Portland, Oregon, September 18, 2025
News Summary
Portland Public Schools and Andersen Construction find themselves embroiled in lawsuits tied to significant cost overruns and construction defects related to the Benson High School modernization project. With costs ballooning to approximately $410 million, the district now faces a daunting financial landscape as modernization efforts expand to Cleveland, Jefferson, and Wells High Schools, with estimates reaching around $1.4 billion. The situation raises concerns about future contractor relationships and the overall impacts on Portland’s educational infrastructure.
Portland, Oregon – Portland Public Schools (PPS) and Andersen Construction have initiated competing lawsuits, each party attributing blame for substantial cost overruns and construction defects associated with the modernization of Benson High School. This project, which serves as a career and technical education magnet school, was completed and opened to students in fall 2024.
The overall cost of the Benson High School modernization project soared to approximately $410 million, starkly surpassing the initial budget of $269 million. The rise in expenditures has raised significant concerns within the district as it embarks on further modernization projects across other high schools in Portland.
Currently, PPS is facing a daunting task in managing its financials, particularly with the upcoming modernization efforts at Cleveland High, Jefferson High, and Wells High, which together are now projected to cost around $1.4 billion. The implications of these ballooning estimates have led school board members to pause the design process to assess potential cost-saving measures due to the escalating costs. Although recent redesigns have managed to achieve savings by reducing square footage, the increase in material costs has effectively negated these gains.
Current estimates for Cleveland High, Jefferson High, and Wells High indicate budget projections of approximately $472 million, $466 million, and $449 million, respectively. Initially, district officials aimed to build each high school for around $340-$360 million to allow for additional funds to tackle deferred maintenance at elementary and middle schools. The expected timeline for construction completion for these high schools is set for September 2029, contingent on the approval of a proposed $1.8 billion bond measure to finance the projects.
The district faces logistical challenges as students from Wells and Jefferson will remain on-site during their respective modernization efforts, while students at Cleveland will be relocated to the Marshall High School campus throughout the construction period. Each high school project is also tailored to meet specific requests from the communities they serve, exceeding the district’s specifications in various aspects. For instance, Jefferson High plans to include expanded performing arts spaces, while Cleveland will feature additional classroom and athletic facilities.
In a marked shift, PPS has terminated its contract with Andersen Construction for the upcoming Jefferson High project due to significant alterations in project scope and deficiencies in Andersen’s performance. The district has raised multiple concerns regarding Andersen’s management of scheduling, cost, and work quality, specifically highlighting inefficiencies observed during the Benson High project. Under the contract’s terms, PPS had the right to terminate without cause, provided it compensated for pre-construction services, of which the district has paid $1.8 million thus far.
The Jefferson High project’s budget escalated alarmingly due to complexities rooted in community feedback and initial design shortcomings, which at one point pushed costs close to $500 million before cuts were implemented. While appointing a new contractor may lead to further delays, this move could also enhance cost management for the project.
An audit revealed that Andersen’s project management costs for Jefferson are markedly higher than those for comparable modernization projects, highlighting potential areas for cost reduction. District officials acknowledge that terminating the contract may have repercussions for future contractor relations within Portland’s construction industry, raising concerns that the unpredictability of PPS projects could deter other firms from bidding on future work.
FAQs
What are the main issues in the lawsuits between Portland Public Schools and Andersen Construction?
The lawsuits stem from substantial cost overruns and construction defects associated with the modernization of Benson High School, with each party blaming the other for these problems.
How much did the Benson High School modernization project cost?
The project cost approximately $410 million, significantly exceeding its original budget of $269 million.
What are the estimated costs for the upcoming high school modernization projects?
The combined estimated cost for the modernization of Cleveland High, Jefferson High, and Wells High is around $1.4 billion.
What are the anticipated timelines for completion of the new high school projects?
Construction is projected to be completed by September 2029, pending approval of a $1.8 billion bond measure for funding.
What changes have been made to the design of the high school projects?
Recent redesigns have cut square footage for cost-saving purposes, but increased material costs have diminished those savings.
What potential effects does the termination of Andersen Construction’s contract for the Jefferson High project have?
While it may lead to further delays, appointing a new contractor could result in better cost management, though it might also impact future contractor relations within the local construction industry.
Key Features Overview
| Feature | Details |
|---|---|
| Benson High School Modernization Cost | $410 million |
| Initial Budget | $269 million |
| Future High School Projects Estimated Cost | $1.4 billion |
| Cleveland High Project Cost Estimate | $472 million |
| Jefferson High Project Cost Estimate | $466 million |
| Wells High Project Cost Estimate | $449 million |
| Projected Completion Date for High Schools | September 2029 |
| Bond Measure for Funding | $1.8 billion |
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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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