News Summary
Portland Public Schools and Andersen Construction are in a legal battle over the modernization costs and construction defects at Benson High School. The project has faced budget overruns, skyrocketing to around $410 million, significantly over the initial $269 million budget. This has raised concerns for other upcoming renovations estimated to cost $1.4 billion. PPS has terminated its contract with Andersen for the Jefferson High project due to operational concerns, complicating future construction plans in the district.
Portland Public Schools and Andersen Construction Engage in Legal Battle Over Benson High School Issues
Portland, Oregon – Portland Public Schools (PPS) and Andersen Construction are embroiled in a legal dispute, each party accusing the other of responsibility for substantial cost overruns and construction defects linked to the modernization of Benson High School. The high school, which serves as a career and technical education magnet school, opened its doors to students in the fall of 2024.
The modernization project of Benson High School has seen costs soar to around $410 million, a figure significantly eclipsing the original budget of $269 million. This financial escalation has raised alarms within the district as it tries to manage the upcoming renovation projects for Cleveland High, Jefferson High, and Wells High, which are now estimated to cost nearly $1.4 billion combined.
Budgeting Challenges and Rising Costs
The school board previously halted the design process due to escalating financial concerns and has been actively seeking cost-saving measures. Recent redesign efforts have managed to achieve some reductions by decreasing square footage; however, these savings have been negated by rising material costs. The first budget estimates for the high schools now stand at $472 million for Cleveland, $466 million for Jefferson, and $449 million for Wells. The initial hope was to keep each project within $340-$360 million, allowing the district to allocate more funds to address deferred maintenance at elementary and middle schools.
Construction on these high schools is anticipated to be finalized by September 2029, contingent upon the successful approval of a $1.8 billion bond measure intended to fund these comprehensive modernization efforts.
Impact on Students and Communities
Students attending Wells and Jefferson High will continue their studies on-site while the modernization projects are underway. In contrast, Cleveland students will relocate to the Marshall High School campus during construction to minimize disruptions. Each modernization project aims to exceed district specifications based on community requests, with Jefferson High planning to enhance its performing arts facilities, and Cleveland expanding its classroom and athletic spaces.
Contract Termination and Project Management Concerns
PPS has recently severed ties with Andersen Construction concerning the Jefferson High project due to significant scope changes and concerns surrounding Andersen’s operational performance. Issues related to schedule management, cost controls, and the quality of work have been highlighted. The district noted that inefficiencies from the Benson High project have raised red flags regarding future collaborations.
Under the terms of their contract, PPS had the ability to terminate Andersen without cause, provided that preconstruction services had been compensated, which has totaled $1.8 million to date. The budget for the Jefferson project escalated dramatically, particularly as it dealt with complications arising from community feedback and initial miscalculations, culminating in projected costs nearing $500 million before necessary cuts were implemented.
Future of the Jefferson Project
With the termination of Andersen’s contract, the process of selecting a new contractor for the Jefferson project is underway. This change could potentially lead to further delays in construction; however, it may also bring improved management of costs. An audit conducted revealed that Andersen’s project management costs for Jefferson were considerably higher than those for other modernization projects, highlighting potential areas for financial reduction.
District staff acknowledge that the termination of the contract may have adverse consequences on contractor relations within Portland’s construction industry. There is a growing concern that PPS’s unpredictable project management may discourage other construction firms from participating in future bidding processes, which could further complicate the district’s efforts to modernize its schools.
Deeper Dive: News & Info About This Topic
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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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