Reverse Auctions

Chris_J · #1 (**permalink**) 10-18-2005, 09:41 AM

Has anybody ever been involved with one? Are there any strategies we should know? We do know how they work, just have never been involved with doing one. The auction has $5000 bid increments.

Any suggestions would be helpful.

Chris

Robert Kulinski · #2 (**permalink**) 10-18-2005, 03:58 PM

The AGC has a pretty good collection of information on the reverse auction process for contracting companies. Go to :

www.agc.org On the right side of the page is a pulldown menu for quick links. Click on reverse auction. They have a boatload of info.

The reverse auction was invented for procurement people who have to buy widgets. When it comes to demolition it is like fitting a square peg in a round hole. It assumes right from the get go that all contractors are identical in terms of the quality of service they can provide, which we know is not the case. Some of the worst contractors out there have the best promotional material and can fly through the prequalification process, but then when it comes time for them to perform the project they show up on site with a donkey and a root rake.

Chris_J · #3 (**permalink**) 10-19-2005, 03:51 PM

Great link Robert

Very helpful information. The "White Paper" is a must read for all.

Quote:

It assumes right from the get go that all contractors are identical in terms of the quality of service they can provide

Isn't that the truth? You know they say anybody with a sledge hammer and a pick-up truck can be a demolition contractor.

Robert Kulinski · #4 (**permalink**) 10-19-2005, 09:10 PM

IMHO, unless you really, really want the job I would tell them to take a hike.

Demolition is and probably always will be a relationship oriented business. If somebody trusts your abilities and your price isn't stupidly out of the ballpark the odds are good you will get the project. I know of very large demolition projects which still amounted to less than one per cent of the overall construction budget. What Professional would be so foolish as to take a chance on setting the entire project off on the wrong foot?

**James** · #5 (**permalink**) 10-24-2005, 08:12 PM

Quote:

Demolition is and probably always will be a relationship oriented business

I totally agree.

About a year ago I was involved with a few reverse auctions. They are a pain in the butt. We had pretty much the same competition that we always had on regular projects so it was just like bidding a regular job in a way.