Solving for Cost: Collaboration and Innovation Help Correctional Projects Beat Budget Pressures

IMAGE: Prefabrication of cells is an option related to efficiencies that result in project savings. The interior of the steel cell pictured was prefabricated offsite and is complete once it is placed and hooked up to plumbing and electrical. CREDIT: Courtesy of PaulyJail Building Company, Metro-Davidson Criminal Justice Center

By Darrick Hutchens, CFP

Correctional construction projects across the country face a perfect storm of rising labor costs, unpredictable material lead times and increased scrutiny over taxpayer-funded budgets. But for those willing to adapt, there are real opportunities to build smarter, faster and more efficiently—without compromising quality.

To understand how top firms are navigating these pressures, I spoke with three industry veterans—Gerry Guerrero, global director, Justice + Civic, of HDR; TJ Rogers, chief executive officer of Accurate Controls; and Jared Bailey, vice president of operations for Pauly Jail Building Company. Their message was clear: Early collaboration, technology integration and targeted innovation reduce cost exposure. The big takeaway? When owners bring in the right partners early, everyone wins.

Design-Assist: A Strategic Cost-Control Tool

One of the most effective cost-containment strategies is also one of the simplest: Start earlier and work together.

“The most successful projects we see are those using a design-assist model,” said Bailey. “We stay involved throughout the entire design phase—budgeting from schematic documents all the way through 100% construction drawings. It reduces surprises and keeps projects insulated from cost escalation.”

Unlike traditional design-bid-build—where contractors are selected based on lowest bid after the design is complete—design-assist teams are chosen based on qualifications and brought in early during the design phase. This collaborative approach allows those with field expertise to help optimize designs for cost, constructability and long-term efficiency. It reduces surprises, change orders and costly redesigns by aligning the team before construction begins.

Guerrero echoed this sentiment: “When contractors and specialty subs are brought in from day one, they can help navigate real-time availability and pricing. That helps architects make smart design choices that don’t require value-engineering later.”

Prefabrication Delivers Predictable Results

All three experts pointed to off-site prefabrication as a powerful option to mitigate budget risk.

“Prefab cells, fire-protection assemblies, rear-chase walls … we’ve been doing [these things] for [more than] 15 years,” said Bailey. “When you move construction to a controlled environment, you reduce labor hours, improve quality, and avoid costly weather and scheduling setbacks.”

“We’re seeing the stigma of prefab disappear fast,” added Guerrero. “Counties are realizing they get a better product, faster. It’s plug-and-play compared to traditional builds. That’s a huge deal when you’re short on skilled labor.”

Key advantages of off-site prefabrication include:

• Reduced jobsite labor needs and on-site delays
• Higher product quality and consistency
• Faster installs for shorter project durations
• Predictable lead times and fewer change orders

Technology as a Cost Deflator

While many project materials are getting more expensive, facility technology is becoming more efficient and affordable, especially when integrated early.

“Security electronics used to represent 6% of total project costs,” said Rogers. “Now we’re closer to 4%—and we can do more for less. Our new systems include remote diagnostics, so in many cases we can resolve issues without sending a technician onsite.”

Rogers compared the shift to Tesla’s approach: “You don’t take your Tesla in for service every time something happens. A lot of it is fixed while it’s sitting in your garage. That’s where we’re heading in corrections.”

Avoiding the Trap of Over-Engineering

One of the most avoidable cost pitfalls in detention projects is paying for systems you don’t need and won’t use.

“We’ve seen counties pay over $1.5 million more for systems that look good on paper but offer no real operational benefit,” Rogers explained. “It’s often driven by IT or vendors who want the newest features, but those features rarely get used.”

Guerrero noted that architects face similar pressure: “There’s a lot of over-engineering happening—especially when product vendors lead the spec. When owners aren’t familiar with what they’re getting, they sometimes sign off on systems that are unnecessarily complex and expensive.”

Early engagement of contractors and integrators prevents this.

“When you collaborate with contractors and integrators up front, you design for real-world use—not for a marketing brochure,” Rogers said.

Tariffs Take a Backseat to Supplier Relationships

While tariffs remain a concern to many, experienced project leaders see domestic sourcing relationships as a more pressing advantage.

“We source from domestic mills,” said Bailey. “Even so, we deal with shutdowns and allocation. The key isn’t just where the material comes from—it’s how strong your partnerships are. If you’re not a top-tier customer, you’re going to the back of the line.”

The implication? Owners should favor vendors and contractors who’ve built long-term supplier equity—not those chasing the lowest bid with overseas sourcing.

Trust the Team— But Engage Early

Perhaps the most actionable advice shared by these experts is also the most underutilized: Engage professionals early and let them do their job.

“We see projects blow up when there are too many cooks in the kitchen,” said Bailey. “Some counties form large transition teams that overanalyze every detail. Others leave the sheriff out entirely. The best results come from engaged leadership [that trusts its experts].”

Guerrero emphasized the same point: “It’s important to get a program and a budget that actually match. Too often, the budget is created in a vacuum—and the program is built after. That disconnect can cost tens of millions to fix later.”

Build Smarter, Not Just Cheaper

Correctional construction is more complex and costly than ever—but leaders can maintain control by building smarter. That means assembling the right team early, practical design and leveraging innovations like prefabrication and integrated technology.

Much like building a successful detention project, building long-term financial strength also comes down to assembling the right team early. By assembling the right experts at the right time, you can coordinate efforts across specialties and make decisions that balance innovation, risk and long-term success.

Darrick Hutchens, CFP®, is a wealth manager and managing partner of Monon Wealth Management. He works with contractors, manufacturers and business owners in the detention construction industry, helping them grow, preserve and transition their wealth through all stages of their business lifecycle.