New construction of a structure or new construction of additional facilities. Donated land and buildings. Certain permanent improvement projects will not fall within easily defined parameters for capitalization. Any major renovation of a building such as removal of all windows and replacement with new or a total re-roofing job will be capitalized. Certain permanent improvement projects will not be capitalized.
Examples are interior painting of a dormitory and exterior waterproofing.
Generally, if the work is of a replacement nature and does not materially lengthen the useful life of a structure, it will not be capitalized. The CHE will then forward its actions to the SBCB prior to November 1. If approved, the JBRC will act probably within 90 days concerning funding of legislatively approved CIB projects. The Division of General Services, State Engineer's Office, is responsible for overseeing the execution phase of the state permanent improvement project. Other requirements include a one-year warranty inspection.