News Summary
Portland Public Schools and Andersen Construction are embroiled in lawsuits over cost overruns and construction defects for Benson High School’s renovation. The project’s expenses have soared to $410 million, far exceeding the initial budget of $269 million. As PPS faces fiscal challenges, concerns grow about the impact on upcoming high school modernization projects estimated to cost nearly $1.4 billion. With project delays and contract terminations, the district aims to enhance educational infrastructure while managing costs and community needs.
Portland – Portland Public Schools (PPS) and Andersen Construction have engaged in dueling lawsuits, accusing each other of responsibility for significant cost overruns and construction defects related to the renovation of Benson High School. The modernization project, which was completed in fall 2024, has seen its expenses balloon to approximately $410 million, far surpassing the original budget of $269 million.
The Benson High School project is part of a broader initiative aimed at modernizing several high schools in the Portland area. This initiative has encountered increasing challenges as PPS grapples with budgeting for upcoming modernization projects at Cleveland High, Jefferson High, and Wells High, which are now collectively estimated to cost nearly $1.4 billion.Â
Concerns over rising costs led school board members to pause the design process to seek out cost-saving measures. While redesign efforts have managed to cut some square footage, increases in material costs have offset these savings. The latest estimates suggest Cleveland High will cost approximately $472 million, Jefferson High about $466 million, and Wells High around $449 million. PPS had originally aimed to keep each high school’s building costs between $340 million and $360 million to free up funds for deferred maintenance for elementary and middle schools.
Projected completion for the high school modernization projects is set for September 2029, pending approval of a $1.8 billion bond measure intended to fund the renovations. During construction, students at Wells and Jefferson will remain on-site, while those at Cleveland will relocate to the Marshall High School campus.
The specific needs of the respective communities have influenced the high school projects, which often exceed the district’s specifications. For example, Jefferson plans to add more space dedicated to performing arts, while Cleveland intends to incorporate additional classroom and athletic facilities.
Recently, PPS terminated its contract with Andersen Construction for the modernization of Jefferson High due to substantial changes in project scope and concerns regarding Andersen’s performance. Issues cited include poor schedule management, cost oversight, and quality of work, with inefficiencies from the Benson High project particularly noted.
The contract with Andersen allowed PPS the option to terminate without cause if preconstruction services were compensated; the district has paid approximately $1.8 million to date. The budget for the Jefferson project saw a sharp increase attributed to complexities stemming from community feedback and initial design flaws, with costs nearly reaching $500 million before subsequent budget cuts were implemented.
PPS has expressed optimism that hiring a new contractor for the Jefferson project might counterbalance anticipated delays by promoting better cost management. However, an audit highlighted that Andersen’s project management costs for Jefferson were higher than those for other ongoing modernization projects, revealing areas where costs could be reduced.
District staff have acknowledged potential implications of terminating the contract for future contractor relations within the Portland construction industry. There are concerns that the unpredictability associated with PPS projects might discourage other construction firms from bidding on forthcoming work, which could inhibit the progress of future modernization projects.
As PPS moves forward with its modernization strategy amid fiscal challenges, the resolution of the legal disputes with Andersen Construction will be critical for ensuring timely and cost-effective renovations at Cleveland, Jefferson, and Wells High Schools. Stakeholders closely monitor the situation as the district strives to enhance educational infrastructure while managing budgets and community expectations.
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HERE Resources
White House Suspends School Field Trip Program Amid Renovations
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
Author: STAFF HERE INDIANAPOLIS WRITER
The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
