Hi lally,
Companies typically capitalize costs at the project level if they run long-term projects that run over several financial periods (months, years). Examples are large construction contracts but also fixed assets that are built internally for which costs are initially collected at the project level and then shifted to fixed assets.
The biggest issue whether or not you are allowed capitalizing costs is whether local accounting standards allow for that. Many countries follow a very conservative Approach and capitalizing costs is often not allowed for all kind of projects. So, you need to clarify with your accountants whether or not costs can be capitalized or not.
All the best,
Ludwig