The capital plan is a planning tool used by Management to provide financial coverage for the forecasted capital, repair and maintenance expenditures on a building. The study can, when properly executed, identify problematic areas that will require closer examination, thereby altering the method/timing of funding.

The capital plan is intended to comply with what is reasonably expected to provide sufficient funds for the major repair, replacement and maintenance of all the components of the property. It is calculated on the basis of the expected repair, replacement and maintenance costs and the life expectancy of the common elements of the building and site components.