What Damages Can You Recover in a Florida Construction Dispute?

A practical guide to repair costs, unfinished construction, project delays, unpaid work, construction liens, and other remedies under Florida law.

When a construction project goes wrong, what can you actually recover?

A contractor abandons a renovation halfway through. A newly installed roof begins leaking. A homeowner refuses to pay the final invoice. A subcontractor completes its work but never receives payment.

Although these situations involve different legal issues, they often lead to the same question:

What financial recovery does Florida law allow?

Construction disputes can involve the cost of correcting defective work, completing an unfinished project, recovering unpaid invoices, compensating for delays, or addressing a reduction in property value. In some cases, attorney’s fees and interest may also be available.

But not every financial loss is legally recoverable. The construction contract, the nature of the breach, the timing of the loss, the available evidence, and applicable statutory requirements can significantly affect the outcome.

Understanding these distinctions is an important first step for property owners, contractors, and subcontractors evaluating a construction dispute in Florida.

The cost of repairing defective construction

When construction work does not comply with the parties’ agreement, the reasonable cost of correcting the defective work is often the starting point for calculating damages.

Common examples include improperly installed roofing, defective plumbing or electrical work, water intrusion, nonconforming finishes, and construction that fails to meet agreed specifications.

The Florida Supreme Court addressed the governing measure of damages in Grossman Holdings, Ltd. v. Hourihan, 414 So. 2d 1037 (Fla. 1982). Under the rule adopted by the Court, damages for defective or unfinished construction ordinarily may be measured by the reasonable cost of completing or correcting the work in accordance with the contract, provided correction is feasible and does not involve unreasonable economic waste.

That distinction matters because a property owner is not automatically entitled to recover every expense associated with a construction problem.

The proposed repairs must be reasonably necessary to address the contractual deficiency, and the amount claimed must be supported by appropriate evidence. For example, replacing a defective kitchen installation may be justified, but upgrading the kitchen beyond the originally agreed specifications may not be recoverable as part of the correction costs.

The objective is generally to compensate the injured party for the contractual loss, not to provide improvements beyond the performance originally promised.

When the reduction in property value becomes the measure of damages

Some construction defects are expensive to correct because the necessary repairs would require substantial demolition or destruction of otherwise usable completed construction.

In those circumstances, Florida law recognizes an alternative measure of damages known as diminution in value.

Rather than awarding the cost of reconstruction, damages may be measured by the difference between the value the property would have had if the contract had been properly performed and the value of the performance actually received.

This alternative is associated with the doctrine of unreasonable economic waste recognized in Grossman Holdings.

However, the fact that a repair is expensive does not automatically make diminution in value the appropriate measure. Whether the proposed correction would involve unreasonable economic waste depends on the particular construction, the nature of the defect, the work required, and the supporting evidence.

In some disputes, qualified construction professionals and property valuation experts may be needed to determine which measure properly addresses the loss.

Recovering the cost of completing an abandoned project

When a contractor stops working before completing the agreed construction, a property owner may need to retain a replacement contractor.

In an appropriate breach-of-contract claim, the reasonable cost of obtaining the promised completion can form part of the owner’s damages. But the calculation must account for the portion of the original contract price that remains unpaid and is no longer legally payable.

Consider a simplified example.

A contractor leaves a project unfinished. Hiring another contractor to complete the originally promised work will reasonably cost $45,000. The owner still has $25,000 of the original contract price available to apply toward completion.

The potential completion-cost difference is $20,000, not automatically the entire $45,000.

The actual amount depends on the original agreement, payments already made, the remaining scope of work, approved changes, applicable credits, and the circumstances surrounding the work stoppage.

Before hiring a replacement contractor, an owner should also consider contractual termination provisions, notice requirements, outstanding subcontractor obligations, and possible construction liens.

For a closer look at these issues, our companion article, Contractor Abandoned Your Project in Florida?, explains the practical steps property owners should consider before terminating an agreement, replacing a contractor, or pursuing reimbursement.

Why the date of breach matters when calculating damages

One of the most important—and sometimes overlooked—issues in a Florida construction dispute is the date used to measure damages.

A property owner may obtain a detailed repair estimate today for defective work performed several years ago. Although that estimate may help establish the scope of necessary repairs, it does not necessarily prove the legally recoverable amount.

Florida courts generally measure breach-of-construction-contract damages as of the relevant date of breach.

