professionals should lean on experienced construction attorneys and engineers to navigate the process. As frustrating as the statute can be, it’s part of the framework that governs how Florida addresses defect claims, and it will almost certainly play a role in any significant construction dispute your property faces.

Why Florida Professionals Should Care

For those managing condos or commercial buildings, the Chapter 558 process can feel like bureaucracy at its worst. But it’s also your opportunity to gather evidence, show that your association is acting in good faith, and build leverage for either a settlement or litigation. Skipping steps or failing to provide proper notice can put your building at a disadvantage.

And remember: defect claims in Florida don’t just affect the people directly involved. They ripple through the industry, raising insurance premiums, stalling repair projects, and influencing how engineers and contractors write their contracts. For managers, that means more oversight, more paperwork, and sometimes more headaches—but also the chance to protect your building’s value and residents’ safety by staying on top of the process.

Different Perspectives

Some in the industry argue that Chapter 558 only delays the inevitable. They claim that if a defect is serious enough to warrant notice, the case is bound for litigation anyway. Others criticize the statute for giving contractors a “second bite at the apple,” allowing them to patch over issues without real accountability. Still others feel the process is tilted against associations and property owners, who must continue to live with the defect while the legal back-and-forth unfolds.

While these critiques aren’t entirely baseless, they miss the bigger picture. The statute was never intended to be a magic fix; it was meant to create breathing room and encourage resolution before lawsuits spiral out of control. In practice, it has led to settlements and repairs that might not have happened otherwise. And for managers, it provides a structured framework—imperfect though it may be—that is better than being thrown immediately into years of litigation.

Disclaimer

This blog is not meant to provide legal advice. It is for informational purposes only. Construction defect law and litigation are highly complex, and no single article can cover every nuance. If you are facing a potential defect claim or construction dispute, always consult a licensed attorney who specializes in construction law.

Bibliography

Source: Risk & Insurance – “Top Construction Risks”
Source: Seyfarth Shaw LLP – Construction Litigation Outlook
Source: Florida Statutes, Chapter 558 – Construction Defect Statute
Source: American Bar Association – Construction Defect Litigation Trends
Source: Engineering News-Record – Legal Landscape of Construction Defects

For additional information you can access the following:

• Florida Statutes Online – www.leg.state.fl.us
• American Bar Association – www.americanbar.org

Summary

Concrete repair projects in Florida have a notorious reputation for going over budget. In this blog, I’ll break down the top three reasons why it happens—hidden conditions, underestimated quantities, and change orders—plus a few honorable mentions like material price escalation and contractor performance. I’ll also share a real-life story from a South Florida condo project where the budget ballooned sixfold, and what property managers and Boards can learn from it.

Reason 1- The Hidden Conditions Nobody Wants to Talk About

If you’ve ever had a toothache, you know that what you see in the mirror (a tiny dark spot) is only the beginning. By the time the dentist pokes around, suddenly you’re scheduling a root canal and rethinking your sugar habits. Concrete repair works the same way.

When engineers like me go out to quantify spalling or deterioration, we’re often limited by what we can see. We walk the building, tap surfaces with hammers, check balconies, parking garages, and columns, and make the best estimate we can. But concrete is sneaky. A small crack on the outside may hide a spider web of corrosion inside. Once contractors start chipping away, we often discover that the damage goes much deeper and wider than what was visible during inspection (Source: American Concrete Institute ACI 562-19).

This isn’t because engineers are bad at their jobs—it’s because we don’t carry x-ray vision goggles. Even advanced tools like ground-penetrating radar or half-cell corrosion testing give us only probabilities, not certainties. The truth is, hidden conditions are the single biggest budget-buster in concrete restoration.

What can boards and homeowners do?
One practical step is to budget a contingency fund—typically 15–25% of the projected repair costs—for hidden conditions. Think of it as the rainy-day fund for your building. If the hidden problems don’t show up, you can always reallocate the money. But if they do—and they usually do—you’re not blindsided.

Reason 2- Underestimated Quantities

This reason is often confused with hidden conditions, but they’re not quite the same. Hidden conditions are surprises we literally couldn’t see until demolition began. Underestimated quantities, on the other hand, are sometimes the result of optimistic projections, rushed inspections, or even just the natural difficulty of predicting how many cubic feet of concrete will ultimately need replacing.

For example, during a safety inspection, I may estimate that 10% of the garage deck is compromised. Once the contractor mobilizes and starts chipping, it turns out to be 25%. The quantity itself wasn’t “hidden”—it was underestimated.

