Brisull Industries

CAPEX Consulting

Your CAPEX planning is essential to the viability of your long-term budget. Any recurring capital expenditure that you plan to keep on the books should be analysed and optimised to provide its full potential value to your company.

Let's take a look at exactly what CAPEX can do for you.

CAPEX Consulting

What is CAPEX?

A CAPEX calculation is a capital expenditure amount for the resources that companies use for more than one year. These kinds of goods and services have additional key performance metrics that companies should identify and assess otherwise, that company may be missing out on the real value of that asset.

In most cases, a company and its consulting partner should implement a CAPEX project in order to identify resources of this type. If a company has not become used to creating budgets around its recurring assets or optimising those assets based in terms of changing market parameters, it may not be able to incorporate CAPEX on its own.

What Does a CAPEX Project Do?

A CAPEX project helps a company to identify all operating assets, safety and façade requirements of the building and put the following criteria to each:

  • Replacement value
  • Useful life
  • Condition
  • Remaining useful life
  • Fair value

Knowing these metrics helps asset owners to estimate the annual capital expenditure required moving forward in the long term for these kinds of assets.

A properly managed CAPEX project can also work wonders for a company's budgets moving forward. Decision-makers will have highly defensible valuations and estimates upon which to base other important calculations. The numbers you get from knowing your true capital expenditures can assist you in developing operational plans, timelines for upgrades and valuations for investors.

A good CAPEX consultant will be able to estimate your capital requirements out to 30 years. From there, you can work to make your long-term plans more commercially viable.

CAPEX vs OPEX

CAPEX is not to be confused with OPEX, which refers to day-to-day operational expenses. These calculations are treated very differently for accounting and tax purposes, and they also represent to different aspects of a company's expenditures. They are both, however, very useful metrics to understand.

Building your CAPEX Budget

In order to build a defensible budget for your long-term assets, you must understand depreciation and the way that it is recognised by the government versus the way that it is recognised commercially. In short, optimising the true value of your assets means knowing how to present those assets for accounting purposes and truly understanding the internal value that asset has to your company.

The depreciation schedule and lifecycle report that should be a part of every long-term asset can be quite difficult to generate internally. This is why a CAPEX expert should be consulted if you have any plans within your company that use large assets over an extended period of time. A good partner will understand how to calculate CAPEX and use those calculations to your benefit while keeping you in compliance with all relevant government regulations.

Testimonials

We Bring Out the Best in These Businesses

Justin Clark

Team Leader at Hutchinson Builders

Hutchinson engaged BBM to manage maintenance during the DLP for a project where our client has very specific and detailed maintenance requirements. BBM have always conducted the works in a professional manner, meeting response and completion times while complying with our client’s requirements.

BBM have assisted in continuing our exceptional relationship with our client and have demonstrated the highest level of professionalism, flexibility and high work ethic. In a very challenging and demanding environment, their management team are always approachable and willing to provide us with solutions to any issues arising.

Jayde Agnew

General Manager of Iglu Pty Ltd

We are very pleased with the work BBM has done on our behalf, we have found their services to be prompt, efficient and professional. The Team are always available to help with projects large and small, nothing is ever too much trouble.

Paul and his team are very hard-working and highly organised with great communication skills, we have always been very impressed with the way that they approach projects and particularly their focus on Work, Health & Safety.

We look forward to working with BBM on future projects.

Peter Dunn

Senior Facilities Manager, Investa

Before I started using BBM at Deutsche Bank Place I was frustrated with our previous supplier’s poor delivery. Paul Lardi approached me and we decided to give them a try. Their work is always completed on time and budget with no issues. They understand the complexities of working in a Premium Grade commercial asset and we couldn’t be happier.

Scott Muir

Director at ecoHVAC

EcoHVAC use BBM as their preferred installer of our equipment. As a supplier of high quality products, we understand that only installers who undertake the utmost of care and precision can be used and BBM have always proven themselves as a more that trustworthy contractor. Their communication with our clients in the lead up and follow up calls after the installation is complete makes for a very satisfied customer.

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