Working CapEx and OpEx Together

September 2, 2014

Capital Expenses versus Operating Expenses
Capital expenses and operating expenses can be deployed to more effectively use your organization’s budget. Find out how!


Replace aging assets with more efficient alternatives prior to end of useful life

  • Replace chillers or boilers with more efficient models to reduce energy spend
  • Replace traditional roofs with new roofing alternatives (super insulated, reflective, green or living) to reduce maintenance and utility costs
  • Enhance curtain walls with more efficient systems or elements (super insulation, efficient glazing, shade structures) to reduce energy spend

Leverage technology to reduce OpEx

  • Replace analog with digital controls to increase flexibility and reduce run time
  • Implement alternative energy measures (combined heat & power units, solar arrays, wind turbines) to reduce dependency on the grid and manage OpEx
  • Investigate alternative funding sources to defray CapEx for implementing new technology (utility rebates, private grants, government subsidies)


Identify component-level repairs and upgrades to extend the life of the overall system

  • Replace pneumatic or analog controls with a digital system to increase control flexibility
  • Install lighting sensors (occupancy, daylight, time) and relamp existing fixtures with energy efficient lamps (T-5 or LED) and replace ballasts with electronic
  • Install CO2 sensors and variable speed drives on ventilation system to limit run hours and optimize air flow

Identify where improved preventative maintenance can extend system life and reduce risk of breakdown

  • Identify all capital equipment by age and implement prescriptive preventative maintenance plan via trackable system
  • Perform annual inspections on all roofs and curtain walls and document condition to identify trends or problems

See how some of our corporate clients have used these strategies to enhance their capital planning programs.

One Response to “Working CapEx and OpEx Together”

  1. Brian Nalls says:

    Great ideas for spending your budget dollars wisely through replacement and smarter maintenance. Finding the right Service partner that uses software with a rich data-capture capabilities can greatly improve the ability to know when it’s time to replace vs maintain.

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