An online reverse auction is an Internet-based bidding event with a fixed deadline, hosted by a single buyer, in which multiple suppliers compete for business. Goods and services alike can be obtained through this process.
During the rounds of bidding, competitors can see each other's bids, though they do not know the identities of specific bidders. In most cases, the lowest bid is selected. Online reverse auctions are now being used to find the lowest bidder on construction services. While this procurement method may appear to be a high-tech innovation, ultimately, it only propagates the negative results brought about by low-bid, price-only selection.