Workflow Templates: Capital Expenditure (CapEx) Approval checklist

Project Evaluation

Define the scope and objectives of the proposed capital project.

Conduct a feasibility study to assess the viability and potential risks.

Prepare a detailed project proposal including timelines and milestones.

Financial Analysis

Estimate the total cost of ownership, including initial purchase, installation, and ongoing operational costs.

Perform a cost-benefit analysis comparing the expected benefits to the projected costs.

Calculate key financial metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), and payback period.

Budgetary Consideration

Review the current budget to ensure availability of funds for the capital expenditure.

Analyze the impact of the CapEx on the company's financial statements and ratios.

Seek approval for any budget amendments if the expenditure was not originally planned.

Approval Process

Submit the CapEx request with all supporting documentation to the designated approval authority.

Address any queries or concerns raised by the approval committee or stakeholders.

Obtain final approval signatures and document the decision for record-keeping.

Procurement Procedures

Develop a procurement plan outlining vendor selection criteria and timelines.

Solicit multiple quotations or bids from potential suppliers or contractors.

Evaluate the proposals and select the vendor that offers the best value for money.

Implementation and Monitoring

Develop a project implementation plan, including resource allocation and scheduling.

Monitor project progress regularly against the plan and budget, and report discrepancies.

Conduct periodic reviews to assess the project's ongoing alignment with strategic goals.

Post-implementation Review

Perform a post-completion audit to evaluate the project's success and adherence to budget.

Document lessons learned and best practices for future capital expenditure projects.

Update the asset register and ensure proper capitalization of the asset in the financial system.

Template Library Home

Capital Expenditure (CapEx) Approval checklist

Project Evaluation

Financial Analysis

Budgetary Consideration

Approval Process

Procurement Procedures

Implementation and Monitoring

Post-implementation Review

Use this template in Manifestly

Template Library Home

Capital Expenditure (CapEx) Approval checklist

Project Evaluation

Financial Analysis

Budgetary Consideration

Approval Process

Procurement Procedures

Implementation and Monitoring

Post-implementation Review

Use this template in Manifestly

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