PFI/PPP transaction costs usually focus on the procurement process with public sector costs averaging 3.5% - 3.8% of the capital value of a project (private winning bid costs of 3.8% and failed bidder costs of 5.0%) (Dudkin and Valila, 2005). The cost of financial, legal, technical and other advisers alone averaged 2.5% although an NAO review of improving PFI tendering failed to disclose the full transaction costs (NAO, 2007a). Transaction costs should include the public cost of options appraisal assessment, value for money analysis, outline business case and PFI/PPP team costs that are incurred before a decision is made to commence procurement. Public sector transaction costs are, therefore, estimated to be between 4.5% - 5.0% of the capital costs, about 2.0% higher than public investment (see Part 8).