Adam Handfinger, Co-Managing Partner, Peckar & Abramson, P.C

In an interview with Invest:, Adam Handfinger, co-managing partner at Peckar & Abramson, P.C., discussed the firm’s success, evolving risks in Florida’s construction industry, and the impact of tariffs and immigration policies. “Our goal is to help clients avoid litigation whenever possible, steering them toward practical solutions.”

What have been some of the most significant successes for Peckar & Abramson, P.C. over the past year?

We’ve had several successes firm-wide. Chambers USA once again ranked us Band 1 Level in Construction Law. P&A stands alone in its distinction of being named a Band 1 firm in Construction Law nationally, and has held that position every year since Chambers USA began awarding the recognition. Chambers also named us their “Construction Law Firm of the Year.” We also have a significant number of attorneys ranked by various directories and publications. I think it’s fair to say we’re the largest construction law firm and one of the most highly regarded in the country.

With 10 offices nationwide, we serve clients in all 50 states and have a strong presence in Europe and South America.

Success, for me and the team I manage, isn’t just about winning cases in court. While I’ve had my share of those experiences, our real success is in accurately predicting potential dispute outcomes and guiding our clients toward resolutions that make business sense. Our goal is to help clients avoid litigation whenever possible, steering them toward practical solutions.

Our practice covers the full spectrum of legal needs for general contractors and large construction managers. We negotiate contracts, handle insurance and bonding issues, and work on-site to resolve problems before they escalate.

That said, when litigation arises, we’ve had strong arbitration and trial results this past year. We’re also involved in major construction projects across South Florida.

How has the Florida real estate and construction landscape evolved?

For a time, condo development slowed while high-end multifamily rental projects surged. These buildings, designed for tenants renting by choice, were ideal for later condo conversion.

Now, many of them are being converted into condominiums. We’re handling several projects where clients originally built apartments, and they’re now being sold or converted. This shift is significant because condo association defect claims drive much of South Florida’s post-completion litigation.

Construction professionals — developers, general contractors, trade contractors, and design professionals — are all working to mitigate this risk. For a while, condo construction declined while multifamily rentals increased, but now, new condo projects and conversions are ramping up. Rising condo prices seem to be making the insurance costs worthwhile.

We’re also seeing increased work in renewable energy — solar and wind — as well as infrastructure projects across the U.S. South Florida is expected to see a surge in these areas. The construction market remains strong, and we hope economic conditions will continue to support it.

What are the biggest legal challenges facing contractors in Florida, and how can they navigate these obstacles?

Tariffs are a major concern. After COVID-19, material prices rose significantly, leading us to negotiate two key contract provisions: material price escalation clauses and pandemic-related enforcement measures.

Before the pandemic, contracts didn’t typically address pandemic-related delays and cost increases. Now, we spend a lot of time structuring provisions that allocate risk — some contracts require the general contractor to absorb the first 5-10% of price hikes, with anything beyond that shifting to the developer.

Tariff risks are now a top concern, and companies are reviewing contracts for potential protections.

Another pressing issue is immigration policy. The administration’s focus on deporting undocumented workers has already led to isolated ICE raids on active construction sites. Florida has strict worker documentation laws, but states like Texas reportedly have large numbers of undocumented workers. If those states lose labor, documented workers may migrate there, creating labor shortages and driving up costs in Florida.

Many contractors initially thought they wouldn’t be affected because their workers were documented. My response has been, “You’re going to feel it.”

Another challenge we’ve seen over the past year is subcontractor defaults. Some well-established subcontractors, strong performers for 25 years, are now struggling or failing to meet obligations due to cash flow issues, leadership transitions, and financial strain from post-pandemic material price inflation.

We’ve also seen an increase in employee stock ownership plans (ESOPs) in Florida construction companies. While beneficial, they can create financial pressure, leading to performance issues. Combined, these factors have contributed to a rise in trade contractor defaults, something we’re actively helping clients navigate.

What key considerations should businesses, contractors, and property owners be aware of?
One of the biggest concerns is builder’s risk insurance — particularly ensuring wind coverage for storms, a major risk in Florida. Over the past 12 to 18 months, I’ve seen multiple projects struggle to secure wind coverage on their policies.

Builder’s risk insurance covers damages to a project during construction. Without it, the owner bears significant financial risk, and it also presents challenges for contractors and trade subcontractors. Some projects have been completely unable to obtain wind coverage due to location, which is a serious issue.

Another growing concern is post-completion insurance coverage for multifamily rentals that may later convert to condominiums. Many developers purchase policies with a “residential exclusion,” leaving general contractors exposed to significant liability if defect claims arise after conversion.

For example, if a child falls down a defective staircase in a condominium, the contractor who built it may have no insurance coverage due to the exclusion. The risk is the same whether it’s an apartment or a condo, but because of the policy’s terms, the contractor loses critical protection.

Meanwhile, the developer who converted the project has likely sold the units, collected their profits, and dissolved the entity. Unlike developers, general and trade contractors remain in business and carry ongoing liability.

This has led to increasing tension between developers and contractors. Even if a contract states a project won’t be converted into a condo, a developer can still proceed with the conversion. By the time a contractor files a breach of contract claim, the developer’s entity may no longer exist.

One possible solution is recording a deed restriction at the start of the project prohibiting conversion, but most developers resist this. We’re actively working through this issue on multiple projects — some where developers secured proper insurance and others where they haven’t. It’s an evolving challenge with major implications for both sides.

What are your top priorities for the firm, and what are your strategic goals for the next two to three years?
A key focus is understanding how technology will reshape legal practice. We aim to stay ahead of these advancements to maximize value for our clients. One expected shift is in billing structures, largely due to technology’s impact.

With AI, we can better predict how long legal tasks will take. My team is working on ways to provide greater cost transparency, allowing clients to plan more effectively. This also helps us track how accurately our estimates align with actual fees — something that wasn’t as feasible before.

Regarding firm growth, we have a deep, diverse, and talented team. We focus on promoting from within, allowing newer lawyers to rise through the ranks. Several Miami office attorneys started with little construction law experience and are now key partners — something I take great pride in.

Talent retention is a major challenge for all law firms. Our success depends on the expertise of our people, so keeping top talent is crucial. There’s constant pressure to raise salaries while maintaining competitive client rates and compressing profit margins. Our priority is continuing to grow our team while supporting and developing existing attorneys.

We typically hire lawyers with prior experience — either in construction or another field — rather than straight out of law school. This has helped us build a well-rounded team. My goal is to maintain this model over the next five years, just as we have over the past five. We have a strong mix of seasoned attorneys and rising talent, and I want to keep expanding on that foundation.