What can be done about it?
Boards and managers can reduce the risk of underestimated quantities by insisting on thorough inspections before bidding. That might include destructive testing—yes, actually breaking into a few sample spots to see what’s really going on beneath the surface. It costs money upfront, but it’s cheaper than writing six-figure change orders later. Getting multiple bids and comparing not just the price but the scope of assumed repairs also helps spot underestimates.

Reason 3- Change Orders

Ah, the dreaded change order. If hidden conditions are the toothache and underestimated quantities are the cavity, change orders are the dental crown you didn’t budget for but suddenly need.

In concrete repair, change orders can arise from two main sources:

1. Necessary changes because the damage is worse than expected.
2. Elected changes because the board or owners decide to upgrade.

I’ve seen both. Sometimes, a change order is unavoidable, like when new cracks appear mid-project. Other times, a newly elected board wants to replace all the windows, sliding glass doors, or railings while the contractor is already on-site. These “scope creep” decisions can turn a $2.5 million project into a $15 million project (more on that in the story below).

How to minimize change orders?
The key is clear planning and scope definition from the beginning. If you think new windows might be in your building’s future, bake them into the original project. Make sure your contracts have a clear change order process with oversight from your engineer. And keep open communication between the engineer, contractor, and Board so surprises don’t derail the budget.

Honorable Mentions

While hidden conditions, underestimated quantities, and change orders are the big three, two other issues deserve recognition:

Material Price Escalation.
Concrete, reinforcing steel, epoxy, and coatings are global commodities. Prices rise with inflation, tariffs, or supply chain disruptions. Anyone who lived through 2020–2022 saw material costs shoot up mid-project. That’s why locking in pricing with your contractor when possible is so important (Source: Associated General Contractors of America).

Contractor Performance Issues.
Concrete repair is a specialized trade. Unfortunately, not every contractor is equally skilled, and Florida has a shortage of experienced restoration crews. If work has to be redone, or if corners are cut, costs rise fast. Choosing contractors with a proven track record in structural repair is critical. And remember, repairing bad concrete repairs costs significantly more than doing it right the first time.

True Story to Learn From

A few years back, I worked as the engineer and owner’s representative on a large seaside condo in Dade County. The initial budget was about $2.5 million. Reasonable enough, right? Well, by the time the project wrapped up, the final tab was closer to $15 million.

Surprised? I figure you’d be. But here’s what happened: a new incoming board decided they wanted brand new sliding glass doors, windows, and glass railings on the entire property. That decision alone added millions. On top of that, the concrete repair quantities were underestimated and the change orders piled up.

Here’s the silver lining: by the time the project finished, the building looked stunning. Its market value shot up, and residents were proud of their investment. The downside? HOA fees rose significantly, and some residents couldn’t afford to stay. It was a happy ending for the building, but not for everyone inside it.

Different Perspectives

Some in the industry argue that hidden conditions and underestimated quantities shouldn’t be excuses—that engineers should be able to predict everything upfront. But the reality is more complex. Even with destructive testing, corrosion can spread unpredictably, especially in coastal Florida where saltwater intrusion accelerates deterioration. Other critics claim that change orders are often “padding” by contractors. While there’s no denying that unethical practices exist, in most cases, change orders reflect legitimate shifts in scope or conditions. This is why having a trusted engineer oversee the process is so vital.

Bibliography

Source: American Concrete Institute (ACI 562-19). Code Requirements for Assessment, Repair, and Rehabilitation of Existing Concrete Structures.
Source: Associated General Contractors of America. Construction Inflation Alert. www.agc.org
Source: Florida Statutes, Chapter 718 & 720. Condominium and HOA laws regarding structural integrity reserves. www.leg.state.fl.us
Source: Florida Building Code, 2023 Edition.
Source: International Concrete Repair Institute (ICRI). Guidelines for Concrete Repair.

For additional information you can access the following:

• Concrete International (www.concrete.org)
• Florida Engineering Society (www.fleng.org)

Summary

Concrete repair isn’t just a maintenance task in Florida—it’s part of a billion-dollar industry that keeps engineers, contractors, and lawyers very busy. From salt and humidity eating away at steel to aging buildings now facing stricter post-Surfside laws, Florida sits at the center of concrete repairs. In this article, I’ll explain why our coastal environment makes us ground zero for spalling, what the new rules mean, and why fixing concrete is never just a matter of sprinkling some magic dust.

