An excavation job gone wrong has tipped a local subcontractor into bankruptcy.
Castle Rock-based Xtreme Xcavating filed Chapter 11 on Aug. 28 with $1 million in assets and $520,000 in liabilities, according to a balance sheet included in court documents. Among its assets, the company valued its tractors at $115,000 and additional automobiles and trucks at $230,000.
Reached by phone, co-owner Sean Fabela said the company was financially sound until it worked on two CVS Pharmacy sites in Denver and Littleton.
“We found ground water, we found asbestos, we found all sorts of crazy stuff – all sorts of different changes that weren’t listed when we signed up for the contract,” Fabela said.
Adding to the excavator’s woes, Fabela claims general contractor Alvarado Construction still owes $300,000 for the work – about a quarter of his company’s annual revenue.
“I’ve been doing this 20 years, and I’ve never been fired off the job, not once, and I’ve never not been paid for the job,” he said. “This is the first time a general contractor has put us in this position.”
Alvarado Construction is one of the Denver-based builders behind local landmarks like Invesco Field and the Denver Convention Center. It is headed by Linda Alvarado, a co-owner of the Rockies.
Alvarado Construction’s lawyer, Christian Hendrickson with Sherman & Howard, denied Fabela’s allegations. He said the Arvada subcontractor did poor work on the site, which ultimately cost Alvarado Construction time and money to redo.
“Alvarado wholly disagrees (with Xtreme Xcavating’s claims) and thinks it is entitled to substantial money from Xtreme Xcavating,” Hendrickson said when reached by phone.
He said Xtreme Xcavating, which has since been taken off both CVS sites, also failed to pay its own subcontractors.
Xtreme Xcavating filed under the name Colorado Property Repair. It is represented in bankruptcy court in Denver by Lee M. Kutner with KutnerBrinen.