Bid costs in small schemes

4.38  Similarly, in addition to their own internal costs, bidders must typically meet the costs of technical, financial, design and legal advisors. These costs do not necessarily fall in proportion to the size of the project, and so drive up the relative cost of small PFI schemes. For example, one private sector contractor has suggested that their bid costs, as a proportion of a project's capital value, are 33 per cent lower for a £50 million project compared to a project costing £20 million.