Several Calgarians are speaking out, alleging an asphalt construction company performed shoddy work, demanded upfront payment and charged exorbitant amounts of money beyond the scope of agreed contracts.
On Thursday Mar. 20, staff at the North Star Ford dealership located at 9 Crowfoot Cir. N.W., say they were approached by a man named “Thomas” and his construction crew claiming to be from a company called Eco Asphalt Ltd.
Marty Giles, owner of North Star Automotive Group, told CTV News that his staff was told Eco Asphalt had leftover paving supplies and were offering a good deal to fix up two sections of their parking lot.
“They had already scoped us out so to speak, saying we had some cracks, so my property manager asked them for an estimate. They figured it would be about $10,000 to $15,000, so I said, ‘yeah go ahead that sounds fair,‘” said Giles.
The agreed upon paving was completed, but it’s not smooth and is already starting to buckle in places. The contractor also paved more than North Star agreed to.
“On Friday afternoon, I got a call from my controller in a panic, and she said, ‘these guys are here, they want $129,000,‘” Giles said.
CTV News spoke with three customers who all said they were overcharged for asphalt paving. All three have gone to police. No charges have been laid, but investigations are underway.
The Better Business Bureau warns consumers to be cautious of unsolicited deals from contractors.
At North Star, Giles and his team were handed an invoice for $136,029.60, including GST, from Eco Asphalt Ltd. for work that took approximately eight hours to complete over the course of a day and a half.
Several North Star Ford employees told CTV News staff from Eco Asphalt wouldn’t leave their lobby until the dealership cut a cheque for the full amount.
The cheque was handed over, but the dealership was then called by a local Money Mart location asking if the funds they sent in their original cheque were OK to be transferred.
Giles found that request strange and filed a report with the Calgary Police Service. His dealership proceeded to cancel the cheque.
“These guys wouldn’t get off our lot until they were paid though so I said we would pay them on Monday, but the pressure was on, they wouldn’t get off the phone, saying things like ‘you’re going to put me out of business and threatening me.‘”
Giles told CTV News he was then texted 15 different times on Friday evening from an Eco Asphalt employee.
“He was sending me links from the Builders Lien Act and that if we don’t pay, they’re going to lien our property, rip our asphalt and if there’s any damage to city services, we’re on the hook for it.”
“On Saturday morning, it started again. He said ‘I’ll take 90 grand.’ Then he lowered it to 70 grand. I said, ‘No,’ and got my lawyer involved.”
Giles said he is willing to pay $15,000 for the service, but asked Eco Asphalt for WCB clearance, a real GST number and articles of incorporation to ensure they were legitimate.
“Long story short, we sent that request out to him and I haven’t heard from him since. Like he just left as soon as we wanted him to prove it – that was it.”
‘Super high pressure interaction’: Springbank condo board president
CTV News also spoke with a Springbank condo board president who is now complaining of “shoddy” work and overcharging after being approached by another asphalt paving company called Phoenix Asphalt Ltd.
“A guy showed up offering paving services, he suggested he was working for the county down the road and had a couple extra trucks of asphalt,” said Cody Wilson.
“He noticed there was a sag in our paving and offered to do a quick job. We were interested and they did the work, but it ended up being just gravel with a little bit of oil sprayed on top – a pretty shoddy job.”
Wilson said Phoenix showed up unsolicited and that it was a “super high pressure” interaction.
He tells CTV News that the construction crew was granting him a “limited time offer” and “doing them a favour” by letting them use their leftover asphalt.
“It looked legit with machines and everything,” Wilson said.
“The original price, we had discussed, that we could afford was somewhere around $7,000 to have the work done, but then when he was done it went from seven grand to $25,000, which is pretty high considering the quality of work.
“They shoved this contract in our face, and they we’re like, ‘you signed here, you have to pay us’, and you know, it was ‘you agreed to this much square footage, and we’re going to put a lien on the building if you don’t pay.‘”
Wilson said Phoenix ended up negotiating with him and a much smaller amount of money was agreed upon so the crew would leave his property.
He filed a police report.
High cost and quality concerns
A similar interaction also occurred for Richard deHaas, the president and owner of M.A. Steel Foundry Ltd., located at 4820-78 Ave. S.E.
Two weeks ago, a salesperson – also named “Thomas” from Eco Asphalt Ltd. – showed up at his office, offering a “really good deal” to pave his parking lot.
“I thought I got a good deal at six dollars per square foot on asphalt they said they had left over from another job,” deHaas said.
So deHaas agreed to pay six dollars per square foot for around $3,500. But more work than that was done.
“We talked about 600 square feet to redo the lot and after I looked at it, all of a sudden it was up to about 3,000 square feet.
“There was no authority, no nothing. Altogether the bill was $24,000.”
The exorbitant cost was shocking for deHaas, who says his team thought the Eco Asphalt website was legitimate, but once he saw the quality of the work, he reached out to police.
