Nebraska's prison contractor sues Iowa authorities in jail construction fight

The company chosen to build Nebraska’s new prison is suing other companies and Iowa authorities for at least $5.7 million, claiming they caused delays in its construction of a jail in Sioux City.

Nebraska announced in June it had chosen Hausmann Construction of Lincoln to build a new state prison in the city. This month, Iowa authorities claimed Hausmann and two other companies had caused millions of dollars in damages due to construction errors and delays in building the Woodbury County Law Enforcement Center in Sioux City.

Now, Hausmann has filed a federal lawsuit in Iowa, claiming authorities there and other companies involved in building the jail are responsible for the delays, and owe Hausmann at least $5.7 million.

The lawsuit says Woodbury County and its Law Enforcement Center Authority are aware of Hausmann's business projects, including the Nebraska prison, and have tried to interfere by making false claims about Hausmann to the media.

In response to Hausmann’s lawsuit, Woodbury County and its Law Enforcement Center Authority say they adamantly deny all company’s claims, but still want to resolve the dispute without litigation. Hausmann says it wants a jury trial.