News Summary
Portland Public Schools and Andersen Construction are embroiled in lawsuits over cost overruns and construction defects in the modernization of Benson High School. The project, initially budgeted at $269 million, ended up costing approximately $410 million, raising concerns about project management. The financial challenges extend to other high school modernization projects in the district, with escalating costs prompting budget reevaluations and a potential pause in progress. Ongoing legal issues reflect the complexities of managing large-scale educational infrastructure projects in the region.
Portland, Oregon — Dueling Lawsuits Highlight Cost Overruns and Defects in Benson High School Modernization
Portland Public Schools (PPS) and Andersen Construction have filed separate legal actions, each accusing the other of responsibility for significant cost overruns and construction defects linked to the recently completed modernization of Benson High School. The dispute underscores financial and managerial challenges faced by the district amid ongoing and future school upgrades.
Background on Benson High School Project
The modernized Benson High School, a career and technical education magnet school, officially opened its doors in fall 2024. The project aimed to update facilities and expand program offerings but concluded at a total cost of approximately $410 million, far beyond the original $269 million budget estimated at project onset. This substantial overrun has raised questions about project management and contractor performance.
The Benson project is part of a larger district-wide effort to modernize Portland’s high schools, including Cleveland High, Jefferson High, and Wells High. Collectively, these projects are currently estimated to cost nearly $1.4 billion, creating significant budget challenges for district officials.
Financial and Planning Challenges for Upcoming High Schools
The district initially hoped to cap each high school’s modernization costs between $340 million and $360 million. However, recent estimates show northeast Portland’s Cleveland High at approximately $472 million, Jefferson High at about $466 million, and Wells High at nearly $449 million. These figures far exceed initial projections, prompting the district to pause progress and seek cost-saving measures.
Despite redesign efforts that reduced square footage to save money, rising material prices and construction costs have offset these savings, complicating budgeting efforts. Construction for these schools is slated to conclude by September 2029, contingent upon approval of a $1.8 billion bond measure aimed at funding the projects.
Operational Details During Construction
During construction, students at Wells and Jefferson High Schools are expected to remain on-site, while Cleveland High students will relocate to the Marshall High School campus during the modernization process. Each project has incorporated community input to exceed district specifications in certain areas; for instance, Jefferson High plans more space dedicated to performing arts, Cleveland will feature expanded classroom and athletic facilities, and Wells will include other neighborhood-specific enhancements.
Contract Terminations and Legal Disputes
In a recent development, PPS has terminated its contract with Andersen Construction for the Jefferson High School modernization. The district cited significant scope changes, performance concerns, and issues with Andersen’s schedule and cost management as primary reasons for the termination. The initial contract included provisions allowing PPS to end the agreement without penalty if certain preconstruction services had been paid; the district states it has already paid approximately $1.8 million.
The Jefferson project’s budget had previously surged toward $500 million due to complexities from community feedback and early design issues before subsequent cuts, highlighting the project’s escalating costs. The transition to a new contractor might lead to delays but could also improve cost efficiency and project oversight.
Audit Findings and Industry Impacts
An internal audit revealed that Andersen’s project management costs for Jefferson High exceeded those of other district projects, with certain areas identified as opportunities for cost reductions. The district acknowledges that ending its relationship with Andersen may impact local contractor relations, raising concerns about future bidding on PPS projects and overall industry stability.
Conclusion and Outlook
The ongoing legal actions and escalating costs exemplify the complexities involved in Portland’s school modernization efforts. While students and communities await the completion of these projects, district officials continue to grapple with legal, financial, and managerial challenges that may influence future school construction initiatives.
Deeper Dive: News & Info About This Topic
HERE Resources
White House Suspends School Field Trip Program Amid Renovations
Wichita School District Moves Forward with Facility Improvements
Major High School Expansion in Stillwater, Oklahoma
Lincoln County Public Schools Delays School Opening
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 RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake 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 North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
