On-line reverse auctions in construction industry

Abstract

The paper examines factors influencing the decision to use, and adoption rate, of online reverse auctions in construction sector. The main factors are identified and comprehensively discussed taking into account particularities of construction industry. The adoption level of this procurement route is examined via a web survey based on a selected sample of construction companies and clients from the Czech construction sector. It was established that online reverse auctions are the most widely used e-procurement tool in the Czech construction sector. Advantages of this procurement procedure are more significantly perceived by investors.