As Portland Public Schools (PPS) continues efforts to rein in construction cost overruns, its contract with Andersen Construction for rebuilding Jefferson High School is under intense examination. Concerns have mounted over the firm’s handling of previous projects, particularly the ongoing renovation of Benson High School.

A confidential internal school board memo from late January, recently obtained and published by The Oregonian/OregonLive, offers a scathing assessment of Andersen’s performance at Benson. The memo cites concerns including alleged mismanagement of subcontractors, “deficient” oversight of the project schedule, and a construction timeline that failed to reflect actual progress on-site. The document also highlights the tragic death of subcontractor employee Samantha “Sam” Deschenes in June 2024, raising further questions about safety measures under Andersen’s supervision.

Calls to Terminate Andersen’s Contract

The unsigned memo recommended that PPS terminate Andersen’s construction manager-general contractor (CM/GC) contract for the Jefferson High School project and rebid the work. While the district has not taken formal action, the revelations in the memo have intensified scrutiny over Andersen’s role in PPS projects.

Despite The Oregonian/OregonLive obtaining the memo, PPS denied a public records request from the Daily Journal of Commerce (DJC) for the same document, citing legal exemptions. This has fueled speculation about internal debates within the district leadership regarding Andersen’s performance and the future of the Jefferson High project.

Andersen Defends Its Work

Brian Knudsen, president of Andersen’s Portland office, pushed back against the memo’s claims, defending the company’s track record on PPS projects.

“We’re very proud of the work we’ve done on Benson High School and the preconstruction work we’ve put together on Jefferson High School — and proud of the work we did on Grant High School,” Knudsen said Wednesday.

Andersen completed the $138 million renovation of Grant High School in 2019. While the Benson High School renovation is largely finished, the project remains open as some work is still ongoing, according to the memo.

In January, Andersen submitted $49 million in additional cost claims related to the Benson project. The school district, however, was displeased with the size of the claim.

“Although some of those costs are likely legitimate increases to the construction costs, it is reasonable to infer that Andersen inadequately managed construction changes with their subcontractors for such a large number of claims to have accumulated,” the memo stated.

Knudsen rejected the memo’s conclusions, calling it misleading.

“We do find it distorted and inaccurate, but I don’t want to get into the details,” he said. “It’s certainly one-sided, but we’re not going to get into it in a public forum.”

Uncertainty Over Jefferson High School’s Future

Beyond concerns about Benson, the memo detailed shifting cost projections for the Jefferson High project. Initially estimated at $514 million, the budget was reduced to $366 million after value engineering. However, costs later climbed back to $491 million before being reset to a $366 million target. The fluctuations have raised questions about financial oversight and the feasibility of staying within budget.

The PPS board discussed the Andersen memo in a closed-door executive session on Jan. 21. While the board convened a special meeting on Tuesday, it did not directly address Andersen’s contract or take any formal action regarding it. The next board meeting is scheduled for Tuesday, but as of press time, no agenda has been released.

As stakeholders await the board’s decision, the future of Jefferson High’s reconstruction—and Andersen Construction’s involvement in PPS projects—remains uncertain.

Originally reported by Chuck Slothower in DJC Oregon.