News Summary
Portland Public Schools is embroiled in a legal dispute with Andersen Construction regarding the modernization of Benson High School, leading to soaring project costs and budget overruns. The modernization project has ballooned to approximately $410 million, exceeding its original budget of $269 million. PPS is also grappling with significant financial challenges as it prepares to modernize additional high schools, with current estimates for future projects nearing $1.4 billion. The district has halted design processes to seek cost-saving measures amid rising expenses.
Portland – Portland Public Schools (PPS) and Andersen Construction have engaged in a legal battle over the modernization of Benson High School, with each party accusing the other of contributing to significant cost overruns and construction defects. The total expenditure for the Benson High School modernization project has soared to approximately $410 million, far exceeding the original budget of $269 million.
The modernized Benson High School, which is a career and technical education magnet school, opened its doors in fall 2024. The school is part of a broader initiative to modernize several high schools in Portland. This initiative has encountered a series of financial challenges, particularly affecting budgeting for upcoming modernization projects at Cleveland High, Jefferson High, and Wells High.
With those projects now projected to cost nearly $1.4 billion combined, PPS has faced mounting pressure. The school board previously paused the design process for these projects to explore potential cost-saving measures amid rising costs. Although recent design modifications have led to some savings through reductions in square footage, increased material costs have negated those savings.
The latest estimated costs for the Cleveland, Jefferson, and Wells High projects stand at approximately $472 million, $466 million, and $449 million, respectively. Originally, district officials had aimed to keep the budget for each high school modernization between $340 million and $360 million. This would have allowed for additional funding for deferred maintenance at elementary and middle schools across the district.
Construction on the three high school projects is expected to be completed by September 2029, contingent on the approval of a proposed $1.8 billion bond measure designed to fund these initiatives. Throughout the modernization process, students at Wells and Jefferson will remain on-site, while Cleveland students will relocate to the Marshall High School campus during construction.
Each high school modernization project is tailored to meet community requests, resulting in some projects exceeding initial specifications. For instance, Jefferson High plans to incorporate more space dedicated to performing arts, while Cleveland will expand its classroom and athletic facilities to cater to evolving educational needs.
In addition to the existing lawsuits, PPS has terminated its contract with Andersen Construction for the Jefferson High modernization project. This decision was driven by significant changes in project scope coupled with ongoing concerns regarding Andersen’s performance. PPS cited issues related to schedule management, cost management, and the overall quality of work, particularly pointing to inefficiencies resulting from the Benson High project.
The contract between PPS and Andersen allowed for termination without cause, provided compensation for preconstruction services. To date, the district has paid $1.8 million in this regard. During the Jefferson project’s planning phase, the budget escalated dramatically, largely due to complexities arising from community feedback and initial design failures, at one point neared $500 million before being revised.
Looking ahead, the selection of a new contractor for the Jefferson project may lead to potential delays but could ultimately improve cost management. An audit conducted on the Jefferson project revealed that Andersen’s project management costs exceeded those of similar modernization projects, with several opportunities to reduce costs highlighted.
However, district staff noted that terminating the contract could have repercussions for contractor relationships within Portland’s construction industry. There are growing concerns that the unpredictability of PPS projects might dissuade other construction firms from participating in future bids, further complicating the district’s efforts to modernize its facilities.
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Additional Resources
- OregonLive: Portland Public Schools vs. Andersen Construction
- Wikipedia: Portland Public Schools
- DJCOregon: PPS Scrutinizes Andersen Construction
- Google Search: Andersen Construction Portland
- OregonLive: Portland High Schools Cost Estimates
- Google Scholar: Cost Overruns in School Construction
- OregonLive: PPS Terminates Contract with Construction Firm
- Encyclopedia Britannica: Education in the United States
- Construction Dive: Andersen’s Lawsuit
- Google News: Cost Overruns in Education Projects
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