Island Pavement Company Boosts Bid Accuracy and Profitability with Estimating Link

Island Pavement Cutting Co., Inc., originally founded as Island Pigment Cutting Company in 1968, has grown into a multi-generational family business specializing in heavy highway construction, saw cutting, core drilling, wire sawing, and road waterproofing. The company has a legacy of innovation, with each generation adapting to industry demands. John Tyson, an executive supervisor responsible for estimating, purchasing, and managing heavy highway projects, led the transition to Estimating Link to improve cost visibility and streamline bidding accuracy.

  The Challenge

As Island Pavement expanded, John struggled with hidden costs and limited visibility in manual estimates, which impacted profitability and project selection.

“Missing hidden costs is the biggest thing,”

John explained.

“Estimating Link helped me see additional costs I hadn’t accounted for in my estimates.”

Adding to these challenges were lingering supply chain issues since COVID-19, which affected equipment acquisition timelines and operational planning.
Key challenges included:

• Hidden costs in project estimates, leading to decreased profit margins.
• Manual processes for cost tracking, creating inefficiencies.
• Rapid cost fluctuations for fuel and material, difficult to reflect in bids with traditional methods.

  The Solution

To gain better control over estimating processes, Island Pavement implemented Estimating Link. Initially, the onboarding process involved two months of data entry to set up the system, a significant task given the company’s multi-state operations and diverse labor rates. However, John noted,

“Now that everything is in Estimating Link,  I know I’ve done it right.”

Implementation Process

From data input to wage differentials and vendor libraries, setting up Estimating Link was rewarding. John’s colleague, Jen, played a crucial role in handling data entry and system integration, enabling John to quickly pull real-time costs and make adjustments in his estimates.

   The Results

Since adopting Estimating Link, Island Pavement has seen marked improvements in cost accuracy, profit margins, and project selection.

1. Improved Bid Accuracy and Profit Margins:
   With Estimating Link, John could accurately calculate costs down to details like equipment usage and fuel. 
   
   “In the old days, we added $400 for fuel without a precise breakdown. Now, I know exactly what each piece of equipment costs per day,” 
   
   he noted. This new transparency allowed Island Pavement to avoid taking on projects with insufficient profit margins. For example, a potential bridge project offered only 7% profit, which, when estimated through Estimating Link, showed it would cost them $14,000 per day—a cost John used to decline the job, saying, 
   
   “I invited them to my office, showed them the numbers in black and white, and said, ‘Show me how I can make money on this, and I’ll work for you.’”
   
   
   
2. Cost Control and Efficiency Gains:
   John praised the software’s ability to identify hidden costs that were previously overlooked, saying, 
   
   “The hidden costs we weren’t carrying forward were astronomical.” 
   
   This accuracy helps Island Pavement confidently include every expense, from labor rates to equipment depreciation. 
   
   “Now, we know this dump truck costs us $464 a day,” 
   
   he added. Estimating Link's precise calculations and item library ensure bids reflect real-time numbers, improving both accuracy and confidence in bid proposals.
   
   
   
3. Streamlined Project Documentation and Communication:
   Estimating Link’s cloud-based functionality allows Island Pavement to centralize project data, making collaboration easier and reducing reliance on manual processes. 
   
   “When you’re doing everything with pen and paper, it takes longer. Now, I’ve cut that process out with cloud link,” 
   
   John shared. With automated project tracking and report generation, the team saves time and maintains consistency across all projects.
   
   
   
4. Strategic Project Selection:
   Enhanced cost visibility has shifted Island Pavement from a “take all” approach to more selective project bids. John remarked, 
   
   “We realize that gobbling up everything is not a business strategy that keeps you alive.” 
   
   With Estimating Link, the company prioritizes high-value, profitable projects, maintaining focus on sustainable growth.

Notable Feature: The Item Library

John highlighted the item library as a standout feature for storing current rates on labor, equipment, and materials.

“When I get new quotes, I update the library, so everything’s up-to-date,”

he said. This centralized resource ensures that Island Pavement’s bids start with accurate baseline data, which can be adjusted based on current market fluctuations.

Final Thoughts

Estimating Link has transformed Island Pavement's estimating and bidding practices, providing a reliable, data-driven approach that aligns with the complexities of modern highway construction. John’s advice for other contractors considering a switch?

“Use Estimating Link in your bidding process. Real numbers are invaluable.”

Conclusion

Island Pavement’s implementation of Estimating Link has not only improved bid accuracy and project profitability but has also enhanced the company’s strategic approach to project selection. In John’s words,

“Estimating Link lets us make informed, profitable decisions in a way that pen-and-paper methods simply couldn’t.”

This case study demonstrates how a family-owned business transformed decades-old processes to stay competitive and thrive in a challenging market.

Ready to Streamline Your Estimating Process?

See how Estimating Link can transform your business, just like it did for Island Pavement Cutting Co., Inc. Schedule a personalized demo today to explore how our user-friendly software can help your team save time, improve accuracy, and drive growth.