1.81 Capital Expenditure is the expenditure incurred by Procuring Authorities in acquiring an asset so that, at the outset, it is fit for its intended purpose. It does not cover expenditure required in later years to maintain the asset. This is included in the Spreadsheet as Lifecycle Costs.
1.82 Typically, Capital Expenditure will include, inter alia, preliminary costs, basic materials and labour costs, professional fees, a reasonable contingency and VAT. The Input Value of Capital Expenditure will vary from project to project. It will, therefore, need to be determined by the Procuring Authority in the light of appropriate professional advice.