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Reverse Auction Bidding

The subject of reverse auctions is addressed in this section with several documents prepared by the AGCA on this issue. You will find the information provided here very instructive on this issue, including reasons that the MBI and AGCA oppose this method of public (and private for that matter) procurement of construction service. In summary, this method reduces the construction process to a commodity. This trend was hot for a while and Iowa had its moments, but the record shows that this system does not work. MBI expressed its position early on in the discussion and the result has been good. We just don’t see this option in the public sector, because it violates competitive bidding laws. Private owners have figured out that they can be outmaneuvered in this process and have discontinued it as a popular sport for the bidder pool, notwithstanding an occasional controversy from a big box retailer or two.