E-auctions in tendering - Revision history

Designing Buildings at 10:38, 17 July 2024

2024-07-17T10:38:10Z

← Older revision		Revision as of 10:38, 17 July 2024
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	There is some scepticism in the industry about using electronic auction platforms to tender for construction projects. However, in the future, the industry is likely to refine the process to avoid the current challenges and it might become more widely used.		There is some scepticism in the industry about using electronic auction platforms to tender for construction projects. However, in the future, the industry is likely to refine the process to avoid the current challenges and it might become more widely used.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Auction theory.		* Auction theory.
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	* Electronic auctions under the Single Procurement Document (Scotland).		* Electronic auctions under the Single Procurement Document (Scotland).
	* E-procurement.		* E-procurement.
		+	* ESignatures.
	* E-sourcing.		* E-sourcing.
	* Invitation to tender.		* Invitation to tender.

Editor at 15:51, 23 September 2021

2021-09-23T15:51:21Z

← Older revision		Revision as of 15:51, 23 September 2021
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	* Bidder.		* Bidder.
	* Computers in construction tendering.		* Computers in construction tendering.
		+	* Electronic auctions under the Single Procurement Document (Scotland).
	* E-procurement.		* E-procurement.
	* E-sourcing.		* E-sourcing.

Editor at 21:14, 12 November 2020

2020-11-12T21:14:24Z

← Older revision		Revision as of 21:14, 12 November 2020
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	* Computers in construction tendering.		* Computers in construction tendering.
	* E-procurement.		* E-procurement.
		+	* E-sourcing.
	* Invitation to tender.		* Invitation to tender.
	* Managing the procurement process.		* Managing the procurement process.
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	* Tender process.		* Tender process.

−	[[Category:Construction_management]] [[Category:Procurement]]	+	[[Category:DCN_Research,_Development_and_Innovation]] [[Category:DCN_Software]] [[Category:Construction_management]] [[Category:Procurement]]

Designing Buildings at 14:15, 9 March 2020

2020-03-09T14:15:20Z

← Older revision		Revision as of 14:15, 9 March 2020
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	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

		+	* Auction theory.
	* Bidder.		* Bidder.
	* Computers in construction tendering.		* Computers in construction tendering.

Designing Buildings at 14:10, 9 March 2020

2020-03-09T14:10:45Z

← Older revision		Revision as of 14:10, 9 March 2020
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	* Potential bidders may be unable to compete due to software requirements or the complexities of procedures.		* Potential bidders may be unable to compete due to software requirements or the complexities of procedures.

−	To avoid some of the challenges of ‘open auctions’ the procurement team ~~will need to~~ ensure that all documents and procedures are well defined. It is also advisable to use known contractors that the client's team are familiar with and have market-tested before~~. There currently seems to be more weighted challenges than benefits for open auctions as a procurement route in construction~~.	+	To avoid some of the challenges of ‘open auctions’ the procurement team should ensure that all documents and procedures are well defined. It is also advisable to use known contractors that the client's team are familiar with and have market-tested before.

	= Closed/Private auctions =		= Closed/Private auctions =

−	In private/closed auctions a selected number of bidders will compete to submit a price. The bidders will have no visibility of who they are competing against or see the prices of bids entered. ~~A closed procurement route might be compared~~ to ~~the~~ traditional route of procurement ~~except that everything~~ is done electronically.	+	In private/closed auctions a selected number of bidders will compete to submit a price. The bidders will have no visibility of who they are competing against or see the prices of bids entered. This is similar to traditional route for procurement other than it is done electronically.

	= Conclusion =		= Conclusion =

−	~~The construction industry still uses the traditional route of procurement and not all companies have implemented E-auctions as a route of procurement.~~ There is some scepticism in the industry using electronic auction platforms to tender for construction projects. In future, the industry ~~might~~ refine the process to avoid the current challenges ~~that electronic auctions present~~ and it might become more widely used.	+	There is some scepticism in the industry about using electronic auction platforms to tender for construction projects. However, in the future, the industry is likely to refine the process to avoid the current challenges and it might become more widely used.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	* Bidder.		* Bidder.
	* Computers in construction tendering.		* Computers in construction tendering.
		+	* E-procurement.
	* Invitation to tender.		* Invitation to tender.
	* Managing the procurement process.		* Managing the procurement process.
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	* Supply chains in construction.		* Supply chains in construction.
	* The benefits of e-procurement in construction.		* The benefits of e-procurement in construction.
−	* Tender ~~documentation~~.	+	* Tender process.

