Jonathan P. Cohen, P.A.
Call (954) 462-8850
Jonathan P. Cohen, P.A.
Call (954) 462-8850

500 East Broward Blvd., Suite 1710
Fort Lauderdale, Florida 33394
Phone: (954) 462-8850
Fax: (954) 848-2987

Economic Downturn Leads to Construction Litigation

South Florida construction lawsuits

The information provided in this article does not, and is not intended to, constitute legal advice.
The content in this article is available for general informational purposes only.

Increase in South Florida Construction Lawsuits

Real estate developers in south Florida should be aware that construction litigation has sharply increased. Some of these south Florida construction lawsuits can be attributed to a downturn in the economy and developers not having enough money to pay their bills during construction projects. The increase in litigation has been intertwined with the uptick in coronavirus cases, leading to greater uncertainty and volatility in the construction industry. South Florida construction lawyer Jonathan P. Cohen anticipates that construction litigation will continue to increase over the upcoming months.

The law firm of Jonathan P. Cohen, P.A. represents companies, sureties and project owners in construction litigation offering legal services and counseling on how they can overcome dire circumstances both in normal and these most unusual times. Jonathan P. Cohen has witnessed numerous claims from suppliers, subcontractors, and contractors for nonpayment.

Early in the pandemic, the state of Florida deemed construction companies to be essential businesses that were not subject to the stay-at-home orders that were issued earlier in 2020. This meant that construction companies continued to incur bills as the economic shutdown caused capital sources to dry up. At the same time, the pandemic has also disrupted the supply chain causing problems in getting needed materials from overseas suppliers and nonessential businesses and exerting upward pressure on the costs of building materials.

In spite of the fact that construction was deemed an essential industry, new construction activity has fallen for several consecutive months in south Florida. In June, residential construction fell by more than 60% because of the lack of capital sources in south Florida. Contributing to this is the hesitancy of investors who have been more cautious because of the unpredictability of developers’ ability to repay their loans, which can affect the investors’ returns on their investments. Condominium developers have also experienced a slowing of unit sales because of the difficulties of social distancing while living in crowded buildings. This has resulted in condominium developers taking much longer to sell all of the units in a building, greatly reducing the annual rates of return for investors.

Jonathan P. Cohen believes that the reductions in construction activity and the increases in nonpayment from developers may result in more construction lawsuits in south Florida. Contractors are becoming increasingly aggressive as they seek payment for new work that they perform.

Get help from Jonathan P. Cohen, P.A.

South Florida construction lawyer Jonathan P. Cohen represents clients in all aspects of the litigation process. If your company is currently embroiled in a construction dispute, we can advise you about your legal options. Contact us at our Fort Lauderdale office by calling 954.462.8850 or emailing at