Announcing The CARV System» From. Cashin Spinelli & Ferretti, LLC is pleased to introduce The CARV...

Announcing The CARV System»

From

Cashin Spinelli & Ferretti, LLC is Cashin Spinelli & Ferretti, LLC is pleased to introducepleased to introduce

The CARV System»

a significant improvement in a significant improvement in financial reporting for sureties financial reporting for sureties managing completion work or managing completion work or providing financing to a providing financing to a Principal.Principal.

The The CARVCARV System» System»


CARVCARV is a is a managerial and managerial and technological leap technological leap in in financial reportingfinancial reportingfor completing for completing and financing and financing Sureties.Sureties.

Cost

And

Reserve

Variance

What is CARV

What is CARVCARV?CARVCARV analyzes complex multi-page analyzes complex multi-page construction cost reports and construction cost reports and provides Surety managers with easy provides Surety managers with easy to read reports on work progress, to read reports on work progress, cash flow and reserve adequacy.cash flow and reserve adequacy.


By making extensive use By making extensive use of technology and of technology and existing information existing information from joint escrow from joint escrow accounts, accounts, CARVCARV will will reduce expenses for reduce expenses for outside consultants and outside consultants and accountants.accountants.


What is CARVCARV?

Surety claims representatives all Surety claims representatives all have opinions about entering into a have opinions about entering into a completion agreement or providing completion agreement or providing financing to a distressed Principal.financing to a distressed Principal.


Why CARVCARV ?

Hard earned wisdom from working Hard earned wisdom from working through the many pitfalls of completing through the many pitfalls of completing and financing strategies usually leads and financing strategies usually leads to some universal advice…to some universal advice…


Why CARVCARV ?

Don’t do it!Don’t do it!

Common Common ExperiencesExperiences


Why CARVCARV ?

Problem 1:Problem 1:Have you ever issued a check to Have you ever issued a check to fund an escrow account and fund an escrow account and wondered whether the remaining wondered whether the remaining reserve is adequate to cover the reserve is adequate to cover the cost of the remaining work?cost of the remaining work?


Why CARVCARV ?

Problem 2:Problem 2:Have you ever incurred large bills with Have you ever incurred large bills with consultants and accountants trying to consultants and accountants trying to find out if your reserves are adequate find out if your reserves are adequate to cover those costs? to cover those costs?


What What Happened ???Happened ???

Why CARVCARV ?

Or to research that proverbial Or to research that proverbial question…question…

Problem 3:Problem 3:Have you ever been half-way Have you ever been half-way through a financing case and through a financing case and discovered that your loss discovered that your loss reserve will require a reserve will require a substantial increase to cover the substantial increase to cover the remaining completion costs . . . remaining completion costs . . .


. . . and had NO. . . and had NO WARNING it was WARNING it was coming???coming???

Why CARVCARV ?

Why does this happen ?Why does this happen ?



The Answer:The Answer:Why CARVCARV ?

» We all know that a Surety sometimes has no viable » We all know that a Surety sometimes has no viable option to providing financing to its Principal or option to providing financing to its Principal or completing the work itself.completing the work itself.» Having been forced into this otherwise rational » Having been forced into this otherwise rational decision, Sureties are frequently forced to rely on the decision, Sureties are frequently forced to rely on the Principal’s accounting system to obtain the Principal’s accounting system to obtain the information they need to manage both the project information they need to manage both the project and the loss reserve.and the loss reserve.

Contractor systems cannot:Contractor systems cannot:

» Analyze the reserve impact of surprise corrective » Analyze the reserve impact of surprise corrective

workwork

» Track trends in project expenses» Track trends in project expenses


Contractor accounting systems were designed for Contractor accounting systems were designed for contractorscontractors..

Why CARVCARV ?

The Answer:The Answer:

» Inform you whether reserve disbursements Inform you whether reserve disbursements have resulted in equal reductions in workhave resulted in equal reductions in work

Alert you that a reserve Alert you that a reserve adjustment will be required … adjustment will be required …

Most important, Most important, contractor accounting contractor accounting systems cannot:systems cannot:

The The CARVCARV System» System»Why CARVCARV ?

oror tell you tell you what what happenedhappened..

After 100 years of history with After 100 years of history with financially distressed principals, there financially distressed principals, there is no accounting system designed is no accounting system designed specifically for a completing or specifically for a completing or financing Surety.financing Surety.


The Answer:The Answer:

Why CARVCARV ?


CARVCARV provides graphical provides graphical trend and financial reports trend and financial reports for the unique needs of the for the unique needs of the Surety Manager overseeing Surety Manager overseeing completion work and completion work and Principal financing.Principal financing.

Why CARVCARV ?

We’ve developed We’ve developed The The CARV CARV SystemSystem to fill to fill this gap.this gap.