	[[Category:Construction_management]] [[Category:Procurement]]		[[Category:Construction_management]] [[Category:Procurement]]

Designing Buildings at 14:06, 9 March 2020

2020-03-09T14:06:53Z

← Older revision		Revision as of 14:06, 9 March 2020
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	= Introduction =		= Introduction =

−	E-auctioning ~~falls within the category~~ of E-procurement. E-procurement refers to tendering processes carried out online and through information and networking systems. More information is available in the article on E-procurement.	+	E-auctioning is a form of E-procurement. E-procurement refers to tendering processes carried out online and through information and networking systems. More information is available in the article on E-procurement.

−	E-auctioning refers to a web-based system that allows potential suppliers to compete online, in real-time, pricing for goods/services ~~under auction~~. E-auctioning can be used ~~like~~ the platform e-bay where the highest bidder wins. In construction, this can be used in reverse where contractors will compete for business in an online event by submitting the lowest bid. In the industry~~, this~~ is referred to as reverse auctioning. The reverse auctions can either be open or closed/private.	+	E-auctioning refers to a web-based system that allows potential suppliers to compete online, in real-time, pricing for goods/services. E-auctioning can be used in a similar way to the platform e-bay where the highest bidder wins. In construction, this can be used in reverse where contractors will compete for business in an online event by submitting the lowest bid. In the industry. This is referred to as reverse auctioning. The reverse auctions can either be open or closed/private.

	= Open auctions =		= Open auctions =

−	In open auctions, a great number of competitors can be invited to compete. Bid pricing will either be visible or competitors will have visibility of their ranking. During an e-~~Auction~~, the bidder ~~has the opportunity of reducing the~~ price in successive bids within a given timescale~~. The result can be that the bidder does not offer the best or the lowest price and only provides a lower price than the previous bid~~.	+	In open auctions, a great number of competitors can be invited to compete. Bid pricing will either be visible or competitors will have visibility of their ranking. During the e-auction, the bidder can reduce their price in successive bids within a given timescale.

−	Some of the benefits of open auctions:	+	Some of the benefits of open auctions include:

−	* The contactor involved can progressively lower their bid	+	* The contactor involved can progressively lower their bid.
−	* ~~Open auction procurement~~ can save time on the project program with lengthy negotiations cut short.	+	* It can save time on the project program with lengthy negotiations cut short.
−	* There is possible financial savings ~~to e-tendering procurement~~ due to ~~less~~ transactional costs.	+	* There are possible financial savings due to lower transactional costs.

−	Some of the challenges of open auctions:	+	Some of the challenges of open auctions include:

−	* ~~Judgement~~ errors of ~~contractors are possible and can lead to~~ reduced quality ~~of bids causing later~~ disputes.	+	* Contractors can make errors of judgement, ultimately resulting in reduced quality and disputes.
	* It can promote the ‘lowest price’ rather than the best value for money.		* It can promote the ‘lowest price’ rather than the best value for money.
−	* ~~Possibility of software~~ errors can create additional ~~cost and time~~ and potential disputes	+	* Software errors can create additional costs, delays and potential disputes
−	* ~~Restrict potential~~ bidders ~~from competing~~ due to software requirements ~~and~~ complexities of ~~online required~~ procedures.	+	* Potential bidders may be unable to compete due to software requirements or the complexities of procedures.

	To avoid some of the challenges of ‘open auctions’ the procurement team will need to ensure that all documents and procedures are well defined. It is also advisable to use known contractors that the client's team are familiar with and have market-tested before. There currently seems to be more weighted challenges than benefits for open auctions as a procurement route in construction.		To avoid some of the challenges of ‘open auctions’ the procurement team will need to ensure that all documents and procedures are well defined. It is also advisable to use known contractors that the client's team are familiar with and have market-tested before. There currently seems to be more weighted challenges than benefits for open auctions as a procurement route in construction.

Editor2 at 10:09, 6 March 2020

2020-03-06T10:09:00Z

← Older revision		Revision as of 10:09, 6 March 2020
Line 1:		Line 1:
	= Introduction =		= Introduction =

−	E-auctioning falls within the category of E-procurement. E-procurement refers to tendering processes carried out online and through information and networking systems. ~~See~~ the article on E-procurement ~~for more information~~.	+	E-auctioning falls within the category of E-procurement. E-procurement refers to tendering processes carried out online and through information and networking systems. More information is available in the article on E-procurement.