Two Florida appellate decisions illustrate the importance of this rule.

In Bandklayder Development, LLC v. Sabga, 406 So. 3d 265 (Fla. 3d DCA 2025), the Third District Court of Appeal reversed a construction-damages judgment because the evidence established repair costs years after the relevant breach dates, without competent evidence of the damages as of the time of breach.

Similarly, in Vuletic Group L.L.C. v. Malkin, 418 So. 3d 627 (Fla. 4th DCA 2025), the Fourth District reversed a damages award where the homeowners relied on a repair estimate prepared years after the alleged breach.

These decisions demonstrate why obtaining a current estimate, while useful, may not be enough to establish recoverable contract damages.

Construction costs can change substantially over time. Depending on the claim, counsel and an appropriate construction-cost expert may need to establish historical pricing and identify the correct valuation date.

Different legal causes of action may present different issues, so the applicable rule should be evaluated in relation to the specific claim asserted.

Can you recover financial losses caused by construction delays?

Construction delays can create losses beyond the cost of correcting or completing the work.

A property owner may be unable to occupy a home, rent a completed property, use a commercial space, or proceed with another planned project.

Depending on the circumstances, Florida law may permit recovery for the reasonable rental value or lost use of property during a proven delay period.

In Fisher Island Holdings, LLC v. Cohen, 983 So. 2d 1203 (Fla. 3d DCA 2008), and Gonzalez v. Barrenechea, 170 So. 3d 13 (Fla. 3d DCA 2015), Florida appellate courts addressed rental-value damages arising from construction-related delays.

A claim for this type of loss ordinarily requires reliable evidence identifying the relevant delay period, its cause, and the reasonable rental value of the affected property.

Other financial losses may be more difficult to establish.

Additional financing expenses, carrying costs, lost business opportunities, and lost profits are not automatically recoverable merely because construction took longer than expected. Recovery can depend on causation, foreseeability, reasonable certainty, mitigation, and the terms of the contract.

Construction agreements may also contain provisions limiting or excluding consequential damages.

In Keystone Airpark Authority v. Pipeline Contractors, Inc., 266 So. 3d 1219 (Fla. 1st DCA 2019), the court considered the particular contractual responsibilities of a service provider when determining whether claimed repair costs were consequential damages subject to a contractual exclusion.

Accordingly, the same financial loss may require different treatment depending on the party being sued, the contractual relationship, and the specific obligations allegedly breached.

What can contractors and subcontractors recover for unpaid work?

Construction disputes are not limited to claims brought by property owners.

Contractors and subcontractors may also pursue payment when customers fail to pay for completed work, terminate an agreement, dispute change orders, or refuse to compensate for additional services.

Depending on the contractual relationship and the circumstances, potential recovery may include unpaid contract amounts, supported expenditures and lost profits arising from partial performance, or the reasonable value of services and materials under an available equitable theory.

Florida courts have addressed these distinctions in cases including Marshall Construction, Ltd. v. Coastal Sheet Metal & Roofing, Inc., 569 So. 2d 845 (Fla. 1st DCA 1990), and Paschen v. B&B Site Development, Inc., 311 So. 3d 39 (Fla. 4th DCA 2021).

Disputed change orders can create additional complications.

For example, the original contract may require written authorization before extra work begins. The parties may disagree about whether the work was included in the original scope, requested as an addition, or accepted without a formal change order.

The existence of an enforceable contract can also affect whether equitable claims, such as quantum meruit or unjust enrichment, are available for the work at issue.

A proper evaluation therefore begins with the agreement, the work actually performed, the communications between the parties, and the documentation supporting the amount sought.

Construction liens, attorney’s fees, and prejudgment interest

In addition to traditional contract damages, construction disputes may involve statutory payment remedies, attorney’s fees, and interest.

Construction liens. Florida’s Construction Lien Law, Chapter 713, provides important remedies for qualifying contractors, subcontractors, suppliers, and other eligible lienors. However, the law imposes specific notice, recording, and enforcement requirements.

A construction lien is not an automatic guarantee of payment. A lien must be legally supported, and improper or willfully exaggerated liens can expose the claimant to significant consequences.

Attorney’s fees. Florida generally requires a contractual, statutory, or other independent legal basis for recovering attorney’s fees.

