Minor capital expenditures are
those projects that are of a relatively small cost; however, they are defined as capital expenses (rather than operating expenses) because they occur on infrequent interval (say, every 5 years).|
Listed below are some of the key attributes of minor capital:
owners may define all items below a certain threshold as operating
expenses, regardless of how infrequently they occur. This is referred
to as a capital cost threshold.
owner groups, however, define capital costs by their frequency,
regardless of how small the cost may be. This is referred to as interval threshold.
Listed below are some examples of minor capital projects.
Minor capital is sometimes used also to refer to those
projects that involve changes in, adaptations to, or upgrades of
an existing asset, necessitated by a change in use or change in
- Replacement of the batteries on a fire alarm panel (every 4-5 years). Cost in the order of $500.
- Replacement of the weatherseals on exterior doors (every 8-15 years). Cost in the order of $100 per door.