Why Florida is at the Center of this Billion-Dollar Industry

When people outside the Sunshine State think of Florida, they picture retirees, iguanas sunning themselves on rooftops, and hurricanes that make the Weather Channel anchors stand sideways in the wind. What they usually don’t think of is concrete repair. Yet here, concrete repair is as much a part of life as sunscreen and toll roads.

So why is this so prevalent in Florida? The answer comes down to three major villains and one very important new referee:

• Salt and ocean air (chloride ions that love eating steel for breakfast).
• Humidity and rain (moisture is like the gasoline on the fire).
• Aging building stock (some of it more than 100 years old in places like South Beach).
• Post-Surfside laws and regulations (the referee blowing the whistle harder than ever before).

Put these together and you have the perfect recipe for concrete spalling, multimillion-dollar repairs, and, in many cases, lawsuits when boards, residents, contractors, or owners try to cut corners.

(Source: Federal Highway Administration report on corrosion in reinforced concrete structures, 2013; FEMA coastal construction guidelines).

Salt, Humidity, and the Ocean: Florida’s Three Musketeers of Corrosion

Let’s start with our environment. Salt air is basically the “hiding stalker” of concrete deterioration—it sneaks in through microscopic pores, finds the reinforcing steel (rebar), and starts a corrosion party. When steel rusts, it expands, pushing out against the concrete cover. That’s when you see cracks, bulges, and chunks falling off your balcony.

Now, add Florida’s humidity into the mix. We don’t just get humid; we practically breathe soup for six months of the year. Moisture keeps the steel perpetually wet, which is exactly what corrosion needs to thrive. Pair that with common rainstorms and the occasional hurricane, and you’ve got conditions that would make even the best concrete tremble.

Finally, there’s the ocean. For seaside condos in Miami Beach, Hollywood, or Fort Lauderdale, salt spray acts like free delivery service for chloride ions. Even buildings that are set back from the beach still deal with wind-blown salt. The American Concrete Institute notes that coastal environments are some of the harshest for reinforced concrete, requiring special durability design (Source: American Concrete Institute, ACI 562-19).

It’s no wonder so many of my inspections feel like I’m walking into a CSI episode for concrete.

Aging Buildings: Florida’s Time Bombs

Miami-Dade and Broward counties are full of buildings that were thrown up during the condo boom of the 1960s and 1970s. Many of these are now 50+ years old, and some historic buildings in South Beach are over 100 years old and still in active use. According to the Miami-Dade County Property Appraiser’s data, nearly half of Miami Beach’s condo inventory was built before 1980 (Source: Miami-Dade County Property Appraiser).

That means tens of thousands of units are now at or past the age when significant structural repairs are unavoidable. If you own one of these buildings, congratulations—you basically own a classic car. It may look great from a distance, but under the hood the rust is spreading fast, and the mechanic (in this case, your engineer) is about to hand you a very large bill.

The truth is that aging reinforced concrete doesn’t just need cosmetic touch-ups. By the time spalling shows up on the surface, it usually means there’s a deeper structural issue brewing.

The New Laws After Surfside

On June 24, 2021, the Champlain Towers South collapsed in Surfside, killing 98 people. This tragedy shook the entire country and permanently changed the way Florida regulates building safety. The new laws passed in 2022 and updated in 2023 mandate stricter timelines and reserve funding requirements:

• Milestone inspections are now required statewide for condos and co-ops three stories or higher.
• Buildings must complete their first inspection at 30 years old, or 25 years old if located within three miles of the coast. After that, inspections repeat every 10 years.
• Structural Integrity Reserve Studies (SIRS) are required so boards can no longer waive reserves for major structural elements. That means setting aside millions for future concrete repairs whether you like it or not.

(Source: Florida Statutes 553.899 and 718.112; Florida Building Commission updates).

These new regulations are like the state saying, “No more kicking the can down the road.” For boards, that means bracing residents for mandatory assessments. For engineers like me, it means a steady stream of inspection calls. For concrete contractors, it means business is booming—sometimes literally.

Table: Why Florida Is at the Epicenter of Concrete Repair

Here’s a breakdown of the major culprits that make Florida ground zero for concrete repair:

True Story to Learn From

Years ago, I was the engineer and contractor on a building in South Beach right on the ocean. Up to that point, it was the worst case of concrete deterioration I had ever seen. Balconies were crumbling, the garage looked like it had been used for target practice, and the rebar was so rusted I thought about bringing a tetanus shot just to walk the site.

