Home        About       News       Library       Contact
Asset Insights

Capital Project
.

See also: Renewal Project.

project defined in a capital plan, which is specifically intended to acquire, replace or improve a capital asset

Acquisition of a capital asset refers to obtaining the use of that asset over the long term, irrespective of whether the method of acquisition is construction, purchase, lease/purchase or lease.  

A project to improve a capital asset is considered to be a capital project when the performance, value or capability of that asset is significantly increased or its useful or economic life is extended by more than one year. 


Attributes
Listed below are some of the key attributes of a capital project:

  • Typically require the services of a consultant.
  • Has a long lead time for procurement planning purposes.
  • Typically are subject to a competitive tender.
  • Involves significant logistics in the planning and organization of the project.
  • Typically funded from the reserve fund or by special assessment.


Examples:
Listed below are some examples of capital projects that do not include an incremental cost:

  • Roof replacement
  • Exterior fence repainting

Listed below are some examples of capital projects that include an incremental cost associated with some form of upgrade.

  • Boiler-and-Tank Retrofit
  • Copper-to-Pex Retrofit
  • T12-to-T8 Retrofit
  • CFL-to-LED Retrofit
  • Spring-to-Weight Retrofit
  • Conventional-to-Addressable Retrofit
  • VFD Retrofit

Capital Projects without Incremental Costs
1  Roof renewal project
Fig. Exterior painting project    Fig. Roof renewal project.


Lead time in months to a capital project.
Fig. Lead time in months to a capital project.



Reaching complex decisions can feel like a rollercoaster ride.
Fig. I. Care is nervous because he knows that there are surprises (in the form of a roller coaster ride) as the owners embark upon a large capital project.


1  1
Fig.  Repiping project.               Fig. Pool resurfacing project.


Multi-year strategic planning associated with a capital project.
Fig. Multi-year strategic planning and lead period to a capital project (shown in "yellow").


Capital Projects with Incremental Cost
1
Fig. Elevator relay controls replaced with elevator solid state controls.


VFD retrofit
Fig. Triplex booster pump package replaced with package that includes VFDs.

See also:

Replacing copper piping (the defender) with pex piping (the challenger)
Fig. Replacing copper piping (the "defender") with pex piping (the "challenger")

Retrofit of elevator hydraulic cylinder with PVC corrosion protection
Fig. Retrofit of elevator hydraulic cylinder with PVC corrosion protection.


Retrofit conversion of tank-type domestic water heating system to boiler-and-storage-tank configuration
Fig. Retrofit conversion of tank-type domestic water heating system to boiler-and-storage-tank configuration.


I Care is attemping to target some capital projects on his facility
Fig. I Care is attemping to target some capital projects on his facility.


(c) Copyright Asset Insights, 2000-2013, All Rights Reserved - "Insight, foresight and oversight of assets" Google