What Does CARVCARV Do?


CARV CARV answers two answers two questions:questions:

» What does all the project cost What does all the project cost

data mean?data mean?

» Is the loss reserve adequate?Is the loss reserve adequate?

Reserve Variance Report

Contingency vs Completion Graphics

Burn Rate

COST TO COMPLETE

WORKSHEETS

QUICK BOOKS

Financial ControlsDeposits and

Payments

REVENUE SUMMARY(snapshot)

Progress PaymentsReserve Distributions

PAYOUT SUMMARY(snapshot)

Payment ClaimsCosts to Complete

OverheadLAE

Contingency

PRINCIPAL'S FINANCIAL AND

PROJECT RECORDS

course of action

Finance Principal

Tender Check or Contractor

Complete as Surety - Takeover

Investigation

SUCCESSFUL CLAIM

RESOLUTION

PAYMENT BOND CLAIMS

Is Reserve Impacted ?

COST TO COMPLETE DETAIL(day to day)

Subcontractor costsAdjustments

Payment ClaimsContractor Overhead

ContingencyLAE

CONTRACT BALANCE DETAIL(day to day)

Contract BalanceAdjustments - Co's, LD's

Amount Paid to DateMonthly Requisitions

EXPEDITIONRaw Field Data

Contracts and Construction

RESERVE DETAIL

Pending Co's

CARVCARV transforms surety financial reporting from this:


Current Cost to Complete SummaryTrend Graphic Reports

Revenue Report

Contract Balance andOutstanding Reserve

Summary

Completion Cost SummaryContingency Summary

Significant Adjustment Report

Contract BalanceCollections

AndSurety Reserve

Payments

Completion Cost DetailContingency DetailAdjustment Detail

Payment ClaimReport


To this:

How Does CARVCARV Work


» The heart of The heart of CARVCARV is its use of existing is its use of existing financial information from Payment financial information from Payment Requisitions and Joint Control Escrow Requisitions and Joint Control Escrow Accounts.Accounts.» Our technology transfers this Our technology transfers this information into information into TheThe CARVCARV System System..

» After transferring, After transferring, CARVCARV keys on two keys on two items:items:1. The original Completion Cost 1. The original Completion Cost

Estimates Estimates (Surplus/Deficit Report)

2. Contingencies built into the loss 2. Contingencies built into the loss reserves.reserves.

CARVCARV then produces three main reports:then produces three main reports:


How Does CARVCARV Work

»TheThe CARVCARV Current Cost to Complete Current Cost to Complete SummarySummary»TheThe CARVCARV TrendTrend Graphics ReportGraphics Report»The The CARVCARV Revenue Revenue ReportReport


»TheThe CARV CARV Current Cost to Complete Current Cost to Complete SummarySummarycompares monthly activity compares monthly activity against original estimates.against original estimates.

How it Works

» TheThe CARVCARV Trend Graphics Reports Trend Graphics Reports provide a visual analysis of key provide a visual analysis of key cost and completion trends.cost and completion trends.


How it Works

The The CARVCARV Revenue Report Revenue Report provides a summary of contract provides a summary of contract balance collections and predicts balance collections and predicts cash flow needs for the coming cash flow needs for the coming month.month.


How it Works


»The The CARVCARV Adjustment Report Adjustment Report tracks the cost impacts of changes tracks the cost impacts of changes

in the project.in the project.»The Adjustment Report provides The Adjustment Report provides the answer to - the answer to - What HappenedWhat Happened??????

How it Works

CARVCARV provides the tool that provides the tool that enables a Surety to make the enables a Surety to make the leap and use its own language leap and use its own language to simultaneously manage both to simultaneously manage both construction activity and surety construction activity and surety reserves.reserves.


How it Works

CARVCARV produces:produces:» Better management of the Better management of the

projectproject

» Better management of the Better management of the reservereserve

» Lower costs for consultants and Lower costs for consultants and accountantsaccountants


How it Works

To arrange an in depth presentation onTo arrange an in depth presentation on The The CARVCARV System»System» contact: contact:

Jim Rudnik, Esq.Jim Rudnik, [email protected]. 610-270-0333ph. 610-270-0333

Lou BaldassarreLou [email protected]. 610-270-0333ph. 610-270-0333

OROR


Bohemia (Long Island), NY (Home Office)(631) 737-9170

Plantsville (Hartford), CT (860) 628-5557

Buffalo Grove (Chicago), IL(847) 415-9003

Blue Bell (Philadelphia), PA(610) 270-0333www.csfllc.com

mailto:[email protected]?subject=CARV

mailto:[email protected]?subject=CARV

http://www.csfllc.com/

Announcing The CARV System» From. Cashin Spinelli & Ferretti, LLC is pleased to introduce The CARV...

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