	E-auctioning refers to a web-based system that allows potential suppliers to compete online, in real-time, pricing for goods/services under auction. E-auctioning can be used like the platform e-bay where the highest bidder wins. In construction, this can be used in reverse where contractors will compete for business in an online event by submitting the lowest bid. In the industry, this is referred to as reverse auctioning. The reverse auctions can either be open or closed/private.		E-auctioning refers to a web-based system that allows potential suppliers to compete online, in real-time, pricing for goods/services under auction. E-auctioning can be used like the platform e-bay where the highest bidder wins. In construction, this can be used in reverse where contractors will compete for business in an online event by submitting the lowest bid. In the industry, this is referred to as reverse auctioning. The reverse auctions can either be open or closed/private.
Line 22:		Line 22:
	* Restrict potential bidders from competing due to software requirements and complexities of online required procedures.		* Restrict potential bidders from competing due to software requirements and complexities of online required procedures.

−	To avoid some of the challenges of ‘open auctions’ the procurement team will need to ensure that all documents and procedures are well defined. It is also advisable to use known contractors that the client's team ~~have~~ are familiar with and have market-tested before. There currently seems to be more weighted challenges than benefits for open auctions as a procurement route in construction.	+	To avoid some of the challenges of ‘open auctions’ the procurement team will need to ensure that all documents and procedures are well defined. It is also advisable to use known contractors that the client's team are familiar with and have market-tested before. There currently seems to be more weighted challenges than benefits for open auctions as a procurement route in construction.

	= Closed/Private auctions =		= Closed/Private auctions =

Editor2: Created page with "= Introduction = E-auctioning falls within the category of E-procurement. E-procurement refers to tendering processes carried out online and through information and networking s..."

2020-03-06T10:00:33Z

Created page with "= Introduction = E-auctioning falls within the category of E-procurement. E-procurement refers to tendering processes carried out online and through information and networking s..."

New page

= Introduction =

E-auctioning falls within the category of E-procurement. E-procurement refers to tendering processes carried out online and through information and networking systems. See the article on E-procurement for more information.

E-auctioning refers to a web-based system that allows potential suppliers to compete online, in real-time, pricing for goods/services under auction. E-auctioning can be used like the platform e-bay where the highest bidder wins. In construction, this can be used in reverse where contractors will compete for business in an online event by submitting the lowest bid. In the industry, this is referred to as reverse auctioning. The reverse auctions can either be open or closed/private.

= Open auctions =

In open auctions, a great number of competitors can be invited to compete. Bid pricing will either be visible or competitors will have visibility of their ranking. During an e-Auction, the bidder has the opportunity of reducing the price in successive bids within a given timescale. The result can be that the bidder does not offer the best or the lowest price and only provides a lower price than the previous bid.

Some of the benefits of open auctions:

* The contactor involved can progressively lower their bid
* Open auction procurement can save time on the project program with lengthy negotiations cut short.
* There is possible financial savings to e-tendering procurement due to less transactional costs.

Some of the challenges of open auctions:

* Judgement errors of contractors are possible and can lead to reduced quality of bids causing later disputes.
* It can promote the ‘lowest price’ rather than the best value for money.
* Possibility of software errors can create additional cost and time and potential disputes
* Restrict potential bidders from competing due to software requirements and complexities of online required procedures.

To avoid some of the challenges of ‘open auctions’ the procurement team will need to ensure that all documents and procedures are well defined. It is also advisable to use known contractors that the client's team have are familiar with and have market-tested before. There currently seems to be more weighted challenges than benefits for open auctions as a procurement route in construction.

= Closed/Private auctions =

In private/closed auctions a selected number of bidders will compete to submit a price. The bidders will have no visibility of who they are competing against or see the prices of bids entered. A closed procurement route might be compared to the traditional route of procurement except that everything is done electronically.

= Conclusion =

The construction industry still uses the traditional route of procurement and not all companies have implemented E-auctions as a route of procurement. There is some scepticism in the industry using electronic auction platforms to tender for construction projects. In future, the industry might refine the process to avoid the current challenges that electronic auctions present and it might become more widely used.

= Related articles on Designing Buildings Wiki =

* Bidder.
* Computers in construction tendering.
* Invitation to tender.
* Managing the procurement process.
* Procurement route.
* Supply chain management.
* Supply chains in construction.
* The benefits of e-procurement in construction.
* Tender documentation.

[[Category:Construction_management]] [[Category:Procurement]]