Contractor groups have spoken out against reverse auction bidding – a process where firms are invited to undercut lowest price tenders online.
Both the ECA and the HVCA are contributing to an impending CLG report into the implications for members.

"This is a step backwards," said Ken Tracey, commercial officer with the ECA. "It is tantamount to Dutch auctioning and is contrary to all the Latham and Egan initiatives."

While still in its infancy, trade associations are concerned that the process may take off. GlaxoSmithKline is one major client that has used the process to procure m&e services and contractors working in the petrochemical sector are also concerned that its clients are examining the process following extensive use in the USA.

"Online bidding has its virtues if used in an ethical way," points out Tracey. "It saves on tendering costs, for example." Unfortunately, clients may be more likely to use the process for simply driving down costs and opting for lowest price rather than best value.