I sat down with the Board and told them bluntly: “You’ve got two choices. Repair this building at great cost, or tear it down and start over.” Their jaws dropped. But here’s the kicker: tearing it down wasn’t really an option. The building was historic, and zoning laws had changed so much that a new structure wouldn’t have come close to matching the old one.

So, they bit the bullet and chose repairs. The project took nearly two years and cost almost as much as building a new tower. But when it was done, the building looked brand new, the units skyrocketed in value, and the owners had the peace of mind of knowing their building wasn’t about to join the Surfside cautionary tale.

The moral? Concrete repair isn’t optional in Florida. It’s survival.

Different Perspectives

I’ve actually heard people argue that concrete repairs are exaggerated by engineers and contractors looking for work. I’ve heard residents mutter under their breath during board meetings, “This is just a scam to line their pockets.” Others point to chemical products advertised as “miracle cures” that supposedly stop corrosion without the need for messy repairs.

Here’s the problem: the science doesn’t back those claims. The American Concrete Institute and the International Concrete Repair Institute are clear that once steel reinforcement is actively corroding, the only durable fix involves removing deteriorated concrete, cleaning the steel, and patching with repair mortar (Source: International Concrete Repair Institute Guidelines). Anything else is like putting a Band-Aid on a broken bone.  I would also say that Cathodic protection is also a very viable alternative (more on that in another article).

As for the suspicion about engineers? Trust me, I don’t get any joy from telling a group of retirees their maintenance fees are about to triple. It makes me about as popular as a mosquito at a barbecue. But ignoring the problem doesn’t make it cheaper—it only makes it worse.

Bibliography

Source: American Concrete Institute (ACI 562-19) – Code Requirements for Assessment, Repair, and Rehabilitation of Existing Concrete Structures
Source: International Concrete Repair Institute (ICRI) – Concrete Repair Guidelines
Source: Federal Highway Administration (FHWA) – Corrosion Costs and Preventive Strategies in the United States (FHWA-RD-01-156)
Source: FEMA – Coastal Construction Manual (FEMA P-55)
Source: Florida Statutes 553.899 and 718.112 – Milestone Inspections and Structural Integrity Reserve Studies
Source: Miami-Dade County Property Appraiser – Historical Building Stock Data

Summary

Renovating or restoring a condo in South Florida can feel like opening a mystery box—you never know what you’re going to get. One of the biggest triggers of lawsuits in restoration projects isn’t necessarily bad workmanship or shady contractors, but good old-fashioned cost overruns and change orders. In this blog, I’ll explain why these issues are so common in concrete restoration, why engineers aren’t fortune-tellers, and what boards and property managers can do to minimize the fallout.

Why Cost Overruns Happen So Often in Concrete Repair

If you’ve ever been involved in a renovation or restoration project, you know this story: you start with one budget, and somewhere along the way, that budget explodes like a piñata filled with unexpected bills. In South Florida, lawsuits are practically a pastime when it comes to construction disputes, and concrete repair is a common culprit.

Why? Because unlike new construction, where you’re working with a clean slate, restoration means dealing with hidden conditions. Engineers don’t have X-ray vision (although I wish we did). What we see in our inspections is only the surface. Once work begins and contractors start chipping away at concrete, they might find steel so corroded it looks like rusted rebar spaghetti, or wood supports where there should have been reinforced concrete.

Let’s compare:

• New construction surprises usually mean soil conditions or underground utilities. Those can be bad, but at least we usually have soil borings and utility maps to guide us.
• Restoration surprises mean everything hidden behind walls, under slabs, or inside columns. These are often discovered only once the jackhammers start pounding.

When the budget jumps, people get angry—understandably so. The owners or board members are footing the bill, and nobody enjoys unexpected costs that hit the pocketbook. But the reality is, in restoration, the risk of these hidden conditions is sky-high compared to other types of construction.

And once lawyers get involved—and they often do—contracts get tested, blame gets tossed around, and suddenly the engineer, the contractor, and the project manager are all wearing bullseyes on their backs.  I’m reiterating here that lawyers are not a bad thing.

The Top 3 Causes of Overruns and Change Orders

1. Hidden Conditions

This is the number one reason costs balloon. In concrete restoration, we engineers inspect, tap, and test, but we can’t see every crack that lurks beneath the surface. Spalling (that cancer-like process of concrete breaking away from rusting rebar inside) grows geometrically over time. A small patch visible today could mean a much larger patch lurking behind it.

When bidding, contractors use the quantities shown in the engineer’s plans. But if once the work begins, the actual spalls are far more extensive, the cost skyrockets. Boards and managers should plan ahead by adding a contingency (often 15–20%) to the budget to account for hidden conditions. It won’t stop the surprise, but at least you’ll be financially better prepared.

