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Capital expenditure (CapEx) – hardware and software - is the capital invested in constructing fixed assets such as concrete structures, pumps and pipes. Investments in fixed assets are occasional and ‘lumpy’ and include the costs of initial construction and system extension, enhancement and augmentation. CapEx software includes one-off work with stakeholders prior to construction or implementation, extension, enhancement and augmentation, (such as costs of one-off capacity building). [Source: Fonseca, C. et al., 2010. Life-cycle costs approach : glossary and cost components. (WASHCost briefing note ; no. 1) The Hague, the Netherlands: IRC. P. 4]

 

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