Balfour Beatty is facing significant legal troubles linked to allegations over unsafe housing conditions at Naval Air Station (NAS) Key West.
Hundreds of current and former residents have come forward, launching lawsuits that claim the company concealed hazardous conditions and neglected needed repairs, resulting in wide-ranging health and economic impacts for military families.
The lawsuits — which now include more than 270 plaintiffs — allege Balfour Beatty systematically failed to address critical problems such as mold, water damage, structural defects and the presence of toxic substances like lead paint and asbestos.
Plaintiffs include both military and civilian families who, according to the claim, experienced collapsed ceilings, HVAC failures, plumbing issues and persistent infestations. Some families report severe illnesses, loss of property and costly temporary relocations when their homes became uninhabitable.
Former Balfour Beatty employees have also testified about fraudulent and deceptive maintenance practices, including instructions to mislead Navy housing inspections, mask visible damages and manipulate audit records. The suit further asserts that systematic failures and a culture of negligence have persisted for years, with some internal whistleblowers facing retaliation.
Balfour Beatty denies wrongdoing and stated its intent to defend itself vigorously, maintaining that resident safety is a priority.
However, this lawsuit follows prior scandals; in 2021, Balfour Beatty paid over $65 million for defrauding the U.S. military over housing repairs. As the Navy budgets tens of millions for future renovations, many affected service members now rely on private rentals, straining Key West’s housing market further.
Key West’s lawsuit is now the largest military housing legal action to date in the U.S., representing a turning point for scrutiny of privatized housing nationwide. Advocates say it has galvanized service members across the country to pursue justice and demand reform for healthier, safer living conditions for all military families.
Balfour Beatty’s recent legal controversies over unsafe living conditions at the Key West naval station pose major risks to public trust as they compete for the Fort Lauderdale City Hall contract.
Persistent allegations of negligence and concealment may erode confidence among city leaders and residents, who expect transparency and integrity from public contractors. This loss of trust could cast doubt on the firm’s suitability for stewarding civic projects of such significance.