2. Underestimated Quantities

This one is related to hidden conditions but slightly different. Quantities of repair are based on inspections that are inherently limited. Engineers try their best with sounding, coring, and other testing methods, but we can only probe so much before the building starts looking like Swiss cheese.

Underestimation doesn’t mean engineers are careless—it’s simply the nature of the beast. If we call out 1,000 square feet of spalling and once the job starts it’s 2,500, that’s not fraud; it’s just reality. One way to minimize the sting is to do more thorough pre-bid investigations and destructive testing, though that costs more upfront. It’s a trade-off that boards need to carefully consider.

3. Change Orders

Change orders are the sworn enemy of every board treasurer. They often go hand-in-hand with underestimated quantities but can also arise for entirely different reasons. For example, during a concrete repair job, a new board might decide to replace all the windows or install new sliding glass doors. Suddenly, the contract balloons because the scope of work has changed.

Not all change orders are bad. Sometimes they’re necessary to comply with updated codes or to address issues uncovered mid-project. But when they’re avoidable (like deciding halfway through to upgrade all the glass railings), they’re costly and disruptive. The best mitigation? Lock down the scope of work before the project starts and resist the temptation to add shiny extras in the middle of construction.

Honorable Mentions

• Material escalation: Tariffs, supply chain issues, and inflation have driven up costs of steel, concrete, and aluminum significantly.
• Contractor performance: Concrete repair is specialized, and skilled crews are limited. Poor workmanship or slow production can drive costs up even more.

What Can Be Done to Minimize Cost Overruns?

Here’s what I recommend:

• Budget for contingencies: Boards should always set aside 15–20% for hidden conditions.
• Invest in detailed pre-bid inspections: Spending a little more upfront for testing may save you from massive surprises later.
• Lock down the scope early: Avoid scope creep by finalizing all big decisions (windows, railings, etc.) before bidding.
• Communicate clearly: When surprises arise, explain them transparently to owners. Anger often comes from not understanding why something happened.

And remember: I’ve been part of hundreds of projects over the years. Breaking the bad news to boards is never fun. My heart goes out to volunteer board members who take on this mostly thankless job—until big-money issues surface. That’s when friendships and neighborly goodwill can evaporate, sometimes leading to lawsuits.

True Story to Learn From

Several years ago, I worked on an 18-story beachfront condo in South Florida. It was your typical reinforced concrete building with countless balconies. Midway through the project, the owner decided to buy new sliding glass doors for all the units. Seemed simple enough.

But when we did the mockup, we discovered something bizarre: decades ago, someone had installed false columns made of wood to hold the sliding doors in place. Yes, wood. On a high-rise. Facing the ocean.

According to the Notice of Acceptance (NOA)—that’s the approval document Miami-Dade and Broward use to certify that products meet hurricane and building code standards—sliding glass doors on a high-rise in South Florida should be attached to concrete. The solution? Tear out all the fake wood columns and replace them with formed and poured concrete columns. Incredibly expensive.

Could someone have sued me for not spotting this earlier? Possibly. But the glass doors weren’t even part of the original contract; they were added later. The bigger lesson was this: scope out the job thoroughly at the beginning, because every surprise down the line adds cost, frustration, and risk.

Different Perspectives

Some argue that contractors or engineers should guarantee quantities upfront, absorbing the financial risk of hidden conditions. While this sounds attractive to boards and owners, in practice it doesn’t work. No engineer can predict the full extent of spalling without fully demolishing the structure beforehand—which defeats the purpose. Contractors who take on too much risk will pad their bids heavily, meaning you’ll pay more from the start.

Others claim that change orders are just profit-padding. While bad actors exist in every industry, most legitimate change orders come from real, unforeseen issues. Dismissing all change orders as scams risks jeopardizing the safety and compliance of the project.

Bibliography

Source: American Concrete Institute (ACI 562-19), Code Requirements for Assessment, Repair, and Rehabilitation of Existing Concrete Structures.
Source: Florida Building Code, 8th Edition, Existing Building provisions.
Source: Florida Statutes Chapter 558, Construction Defects.
Source: Miami Herald coverage of Surfside and subsequent building safety regulations.
Source: U.S. Bureau of Labor Statistics, Producer Price Index for construction materials.

For additional information you can access the following:

Concrete International Magazine (ACI) – www.concrete.org

Engineering News-Record (ENR) – www.enr.com