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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).


Attributes:
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.

Examples:
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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