The Nebraska Department of Correctional Services has chosen Hausmann Construction to lead the construction of the state’s new prison, with work expected to begin breaking ground in early fall as contract terms are completed.
Lincoln’s Hausmann submitted the lowest bid at $313.3 million, just ahead of two joint ventures: Sampson Construction/Caddell Construction ($344.3 million) and Clark Construction/MCL Construction ($341 million). Both of the runner-up partnerships included at least one Nebraska-based company.
“We are pleased to be working with a local company that shares our values and commitment to fiscal prudence,” said Corrections Director Rob Jeffreys. “Hausmann’s staff consists of high-performing subcontractors, some of which are local — keeping the work and the economic impact local in Nebraska.”
Allocation for the new prison
The Nebraska Legislature initially allocated $350 million for the new prison, set to replace the aging Nebraska State Penitentiary. However, some lawmakers raised concerns about rising construction costs and potential overruns. Even so, Jeffreys noted that the winning bid was well below similar projects in other states — some of which cost more than twice as much.
Upon completion, the new 1,512-bed prison will be located north of Interstate 80 off North 70th Street, just outside of Lincoln. Despite the optimism in the bidding, both government leaders and locals have questioned whether the project can be completed within the existing budget in the face of national trends in the cost of prison construction.
Read also: Balfour Beatty to construct a new $320M state prison in Georgia
Nebraska New State Prison Project Factsheet
Client: Nebraska Department of Correctional Services
Selected Contractor: Hausmann Construction (Lincoln, NE)
Project Value: $313.3 million
Legislative Budget Allocation: $350 million
Expected Construction Start: Early Fall 2025
Facility Specifications
Capacity: 1,512 beds
Location: North of Interstate 80 near North 70th Street, Lincoln area
Purpose: Replace aging Nebraska State Penitentiary
Design
DLR Group developed the architectural design for Nebraska’s new state prison. Their proposal emphasizes rehabilitation-focused spaces. It includes abundant natural light. The design features modern acoustics, these elements support programming and re-entry preparation.
Bidding Process Results
Winning Bid: Hausmann Construction submitted the lowest bid at $313.3 million and was selected for the project. The Lincoln-based firm beat out two competitive joint ventures in the bidding process.
Runner-up Bids: Sampson Construction partnered with Caddell Construction submitted a bid of $344.3 million. While Clark Construction teamed with MCL Construction bid $341 million. Both runner-up partnerships included at least one Nebraska-based company.