“They just basically put bare rock down, and then they spray it nicely with black asphalt, black tar, and so it looks really good at first, but once they’re done, as soon as you drive on them, then it’s just destroyed. So, there’s zero strength.”
M.A. Steel went to the Calgary Police Service (CPS), but deHaas was told there was nothing they could do as it was a civil matter.
No report was filed, but deHaas is now out $24,000.
An email was sent to M.A. Steel stating that Eco Asphalt would come back to fix work that was done incorrectly, but deHaas said he hasn’t heard back since.
The companies respond
Eco Asphalt Ltd. and Phoenix Asphalt Ltd. both have different websites with the same phone number and address.
That address, 9543 Shepard Road S.E., is BURNCO Rock Products location.
CTV News confirmed BURNCO is not affiliated with either Phoenix Asphalt or Eco Asphalt Ltd.
When CTV News called the number listed on both company websites, a man named Nigel answered the phone.
He said Eco Asphalt was impersonating his own asphalt company, which goes by the same name in Edmonton.
Nigel was asked numerous times to provide proof that Eco Asphalt Ltd. in Edmonton exists and did not provide any further information.
A corporate business registry search confirmed that no such company under the name Eco Asphalt Ltd. exists in Alberta.
CTV News confirmed another company in Edmonton by the name of MD Eco Asphalt & Paving Ltd. is also not affiliated with Eco Asphalt.
But the owner of that company said he has struggled with impersonators before.
An additional business registry search did confirm the registration of a company called Phoenix Asphalt Ltd. That company was officially registered on Sept. 6, 2024, in Edmonton.
CTV News did speak with Phoenix’s Calgary-area general manager, John Charles Sowerby, over the phone about all three complaints.
“I go through this all the time, people don’t want to pay for work, people try to f*** me out of money. Try to understand my side.”
Sowerby went on to say that contracts signed by North Star Ford show the dealership agreed to pay $136,000 before his team started work on the project and an invoice was signed and dated by both parties.
CTV News requested a copy of that signed contract but has not yet heard back.
North Star provided an invoice estimate in that amount, but says it was not given a copy of a signed contract from Eco Asphalt, but says an employee felt pressure to sign a deal for $12 per square foot.
“I’m a private company and this is a civil matter. What has happened here? I haven’t tied these people up and demanded money,” Sowerby said.
Sowerby also said his crews would return to M.A. Steel to fix any deficiencies, but deHaas said he hasn’t heard anything.
As for the Springbank condo, Sowerby says he’s owed more for work completed.
Both Phoenix Asphalt Ltd. and Eco Asphalt Ltd. websites were taken down for maintenance a short time after the phone call with Sowerby.
Police investigating incidents of alleged paving fraud
Police complaints have been filed about Phoenix Paving Ltd. and Eco Asphalt Ltd.
CPS says it has four fraud-related reports involving paving companies. Investigations are now underway.
Three complaints have come in since CTV aired its story about asphalt company contract yesterday.
The first one CPS was notified about was Wilson’s complaint regarding the condo building he presides over.
“We can confirm we have received a fraud-related report, where construction work was performed extended beyond the scope of the agreed contract and the client was charged an amount exceeding the agreed price in the contract,” read a statement to CTV News.
Mary O’Sullivan-Anderson, president and CEO of Calgary’s Better Business Bureau, notes that consumers should watch out for contractors who tell consumers they have extra materials or that they’ll be offered an ‘exclusive preferred price’ for work.
“If somebody comes to your home or your business and is soliciting services that you haven’t gone out and looked for yourself, specifically, expensive services that they’re coming into your businesses to perform, make sure that you’re clear on the work that’s being done,” she said.
“Ensure you have a written estimate, that you take time to research who you’re hiring and understand payment terms, warranties, what the work is and whether they actually have the services and ability to be able to perform that work to the standards that you need done.”
CPS additionally provided the following tips for Calgarians to protect themselves when hiring a contractor for work on their business or home property:
Verify credentials
- Always ensure the contractor is properly licensed and insured;
- Check with the City of Calgary’s online business license database; and
- Consider checking with the Better Business Bureau.
Get it in writing
- Have a detailed written contract that includes:
- Start and completion dates;
- A full description of the work and materials; and
- The total cost.
Be cautious with payments
- Avoid paying large sums of money upfront;
- Be wary of contractors who demand cash payments;
- Only contractors with a pre-paid contractor’s licence from Service Alberta can ask for a deposit; and
- Do not do e-transfers.
Check references
- Ask for and contact references from previous clients.
Liability insurance
- Ask if the contractor carries liability insurance. Doing so can protect you if any damage occurs during the project.
Be aware of red flags
- Be suspicious of contractors who:
- Offer unusually low prices;
- Pressure you to make immediate decisions;
- Only provide a cell phone number; and
- Show up at your door, offering unsolicited services.
Report suspicious activity
- If you suspect fraud, report it to police.
- Contact the non-emergency line at 403-266-1234.
- You can also make anonymous reports through Crime Stoppers.
