On-line Bidding

Following the utilisation of online bidding (also known as reverse electronic auctions) by clients and suppliers in the construction industry, CIC was quick to react to this kind of practice and revealed to the press the pitfalls limitations. Specifically, CIC warned that online bidding should not be used for procuring professional services.

CIC established the Online Bidding Response Group to trace the development of this tool and give feedback to the industry. The response group had representatives from CIC member organisations and other umbrella bodies like the Construction Products Association and the Specialist Engineering Contractors Group. The group produced a briefing note on online bidding which explained the process, advantages and disadvantages and gave recommendations on where it should be used.  However, the document quickly dated and since the topic is no longer ‘hot’, it has been decided to withdraw it from circulation.

The OGC has produced an online tool for public sector clients to use to decide if online bidding is appropriate. 

The tool can be found here