what does "expressions of interest" mean

steeljack · 30-09-2010, 17:53

whilst checking the "Evening Telegraph" website came across this story about the LCC and local school funding

Taxpayers left with £900k bill over failed schools plan (From Lancashire Telegraph)

this bit from the story caught my interest ....

"Yesterday the county council’s schools chief Suzie Charles revealed the cost to the cash-strapped authority.
Responding to a question from Great Harwood Labour councillor Ciaran Wells, she told councillors: “£893,000 was spent on architects’ fees, feasibility studies and expressions of interest.”

Can understand architects fees and feasibility studies costing money, but can someone who understands gibberish please explain what the term "Expressions of interest" means and how it costs money?

Tealeaf · 30-09-2010, 18:15

It means that if a company is prepared to put togeather a legal document expressing their interest in tendering for a contract or project which is subsequently cancelled then they can then recoup the costs.

It all relates to the public sector and ignores any risk element in bidding which is to be found in the private sector.

steeljack · 30-09-2010, 19:03

Quote:

Originally Posted by Tealeaf

It means that if a company is prepared to put togeather a legal document expressing their interest in tendering for a contract or project which is subsequently cancelled then they can then recoup the costs.

It all relates to the public sector and ignores any risk element in bidding which is to be found in the private sector.

Thanks , so its a refundable "pre selection bid" and if 20 or 30 different companies had shown an interest they would all get their money back even though only one would be finally selected for each particular phase .

Just seems a bit odd , know that in my area if a County asks for bids and they come back too high they can be rejected and put out to tender again at no cost to the County

Tealeaf · 30-09-2010, 19:10

Quote:

Originally Posted by steeljack

Thanks , so its a refundable "pre selection bid" and if 20 or 30 different companies had shown an interest they would all get their money back even though only one would be finally selected for each particular phase .

Just seems a bit odd , know that in my area if a County asks for bids and they come back too high they can be rejected and put out to tender again at no cost to the County

The key word is cancellation. If the project goes ahead and they lose, then it is at their risk; if it's cancelled, then the taxpayer pays for the bid costs - although one thing is for sure - every bidding company will try to offload as much as possible of a proportion of overhead and other ancillary costs on to the taxpayer.