CAPEXPLAN

How to Include a Performance Contract in Your Capital Expenditure

Published on Tuesday, 15 October 2013 06:04:39    Written by Marc
How to Include a Performance Contract in Your Capital Expenditure Capital expenditure can be about many things, ranging from building to production equipment and many things in between actually. Regardless what the capital expenditure is about, it normally has its own specs. For example, if we seek a capital expenditure for the construction of a building expansion, the things we will look at will be different from a capex for production equipment. While is obvious, what is less is what we need to look for in order to insure that the result mirrors what we really wanted in the first place.

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Raise the red flag fast when a capital expense project starts to go in the wrong direction

Published on Tuesday, 24 September 2013 10:05:32    Written by Marc
Raise the red flag fast when a capital expense project starts to go in the wrong direction In my neck of the woods, if you want to become an engineer, you must first graduate from university and then work under the supervision of a senior engineer for 2 years. This is commonly called god-fathering but a better word might be mentoring. Anyhow, I always get a kick out of god-fathering a junior fresh out of school. I like this because it enables me to exchange with young eager minds and see the world though their eyes. I love learning and I am naturally curious, so I find it amusing to hear about their vision of the future and how they feel they can contribute at improving the working environment of companies in general.

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Open Ended Question on Return on Investment

Published on Tuesday, 3 September 2013 17:27:32    Written by Marc
Open Ended Question on Return on Investment Do you evaluate how much the capital expenditure (capex) spent has actually brought back in return over time?

About 10 years ago, the CEO of the company I was working for actually made a similar comment. I had been with the company only one year and this was my first budget review alongside a bunch of VP’s, senior VP’s, president of sectors, the CEO, as well as some head office executives.

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Planning Capital Expenditure over the Life of the Purchased Item – Better Perspective!

Published on Friday, 30 August 2013 12:20:18    Written by Marc
Planning Capital Expenditure over the Life of the Purchased Item – Better Perspective! Large and well-established companies such as pension funds at times plan their [tag]capital expenditures[/tag] according to the lifespan of the items they purchase whereas smaller companies plan for much shorter designated periods. In a previous work environment, one of my responsibilities was to plan purchases based on the expected lifespan established by the manufacturer, which could range from 10 to 25 years. Read More

Plan Your Capital Expense Like a Squirrel

Published on Tuesday, 27 August 2013 13:49:08    Written by Marc
Plan Your Capital Expense Like a Squirrel Did you ever notice how squirrels seem to get active in the fall? Of course, you rarely see a squirrel sitting around doing nothing as they constantly move around getting things done. But in the fall season you can clearly see that they ramp up activity. My apple tree on the side of the house starts to loose apples around the end of august. That’s when the squirrels seem to start to prepare their winter reserves. You can see them with apples as large as an adult’s fist in their mouth climbing the side of the house stopping on the roof for a snack and then off to the small strip of forest in the back of the house to bury the bulk of the produce. So they eat a little and they keep the rest for a rainy or should I say a snowy day. Read More