Capital Commitment

This is when a company promises to spend future capital on a specific long-term asset for a certain amount of time. Commitments are tough. Like exercising every day. For. The. Rest. Of. Your. Life. Or showing up to work on time…forever.

But yes, even companies make commitments…Capital commitments get made when an expensive project is dilated 7 inches - i.e. just before its birth...because the process of raising a big project requires the commitment of banks, regulators, builders, managers, unions, and 50 other interested parties. Yes, it takes a village...