Capital planning runs on its own language and if you don’t know it, you’re already behind.
Every industry has its shorthand and every region its nuance. If you’re managing CapEx, understanding the right terminology isn’t optional it’s operational.
From “AFE” in oil and gas to “CER” in manufacturing, this guide breaks down the most common CapEx request terms by industry, history, and region so you can speak the language of investment with confidence.
What Is a Capital Expenditure Request?
A Capital Expenditure Request (CapEx Request) is a formal proposal to approve and fund a significant investment in assets, infrastructure, or long-term projects. These requests typically include cost estimates, justifications, strategic alignment, and a chain of approvals.
CapEx requests are essential tools for:
- Managing large budgets
- Preventing cost overruns
- Ensuring transparency and accountability
Common CapEx Terms by Industry
Oil & Gas: AFE (Authorization for Expenditure)
- Definition: AFE is the standard in oil and gas, especially for drilling and field development projects.
- Origin: Dates back to early 1900s in rail and utility sectors.
- Purpose: Manages joint venture costs, ensures partner approval, and controls project budgets.
Manufacturing & Industrial: CER, CAR, RCE
- CER (Capital Expenditure Request): Most common term for corporate CapEx approvals.
- CAR (Capital Appropriation Request): Highlights budget allocation; widely used since the 1950s.
- RCE (Request for Capital Expenditure): Alternative naming used by companies like AbbVie.
Technology: CER, CapEx Proposal, Business Case
- Use Case: Common for data center, software, or infrastructure investments.
- Focus: ROI, strategic alignment, and fast internal workflows.
- Bonus Term: Project Authorization Request (PAR) sometimes used.
Healthcare: Capital Equipment Request, Capital Project Request
- Specialization: Distinct forms for equipment vs. construction.
- Importance: Justifications include patient outcomes, compliance, and community needs.
Government & Public Sector: Appropriation Request, Capital Outlay, CIP Request
- Appropriation Request: Used to secure legislative budget approval.
- Capital Outlay Request: Popular in U.S. school districts and local governments.
- CIP Request (Capital Improvement Program): For infrastructure and long-term planning.
CapEx Terms: At a Glance
| Term | Common Industries | Since | Notes |
|---|---|---|---|
| AFE | Oil & Gas | 1910s | Standard for joint projects |
| CER | General Corporate | 1970s | Most widely used term |
| CAR | Manufacturing | 1950s | Emphasizes budget allocation |
| RCE | Pharma/Manufacturing | 2000s | Alternate to CER |
| CEA | Utilities/Various | 1990s | Refers to the final authorization |
| CEAR | Public Utilities | 1990s | Formal board/committee use |
| Capital Equipment Request | Healthcare | 1980s | Equipment-specific approvals |
| Capital Outlay | Public Sector | 1960s | Common in U.S. budgeting |
Why Terminology Matters
Each term reflects:
- Approval workflows
- Industry history
- Regulatory environments
- Internal budgeting practices
While the names differ, the core function remains the same: ensure capital is spent wisely, legally, and with accountability.
Final Thoughts
Capital investment isn’t just about funding projects, it’s about making disciplined, high-stakes decisions with confidence. Whether you’re filing an AFE, submitting a CER, or reviewing a Capital Outlay Request, you’re engaging in a legacy of financial governance that demands precision.
Caprivi Solutions helps organizations manage the entire CapEx lifecycle from project ideation to post investment review.
If you’re ready to streamline workflows, improve compliance, and gain full control of your capital investments, let’s talk.
