Portland, September 18, 2025
News Summary
Portland Public Schools and Andersen Construction are embroiled in lawsuits over cost overruns and construction defects tied to the modernization of Benson High School. The project has ballooned to approximately $410 million, far exceeding its initial budget of $269 million. These legal disputes come as the district prepares for additional high school renovations, totaling nearly $1.4 billion. With concerns rising over project costs and management, PPS has halted further designs while exploring budget-saving measures amidst increasing material costs.
Portland
Portland Public Schools (PPS) and Andersen Construction have initiated dueling lawsuits, each attributing blame for substantial cost overruns and construction defects related to the modernization of Benson High School. The legal disputes arise following the completion of the high school, which serves as a career and technical education magnet school and opened for the academic year in fall 2024.
The Benson modernization project reached a total expenditure of approximately $410 million, significantly surpassing its original budget of $269 million. This increase in budget reflects broader challenges faced by PPS as they seek funding for the renovation of additional high schools in the district. PPS’s upcoming modernization projects for Cleveland High, Jefferson High, and Wells High are projected to cost nearly $1.4 billion combined, exacerbating financial concerns for school board members.
Prior to the lawsuits, school board members had paused the design process of these subsequent projects to investigate possible cost-saving measures as concerns about rising expenses mounted. Recent redesign efforts have managed to achieve some financial savings by reducing square footage, but these have been largely negated by increasing material costs.
The latest estimates for the modernization projects are daunting: Cleveland High is projected at $472 million, Jefferson High at $466 million, and Wells High at $449 million. Initially, district officials aimed to construct each high school within a budget of $340-$360 million to allocate additional funds for deferred maintenance addressing elementary and middle schools.
Construction on the mentioned high schools is anticipated to conclude by September 2029, pending the approval of a $1.8 billion bond measure that will fund the projects. Notably, students at Wells and Jefferson High will remain on their respective campuses during the renovations, while Cleveland students will be relocated to the Marshall High School campus for the duration of their construction.
The specific designs for each high school project have exceeded district specifications in various areas, reflecting requests from community stakeholders. For instance, Jefferson High intends to expand its performing arts facilities, while Cleveland’s redesign will include more classroom and athletic amenities.
In connection with these modernization efforts, PPS has terminated its contract with Andersen Construction for the Jefferson High project due to significant changes in project scope and concerns regarding the company’s performance. PPS raised issues around Andersen’s schedule and cost management and questioned the quality of their work, particularly following inefficiencies observed during the Benson High construction.
Under the terms of their contract, PPS has the authority to terminate Andersen without cause as long as they compensate for any preconstruction services rendered. To date, the district has paid Andersen $1.8 million. Complications in budgeting for the Jefferson project have dramatically escalated its costs, at one point approaching $500 million before project cuts were instituted in response to community feedback and initial design deficiencies.
The appointment of a new contractor for Jefferson High could lead to further delays but also the potential for improved cost management. Additionally, an audit has indicated that Andersen’s project management costs for Jefferson are higher than those associated with other similar modernization projects, with several areas identified where costs can be streamlined.
District officials have voiced concerns that terminating the contract may adversely affect contractor relationships within Portland’s construction industry, raising fears that unpredictable project budgets could deter other firms from bidding on future work.
Frequently Asked Questions
What are the main issues behind the lawsuits filed by Portland Public Schools and Andersen Construction?
The lawsuits revolve around significant cost overruns and construction defects in the modernization of Benson High School, with each party blaming the other for the issues that have arisen.
How much has the modernization project for Benson High School cost?
The total cost for the Benson High School modernization project reached approximately $410 million, significantly exceeding its original budget of $269 million.
What are the estimated costs for upcoming high school modernization projects?
The upcoming modernization projects for Cleveland High, Jefferson High, and Wells High are estimated to cost $472 million, $466 million, and $449 million, respectively, totaling nearly $1.4 billion.
What changes have been made to the projects in light of budget overruns?
To address budget overruns, recent redesigns have reduced the square footage of the projects; however, rises in material costs have offset these savings, complicating budgeting efforts.
Key Project Features
| Project | Estimated Cost | Original Budget | Completion Date |
|---|---|---|---|
| Benson High School | $410 million | $269 million | Fall 2024 |
| Cleveland High School | $472 million | $340-$360 million | September 2029 |
| Jefferson High School | $466 million | $340-$360 million | September 2029 |
| Wells High School | $449 million | $340-$360 million | September 2029 |
Deeper Dive: News & Info About This Topic
HERE Resources
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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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