Insurer sues Greeley construction company for unpaid bonds in Centerra project

LOVELAND — Great American Insurance Co. (GAIC) is suing Greeley-based construction firm Energes Services LLC for allegedly failing to cover surety bonds on several projects in Northern Colorado.

According to the suit filed in the U.S. District Court of Colorado, GAIC issued six construction and payment performance bonds worth more than $6.9 million combined across the region. Contractors usually take out these bonds at the request of clients to make sure they fully pay for materials and labor when building a project.

Those bonds include $754,223 for landscape improvements in Centerra Metropolitan District #1, $134,168 for the second phase of the Loveland Sports Park, $848,896 for a bridge near Erie, $2.7 million for public improvements at Big Dry Creek in Westminster and two other projects in Adams County.

GAIC said it received more than $500,000 in claims from those projects, saying Energes failed to properly pay workers and for materials. Specifically, it said Energes was released from its Centerra contract, exposing the insurer to more liability.

Alan Pogue, general counsel for the Centerra district, confirmed to BizWest that the district sent Energes a notice of non-performance about two months ago because it hadn’t begun its landscaping construction. The company later cancelled the contract and agreed to pay the difference between its bid and the new contractor’s charges, but Pogue said Energes also breached that agreement.

The insurance company said it asked Energes to post $700,000 in collateral and to open its books for inspections as early as Sept. 10, but it hasn’t responded to either request. GAIC is asking the court to place a lien on Energes’ property if it doesn’t immediately post collateral.

Representatives for Energes did not respond to a request for comment Monday morning. The company has yet to list any attorneys for the case.

LOVELAND — Great American Insurance Co. (GAIC) is suing Greeley-based construction firm Energes Services LLC for allegedly failing to cover surety bonds on several projects in Northern Colorado.

According to the suit filed in the U.S. District Court of Colorado, GAIC issued six construction and payment performance bonds worth more than $6.9 million combined across the region. Contractors usually take out these bonds at the request of clients to make sure they fully pay for materials and labor when building a project.

Those bonds include $754,223 for landscape improvements in Centerra Metropolitan District #1, $134,168 for the second phase of the Loveland Sports Park, $848,896 for a bridge near Erie, $2.7 million for public improvements at Big Dry Creek in Westminster and two other projects in Adams County.

GAIC said it received more than $500,000 in claims from those projects, saying Energes failed to properly pay workers and for materials. Specifically, it said Energes was released from its Centerra contract, exposing the insurer to more liability.

Alan Pogue, general counsel for the Centerra district, confirmed to BizWest that the district sent Energes a notice of non-performance about two months ago because it hadn’t begun its landscaping construction. The company later cancelled the contract and agreed to pay the difference between its bid and the new contractor’s charges, but Pogue said Energes also breached that agreement.

The insurance company said it asked Energes to post $700,000 in collateral and to open its books for inspections as early as Sept. 10, but it hasn’t responded to either…