Cayemitte Capital Management Step-by-Step

How does Cayemitte Capital Management actually work?

CCM requires that an account be pre-funded to cover its expenses. The pre-funding can come from the Emerging Contractor, a Prime or Owner or a Lender. There are three key steps in this important process.

Step One – The Emerging Contractor is awarded a contract

• The Owner/Prime/Agency assigns all project payments to be managed via CCM.
• CCM sets up a managed account under the Emerging Contractor’s EIN number. (An EIN or Employer Identification Number is issued by the IRS, Internal Revenue Service.)
• The Emerging Contractor grants administrative rights to the managed account to The Cayemitte Group (TCG).
• The Project Owner/Agency/Prime/CM/Surety/Lender and the Emerging Contractor maintain account view rights.

Step Two – Set Up

• TCG works with the Emerging Contractor to develop the project’s schedule of values. The agreed upon amount is funded into the CCM Escrow account on a monthly basis.
• TCG works with Primes/CDFIs/lenders to obtain working capital.
(CDFIs are Community Development Financial Institutions, “a network of mission-driven institutions that serve and empower economically distressed communities.”)
• TCG works with Emerging Contractors to set up and contact all vendors to advise them that payments will be managed by TCG. We negotiate better terms based on assured payments.
• TCG works with the Emerging Contractor to set up payroll.
• For union Emerging Contractors, TCG helps to determine any union requirements for the project.
• For bonded projects, TCG coordinates with the surety to ascertain what is needed to qualify for bonding.
(The bond takes precedence over a loan or line of credit under the UCC or Uniform Commercial Code, a standardized set of business laws that regulate financial contracts.)

Step Three – Project Capital Management

• TCG assists the Emerging Contractor with invoices to the Project Owner/Prime to assure timely cash flow.
• If needed, TCG invoices the Emerging Contractor to draw additional funds into managed account to close any gap between the loan payment and project expenses.
• TCG pays all project vendors from the managed account and secures lien wavers for payments. It also makes any necessary union payments.
• TCG runs project payroll and submits prevailing wage certified payrolls.
• Upon payment from the Owner/Prime into the managed account, TCG pays the lender.
• Any remaining payment funds are released to the Emerging Contractor as profit.
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