Changes

Capital Maintenance Expenditure (CapManEx)

3 bytes removed, 03:06, 12 January 2013

no edit summary

'''====Difference between operational expenditure and capital maintenance''' <br>====

When an existing system undergoes minor maintenance, for example regular greasing of bearing points or tightening of pump bolts, the related cost is part of [[Operational and Minor Maintenance Expenditure (OpEx)|operational and minor maintenance expenditure (OpEx)]]. The point where minor maintenance becomes capital maintenance is a matter of frequency; ''does the cost occur more than once a year?'' and of amount; ''Is the cost significant compared to the on-going operational expenditure?''. For example, although the cost of emptying a twin pit or shallow pit-latrine may be significant compared to the initial investment needed for construction, it occurs frequently, at least compared to the life cycle of the latrine itself, and does not constitute a physical renewal. Thus, it is considered as [[Operational and Minor Maintenance Expenditure (OpEx)|operational and minor maintenance expenditure (OpEx)]]. However, the cost of emptying a single deep pit might only be needed once every five to ten years and might usefully be considered as capital maintenance expenditure. The replacement of a small valve on a piped system, or repairing a leaking pipe is [[Operational and Minor Maintenance Expenditure (OpEx)|operational and minor maintenance expenditure (OpEx)]], although its failure can significantly affect the serviceability of the system, because this is a small cost which occurs frequently compared to the life of the system. Replacing a length of pipe because there have been a number of leaks, or replacing a major valve after several years of use would be classified as capital maintenance expenditure.

• ← Older edit
• Newer edit →

Winona

Akvopedia-spade, akvouser, bureaucrat, emailconfirmed, staff, susana-working-group-1, susana-working-group-10, susana-working-group-11, susana-working-group-12, susana-working-group-2, susana-working-group-3, susana-working-group-4, susana-working-group-5, susana-working-group-6, susana-working-group-7, susana-working-group-8, susana-working-group-9, susana-working-group-susana-member, administrator, widget editor

30,949

edits