Capital Purchases are procurement activities that involve the acquisition of long-term assets such as buildings, equipment or land. Characterized by larger dollar amounts and longer timelines, capital purchases require higher levels of planning and review prior to signing off on any commitments. Examples include construction projects, computer hardware, long-term leases and land acquisitions. Capital Purchasing is an essential part of any business planning process, as it helps ensure that investments have been made with careful consideration for costs and potential returns.