Contractors’ Insurance Woes Postpone Construction at Winona State U.

In recent months the recession has created plenty of complications for campus administrators — some institutions have found themselves scrambling to make new financial arrangements when complicated borrowing packages fell apart, and some states have frozen capital spending, forcing projects to an awkward halt. But now there’s a new worry. Contractors hired to build a new residence hall at Winona State University, in Minnesota, couldn’t get insurance for the project, according to the Winona Daily News.

Contractors informed the university that they were unable to comply with the state-university system’s insurance requirements for construction, said Kurt Lohide, the university’s vice president for finance and administrative services, adding that the insurers probably aren’t confident about the contractors’ futures. “I think there’s just general nervousness in the economy about businesses surviving,” he said.

Mr. Lohide said other universities in the state system had encountered the same problem, and that the system had been forced to ease some of its requirements. New bids will be accepted on the residence-hall project under the relaxed rules, he said.