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Major Repair

The term has two meanings that vary in their scope:

1.   A repair or alteration to an asset that is large in scope and significant cost implications which could result in dramatic changes in performance of the asset.

Depending on local codes and standards, Major Alterations will likely require Professional Engineering review and stamp. Some examples that fall under this definition:

2.  A major repair may be less than a complete renewal of an asset and usually entails replacement of one or more components rather than an entire assembly. Some examples that fall under this category:


Attributes
Listed below are some of the key attributes of a major repair:
  • While a significant portion of the asset may be replaced, the project is still not classed as a renewal. The work is still localized in its scope.
  • The major repair is intended to be permanent in nature.
  • It is generally a major cost that is classed as a capital expense (capex) rather than an operating expense (opex).
Painting of exterior walls and privacy fences to protect the wood substrate
Fig. Localized replacement of exterior boards can be considered an example of a major repair project.

See also:
Compare with:


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