What Is a Capital Project?

A capital construction project is a grass-roots unit that prepares and implements a capital construction plan. It refers to a construction unit composed of one or more individual projects within the scope of an overall design or preliminary design, with unified accounting in economics and unified management in administration. Generally, an enterprise (or joint enterprise), public institution or independent project is taken as a construction project.

Capital construction project

Right!

A capital construction project is a grass-roots unit that prepares and implements a capital construction plan. It refers to a construction unit composed of one or more individual projects within the scope of an overall design or preliminary design, with unified accounting in economics and unified management in administration. Generally, an enterprise (or joint enterprise), public institution or independent project is taken as a construction project.

Several independent projects that do not belong to a general design, are separately accounted for economically, and are not directly related to the process flow should be listed as several capital construction projects. Capital construction projects consist of several individual projects. ^[1]

In China, an enterprise, institution or administrative unit is generally used as a capital construction project. For example, a joint enterprise in industrial construction, or an independent factory, mine; independent farms, forest farms, and reservoirs for agriculture, forestry, and water conservancy construction; a railway line and a port for transportation construction; independent schools, newspapers, Theater, etc. Several engineering projects that are constructed in phases within the same overall design shall be combined into one construction project; projects that do not fall within the same overall design scope shall not be considered as one construction project.

To expand production capacity (or increase project benefits) as the main purpose of construction

For planning and management needs, construction projects can be classified from different perspectives:

According to the construction phase of the project, it is divided into preliminary work projects, preparation projects, construction (in-progress) projects, completed projects and completed projects

According to the nature of construction,

The construction of capital construction projects is the foundation of national economic construction. Socialist countries attach great importance to the planning and management of construction projects. The national economic and social development plan is based on a comprehensive and thematic balance to carefully plan the types and numbers of construction projects in various sectors and regions of the national economy within a certain period of time, as well as those engaged in pre-construction work, organization of construction, and completion of production in this period. The number of projects in order to reasonably determine the scale, speed, proportion and layout of capital construction, and to fully improve the economic effect of capital construction investment.