Lincoln, Nebraska, August 7, 2025
News Summary
Nebraska has commenced the construction of a new state prison in Lincoln, designed to house 1,512 inmates. This facility is set to replace the aging Nebraska State Penitentiary known for overcrowding and safety concerns. Hausmann Construction has been awarded the $312 million contract, with a completion timeline of 1,110 days aimed for mid-August 2028. The project is financially supported by a $350 million appropriation from the Nebraska Legislature, focusing on enhanced safety measures and improved inmate program access.
Lincoln, Nebraska Begins Construction of New 1,512-Bed Prison to Replace Aging State Penitentiary
Early signs of construction are being observed as Nebraska embarks on building a new state prison in Lincoln, intended to house 1,512 inmates. This facility will take the place of the existing, aging Nebraska State Penitentiary, which has faced criticism over the years for overcrowding and safety issues.
The Nebraska Department of Correctional Services recently finalized a significant contract with Hausmann Construction valued at $312,259,000. Construction work officially began last Tuesday, marked by initial activities such as cutting weeds and grass to prepare the site located north of Interstate 80 and adjacent to North 70th Street in Lincoln.
Hausmann Construction, a Lincoln-based contractor, was awarded the project after submitting the lowest bid among several competitors. Their bid of $313.3 million was notably lower than other proposals, including a joint venture of Sampson Construction/Caddell Construction at $344.3 million and Clark Construction/MCL Construction at $341 million.
This prison project has strong financial backing, confirmed by a $350 million appropriation from the Nebraska Legislature. There are commitments from state officials to keep the project within this budget. Hausmann Construction has a timeline of 1,110 days to substantially complete the prison, with a targeted completion date around mid-August 2028. A meeting between Hausmann representatives and state officials is scheduled for Friday to discuss pre-construction details.
The new facility is designed to enhance the safety of both inmates and staff, provide increased bed capacity, and improve access to inmate programs, responding to both correctional needs and improving overall institutional conditions. The director of Nebraska’s Correctional Services cited that bids for this facility came in well below the average prison construction costs witnessed in other states.
While moving forward with the new prison construction, Hausmann Construction is simultaneously involved in a legal dispute concerning a pending lawsuit related to a different project in Iowa. This lawsuit involves claims of non-payment and detrimental impacts on their reputation due to the actions of other parties in the Woodbury County Law Enforcement Center project.
To date, Nebraska has invested $33.8 million into the prison initiative, covering expenses for land acquisition and architectural design services from Omaha-based design firm DLR Group. The Nebraska Department of Correctional Services has pledged to review project efficiencies throughout the construction process to ensure that objectives are met and resources are used effectively.
Summary of Key Features of the New Prison Project
- Location: North of Interstate 80, adjacent to North 70th Street, Lincoln, Nebraska
- Bed Capacity: 1,512 beds
- Contractor: Hausmann Construction
- Total Cost: $312,259,000
- Funding: $350 million appropriation from the Nebraska Legislature
- Completion Timeline: 1,110 days, targeted for mid-August 2028
- Current Investment: $33.8 million (land acquisition and design work)
Frequently Asked Questions
What is the purpose of constructing a new prison in Nebraska?
The new prison aims to replace the aging Nebraska State Penitentiary, address overcrowding, and enhance security and inmate program access.
Who is responsible for the construction?
Hausmann Construction, based in Lincoln, has been awarded the contract for the new prison’s construction.
How much is the project expected to cost?
The total estimated cost of the project is $312,259,000, supported by a legislative appropriation of $350 million.
When is the new prison expected to be completed?
The prison is projected to be completed by mid-August 2028, following a timeline of 1,110 days.
What are some features of the new prison facility?
The facility will include 1,512 beds, enhanced safety features for staff and inmates, and space for various inmate programs.
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Additional Resources
- Nebraska Examiner: Hausmann Construction Chosen for New Prison
- KLKN TV: Nebraska Accepts $313 Million Bid for New Prison
- Journal Star: New Nebraska Prison Update
- Wikipedia: Prison Reform in the United States
- Google Search: Nebraska Prison Construction

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