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Minor Capital
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:
  • Some 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.
  • Other 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.
  • 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.
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 need. 

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