Section 713.29, Florida Statutes, provides for reasonable prevailing-party attorney’s fees in qualifying construction lien and bond-claim proceedings. Section 57.105(7) may also make certain contractual fee provisions reciprocal when its requirements are satisfied.

Whether fees are recoverable depends on the applicable provision, the claims presented, and the outcome of the proceeding.

Prejudgment interest. In some cases, a party may recover interest on an established financial loss dating from the legally relevant loss date.

The Florida Supreme Court discussed the governing principles in Argonaut Insurance Co. v. May Plumbing Co., 474 So. 2d 212 (Fla. 1985).

The availability and calculation of interest require consideration of the underlying loss, the applicable dates, and the governing legal rules.

Does Florida require notice before filing a construction-defect lawsuit?

In many construction-defect disputes, Florida law requires a pre-suit notice process before litigation begins.

Chapter 558, Florida Statutes, establishes procedures intended to provide qualifying construction professionals with notice of alleged defects and an opportunity to inspect, respond, and potentially resolve claims before litigation.

Under § 558.004, the general notice period is at least 60 days before filing suit. For associations representing more than 20 parcels, the general period is 120 days, subject to the statute’s particular requirements and exceptions.

The notice must identify the nature and known location of the alleged defects with reasonable detail.

However, not every construction dispute is governed by the same pre-suit requirements. A claim for unpaid invoices, a dispute over a change order, and a claim involving an unfinished project may require different analyses.

Contractual notice and opportunity-to-cure provisions must also be considered separately.

Importantly, serving a Chapter 558 notice should not be assumed to preserve all filing deadlines. Section 558.004 expressly provides that the notice does not toll any statute of repose.

Understanding the applicable procedures early can help avoid unnecessary disputes over notice, timeliness, and compliance with contractual requirements.

What evidence helps establish construction damages?

Even when a contractual breach or construction defect can be established, a claim may fail if the requested damages are not supported by competent evidence.

Depending on the nature of the dispute, useful records may include:

• The signed construction contract, plans, specifications, warranties, change orders, and payment schedule.

• Dated photographs and videos documenting defective or incomplete work.

• Emails, text messages, notices, demand letters, and other project communications.

• Invoices, receipts, payment records, account statements, and remaining contract balances.

• Detailed repair or completion estimates identifying the scope of work and applicable pricing.

• Inspection reports, permits, expert evaluations, and property appraisals where appropriate.

• Documentation supporting lost use, rental value, replacement accommodation, or other claimed financial losses.

The timing of this evidence is particularly important. A contemporary repair estimate may establish what work is currently needed, but a construction-contract claim may also require evidence connecting the claimed amount to the legally relevant breach date.

Reliable documentation helps establish not only the amount of loss, but also causation, reasonableness, and whether the claimed damages overlap with other requested relief.

When is pursuing a construction dispute worthwhile?

Not every construction disagreement warrants immediate litigation.

The financial value of a potential claim is an important consideration, but it is not the only one.

The strength of the underlying contract, available evidence, possible defenses, recoverable damages, attorney’s fees, anticipated costs of litigation, and the opposing party’s ability to satisfy a judgment can all influence the appropriate course of action.

In some circumstances, early legal evaluation and a well-supported demand may provide a more practical path toward resolution. Other disputes, particularly those involving significant defects, abandoned projects, unpaid contract balances, or contested construction liens, may require more extensive representation.

The appropriate strategy depends on the specific facts, available remedies, and the parties’ objectives.

Discuss your Florida construction dispute with Beckwith Legal

Construction disputes can become complicated when contractual obligations, technical construction issues, payment records, and statutory requirements overlap.

Beckwith Legal, PLLC, based in St. Petersburg, Florida, assists property owners, contractors, and other construction participants with selected disputes involving defective work, incomplete construction, construction contracts, payment disagreements, liens, and related claims.

If you are facing a construction dispute, understanding the available remedies and evaluating the supporting documents can help you make informed decisions about the next steps.

To discuss your situation, contact Beckwith Legal (https://www.beckwithlegal.com/contact), learn more about our Construction Law & Disputes practice, or ask about our Introductory Service for an initial legal evaluation.

This article provides general educational information about Florida law and is not legal advice. Legal rights, deadlines, damages, and available remedies depend on the particular facts, contract terms, and applicable law. Reading this article does not create an attorney-client relationship. Consult a qualified attorney regarding your specific circumstances.