Portland, Oregon, September 18, 2025
News Summary
Portland Public Schools and Andersen Construction are embroiled in a legal dispute regarding cost overruns and construction defects from the Benson High School modernization project. The budget has ballooned to $410 million, far exceeding the original $269 million estimate. This situation has sparked broader budgeting concerns for other high schools, with combined projected costs exceeding $1.4 billion. Completion of these upgrades is projected for September 2029, pending the approval of a significant bond measure.
Portland, Oregon – Portland Public Schools (PPS) and Andersen Construction are engaged in a legal battle, each blaming the other for substantial cost overruns and construction defects linked to the modernization of Benson High School. The ongoing conflict arises from a project that was supposed to modernize the school into a leading career and technical education magnet school, which opened its doors in the fall of 2024.
The total expenditure for the Benson High School modernization project stands at approximately $410 million, significantly higher than the original budget of $269 million. This escalation in costs has raised alarms as it is part of a broader initiative to upgrade multiple high schools across Portland.
Budgeting difficulties have emerged at PPS concerning forthcoming modernization efforts at Cleveland High, Jefferson High, and Wells High, which are now projected to cost nearly $1.4 billion combined. Previous school board discussions led to a pause in the design phase as administrators sought ways to reduce costs in light of growing concerns about the financial implications.
Recent redesigns of the projects have provided modest savings by scaling back on square footage. However, these benefits have been overshadowed by soaring material costs. Current cost estimates indicate Cleveland High will need around $472 million, Jefferson High approximately $466 million, and Wells High $449 million to complete their upgrades. Originally, the district aimed to budget each project at around $340-$360 million to facilitate additional funding for deferred maintenance at the district’s elementary and middle schools.
Completion of construction on these high schools is anticipated by September 2029, conditional upon the approval of a $1.8 billion bond measure intended for funding. Students at Wells and Jefferson High will remain on-site during renovations, whereas Cleveland’s students will relocate to the Marshall High School campus throughout the construction period.
Each high school renovation exceeds district specifications in various ways, responding directly to community input. For example, Jefferson High will incorporate enhanced spaces for performing arts, while Cleveland High will add more classrooms and athletic facilities.
A significant point of contention arose when PPS terminated its contract with Andersen Construction regarding the Jefferson High modernization project. This decision was prompted by substantial scope changes and concerns about Andersen’s management performance. The district cited issues surrounding schedule management, cost oversight, and work quality, particularly stemming from inefficiencies experienced during the Benson High project.
PPS has already disbursed $1.8 million for preconstruction services, which legally allows the district to terminate Andersen’s contract without cause. The budget for the Jefferson project had inflated dramatically, approaching $500 million at one juncture due to complexities from community feedback and initial design failures, although considerable cuts were made afterward.
Finding a new contractor for the Jefferson High project may introduce additional delays, but it could also yield improved cost management. An audit revealed that Andersen’s project management costs for Jefferson significantly exceeded those of other modernization projects, indicating potential areas for better cost control.
District officials acknowledged that terminating the contract with Andersen might strain relations with contractors in Portland’s construction sector. Concerns linger that the unpredictability of PPS projects could discourage other companies from vying for future contracts.
FAQs
What prompted the lawsuits between Portland Public Schools and Andersen Construction?
The lawsuits arise from disputes over cost overruns and construction defects related to the modernization of Benson High School, with each party blaming the other for the issues.
What is the total cost of the Benson High School modernization project?
The total cost reached approximately $410 million, which exceeded the original budget of $269 million.
How are future school modernization projects being impacted?
Due to challenges in budgeting, PPS is now estimating costs for upcoming projects at Cleveland, Jefferson, and Wells High to be nearly $1.4 billion combined.
When is the projected completion date for the modernized high schools?
Construction is projected to be completed by September 2029, contingent upon the approval of a $1.8 billion bond measure.
What changes are being made to the high school projects?
Recent redesigns have aimed to cut costs by reducing square footage, although this has been offset by rising material costs.
| School | Projected Cost | Budget Goal | Completion Date |
|---|---|---|---|
| Cleveland High | $472 million | $340-$360 million | September 2029 |
| Jefferson High | $466 million | $340-$360 million | September 2029 |
| Wells High | $449 million | $340-$360 million | September 2029 |
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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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