Reservations of one block each were made for a courthouse for Lancaster county, for a city hall and market space, for a state historical and library association, and seven other squares in proper locations for public schools. Reservations were also made of three lots each in desirable locations for ten religious denominations, upon an understanding with the parties making the selections on behalf of the several denominations, that the legislature would require of them a condition that the property should only be used for religious purposes, and that some time would be fixed within which suitable houses of worship, costing not less than some reasonable minimum amount, should be erected. One lot each was also reserved for the use of the Independent Order of Good Templars, and Odd Fellows, and the order of Ancient Free and Accepted Masons. These reservations were afterwards confirmed by the legislature, with conditions recommended by the commissioners, and religious denominations were required to build on their reserved lots previous to or during the summer of 1870.

In anticipation of the completion of the survey, due advertisement thereof was made as provided by law, and a sale of lots opened at Lincoln on the 17th day of September, for the purpose of raising the necessary funds for commencing the construction of the state house.

Owing to the unpropitious state of the weather but few bidders were present, and the results of the first day's sales were light and disheartening; during their continuation, however, circumstances were changed for the better, and at the end of five days $34,000 had been realized. Subsequent sales were held at Nebraska City and Omaha, which by the fourth day of October had increased that amount to the sum of $53,000. Sales were subsequently held at Lincoln on the seventeenth of June and September, 1868, from which were realized the sum of $22,580.

On the tenth of September, 1867, the commissioners issued their notice to architects, inviting, for a period of thirty days, plans and specifications for a state house; and upon the tenth of October, after having considered the merits of the several plans presented, they concluded to accept that of Prof. John Morris, of Chicago, whom they thereupon appointed superintendent of construction, and issued notice to builders, inviting proposals for a term of three months, for the erection of the work; Prof. Morris in the meantime commencing such preliminary work as excavations for foundations, delivery of material for foundation, and other arrangements as should tend to facilitate the progress of the work after the contract was let.

On the tenth of November the superintendent caused the ground to be broken in the presence of a number of the citizens of Lancaster, the removal of the first earth being awarded to Master Frele Morton Donavan, the first child born in, and the youngest child of the oldest settler of Lancaster county.

On the eleventh of January, 1868, the bid of Mr. Joseph Ward, proposing to furnish the material and labor, and erect the building contemplated in the contract for the sum of $49,000, was accepted, and from that time forward the work steadily progressed, with the exception of a few unavoidable delays, until its completion.

On account, however, of the increasing wants of the state, the difficulties attending, the changes of material and increased amount of work and additional accommodation found necessary and advisable, the commissioners deemed it expedient to exceed the amount of expenditure contemplated in the statute; the additional expense being defrayed from the proceeds of the sales of lots and lands appropriated for that purpose.

It was originally intended that the walls of the building should be built of red sandstone, and faced with blue limestone, but upon proceeding with the work the architect and builder found that the difficulties attending the procuration of the last named material would, unless the object was abandoned, result in an impossibility of the completion of the work at contract prices; and in so far retarding its progress as to prevent its erection in time for the use of the next session of the legislature. Its use, therefore, was accordingly abandoned, and it was decided to substitute in lieu thereof the magnesian limestone of Beatrice, which the experience of the architect had proved to be of far better character for building purposes than the blue limestone, it being less liable to wear or damage from frost or fire or any other action of the elements.

This change having been made, the work was pushed vigorously forward, and on the third day of December, 1868, was so far completed as to be ready for the occupancy of the state officers, and the governor, therefore, on that day issued his proclamation announcing the removal of the seat of government from Omaha to Lincoln and ordering the transportation of the archives of the state to the new capitol.