This is a rather odd phrase: "Capitalize deprecation expense"

Depreciation is the same as Amortization, in that they are "value changes over time" on the Value or the asset or the loan balance of a liability. The amount you are allowed to "take over time" is offset as Expense, in consideration for that change.

Think of Construction as "making my own inventory" and that's why all the direct associated Costs are not Costs. They are Investment, or Capital Improvement. They didn't spend money on doors or windows; that is not Expense, because the doors and windows are right there if you look. That is what Capitalize means = putting money into the Asset. Further investments, until this total is your COGS, or Basis for what you now own. And until its use is determined, it isn't depreciating at all.

Their projects do not get the same treatment as their own capital assets (equipment) used for their work, such as Forklift or Truck.