News Summary
Portland Public Schools and Andersen Construction are embroiled in lawsuits regarding cost overruns and defects tied to the Benson High School modernization project. Originally budgeted at $269 million, costs have escalated to approximately $410 million. As PPS plans further high school modernizations, budget concerns mount, with projected costs rising to nearly $1.4 billion for additional projects. The school district’s recent decision to terminate its contract with Andersen underscores ongoing challenges, including potential impacts on contractor relationships in the local construction sector.
Portland, Oregon – Portland Public Schools (PPS) and Andersen Construction have engaged in dueling lawsuits, each claiming the other is responsible for cost overruns and construction defects associated with the modernization of Benson High School. The disputes arise after significant financial discrepancies have emerged from a project originally budgeted at $269 million, which has now ballooned to approximately $410 million.
The modernized Benson High School, a career and technical education magnet school, opened its doors in the fall of 2024. This project is part of a broader initiative aimed at modernizing multiple high schools in the Portland area. However, the rapidly escalating costs of this modernization endeavor have raised concerns for the district’s future projects.
PPS is currently grappling with budget challenges as it plans modernization efforts for Cleveland High, Jefferson High, and Wells High. The projected total costs for these three projects have now soared to nearly $1.4 billion combined. The district had initially planned to complete each high school modernization within a projected budget of $340-$360 million, which would have allowed for additional funds to address deferred maintenance at elementary and middle schools.
The school board had previously decided to pause the design processes for several of these upcoming projects to evaluate potential cost-saving measures. Recent redesign efforts have yielded savings by reducing square footage; however, these savings have been offset by increased material costs. The most recent estimates reflect costs of approximately $472 million for Cleveland High, $466 million for Jefferson High, and $449 million for Wells High.
Construction is projected to conclude by September 2029, assuming approval of a $1.8 billion bond measure to fund the projects. Students at Wells and Jefferson High will remain on-site during the construction phases, while students from Cleveland will temporarily relocate to the Marshall High School campus until their facilities are complete.
Each of the high school projects exceeds the original specifications set by the district, which resulted from feedback from the respective communities. Jefferson High intends to provide enhanced space for performing arts, whereas Cleveland High will incorporate additional classroom and athletic facilities.
Amidst these challenges, PPS has taken the step of terminating its contract with Andersen Construction for the Jefferson High modernization project. This decision was driven by significant changes in project scope and ongoing concerns about Andersen’s performance. Specific issues noted included poor schedule management, cost management ineffectiveness, and quality deficiencies that have become apparent during the Benson High project.
Under the terms of their contract, PPS retained the right to terminate Andersen without cause, provided they had compensated for preconstruction services. So far, the district has disbursed approximately $1.8 million for these services.
The budget for the Jefferson project escalated significantly due to complications arising from community feedback and initial design shortcomings. At one point, costs climbed to nearly $500 million before necessary cuts were implemented. A new contractor replacing Andersen might lead to challenges such as further delays; however, it is anticipated that this change could result in improved cost management.
An audit revealed that Andersen’s project management costs for Jefferson are considerably higher than those for other modernization projects, indicating potential areas where costs could be trimmed. Meanwhile, district officials have indicated that the termination of the contract may impact contractor relationships within the local construction sector. There remains concern that the unpredictability of PPS projects might dissuade other construction firms from bidding on future work, further complicating the district’s modernization efforts.
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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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