Nebraska Breaks Ground on $312M State Prison Project

Construction is officially underway on Nebraska’s long-awaited new correctional facility. The state has finalized a $312 million contract with Hausmann Construction of Lincoln, which will be responsible for building the 1,512-bed prison north of Interstate 80 along North 70th Street.

The Nebraska Department of Correctional Services (NDCS) confirmed that the notice to proceed was issued to Hausmann on July 24, setting the project timeline into motion. The contract stipulates that the facility must reach substantial completion within 1,110 days—just over three years—which would bring the expected finish date to August 2028.

Substantial completion refers to the point at which the building is far enough along that it can be used for its intended function, even if minor work is still pending.

The facility is Nebraska’s first new prison construction in more than two decades and is intended to address persistent overcrowding in the state’s correctional system. Once complete, the new facility will help ease pressure on existing prisons and support better management of inmate populations.

The selection of Hausmann Construction has sparked some discussion given the company's prior work on a jail project in Sioux City, Iowa. That project has faced scrutiny over alleged construction errors and a delay exceeding one year, prompting Iowa officials to seek millions in damages.

Hausmann Construction, for its part, has responded with a lawsuit claiming at least $5.7 million in damages, asserting that Iowa authorities and other companies involved in the project bear responsibility for the problems.

Despite the legal dispute in Iowa, Nebraska corrections officials have expressed continued confidence in Hausmann.

“We are aware of the situation in Iowa but have full confidence in Hausmann’s ability to deliver a high-quality correctional facility for Nebraska,” the NDCS said in a statement.

The new prison will feature modernized housing units, enhanced safety features, and facilities for rehabilitation and vocational programming. It is designed not just to add capacity, but also to support long-term efforts toward reducing recidivism and improving inmate outcomes.

The prison will be built using a design-build model, which allows for streamlined coordination between the designers and contractors—an approach that is increasingly being used for large-scale public infrastructure.

Officials said the project will also bring significant economic benefits to the area, generating hundreds of construction jobs and boosting related industries during the three-year buildout.

The NDCS emphasized that more updates will be shared as major construction milestones are achieved.

Originally reported by Fred Knapp in Nebraska Public Media.