News Summary
Portland Public Schools and Andersen Construction are in legal battles over cost overruns and construction issues at Benson High School. The project’s costs have ballooned to $410 million, far surpassing the initial budget of $269 million, creating financial strain and delaying modernization efforts within the district. As PPS pauses future projects for cost-saving strategies, the termination of Andersen’s contract for Jefferson High further complicates the situation amid rising educational infrastructure costs.
Portland – Portland Public Schools (PPS) and Andersen Construction are engaged in legal disputes, with each party alleging responsibility for substantial cost overruns and construction flaws tied to the modernization of Benson High School. The conflicts underscore financial strains and delays that threaten broader educational modernization efforts across the district.
The much-anticipated modernized Benson High School, a magnet institution focusing on career and technical education, officially opened its doors in the fall of 2024. However, the project’s total costs soared to approximately $410 million, far exceeding the initial budget set at $269 million. This disparity has positioned both entities at odds, resulting in the current lawsuits.
This legal confrontation comes amidst an even larger modernization initiative within PPS, intended to revamp several high schools across Portland. Current projections for the modernization of Cleveland High, Jefferson High, and Wells High have skyrocketed, now estimated to total nearly $1.4 billion. Individual estimates for these schools are around $472 million for Cleveland, $466 million for Jefferson, and $449 million for Wells, each far exceeding previous financial plans that targeted budgets of $340 million to $360 million.
Given these soaring costs, PPS has paused the design process for future projects to investigate potential cost-saving measures. While recent redesign efforts have yielded savings by reducing square footage, rising material costs have countered these benefits. As the district grapples with its escalating budget for new constructions, school board members remain concerned about the implications on further modernization projects and deferred maintenance needs at elementary and middle schools.
Completion of the outdated high school renovations is projected for September 2029, pending the approval of a proposed $1.8 billion bond measure to fund these efforts. During the renovations, students at Wells and Jefferson High will remain on-site, while those at Cleveland High are set to relocate to the Marshall High School campus.
Community input has also influenced the specifications for the projects, with each high school expected to exceed district requirements in certain aspects. For instance, Jefferson High will incorporate more facilities for performing arts, while Cleveland High plans to enhance its classroom and athletic amenities.
In a significant development, PPS has recently terminated its contract with Andersen Construction regarding the modernization of Jefferson High. The decision stems from extensive scope adjustments in the project, alongside ongoing concerns about Andersen’s performance in managing schedules, costs, and construction quality. This termination highlights issues observed during the Benson High project, where complications were prevalent.
According to the contract stipulations, PPS retains the right to end the partnership with Andersen without cause after compensating for preconstruction services, which has amounted to approximately $1.8 million thus far. The budget issues at Jefferson High arose particularly from the complexity of integrating community feedback and rectifying initial design flaws, once approaching $500 million before necessary cuts and redesigns were adopted.
The hiring of a new contractor for the Jefferson project may lead to additional delays, but it is also believed this could enhance cost management moving forward. A recent audit indicated that Andersen’s project management expenses for the Jefferson project were higher than those registered for other school modernization efforts, pinpointing opportunities for cost reductions.
PPS officials acknowledge that ending the contract could have repercussions within Portland’s construction industry, potentially affecting relationships with contractors. There are concerns that the unpredictability associated with PPS projects may deter other firms from bidding on future construction opportunities, challenges that the district must navigate to ensure successful progression of its educational infrastructure goals.
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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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