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See also: Renewal Project.
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.
Listed below are some examples of capital projects that include an incremental cost associated with some form of upgrade.
Capital Projects without Incremental Costs
Fig. Exterior painting project Fig. Roof renewal project.
Fig. Lead time in months to a capital project.
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.
Fig. Repiping project. Fig. Pool resurfacing project.
Fig. Multi-year strategic planning and lead period to a capital project (shown in "yellow").
Capital Projects with Incremental Cost
Fig. Elevator relay controls replaced with elevator solid state controls.
Fig. Triplex booster pump package replaced with package that includes VFDs.
Fig. Replacing copper piping (the "defender") with pex piping (the "challenger")
Fig. Retrofit of elevator hydraulic cylinder with PVC corrosion protection.
Fig. Retrofit conversion of tank-type domestic water heating system to boiler-and-storage-tank configuration.
Fig. I Care is attemping to target some capital projects on his facility.
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