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. Elektroničke reverzne aukcije u građevinarstvu U radu se analiziraju faktori koji utječu na donošenje odluka te brzina uvođenja postupka elektroničke reverzne aukcije u području građevinarstva. Određuju se i detaljno razmatraju osnovni faktori uzimajući u obzir posebnosti građevinskog sektora. Stupanj prihvaćenosti ovog načina nabave ispitan je kroz on line anketu na odabranom uzorku građevinskih tvrtki i naručitelja iz građevinskog sektora u Češkoj. Ustanovljeno je da su elektroničke reverzne aukcije najzastupljeniji način on line nabave u češkom sektoru građevinarstva. Prednosti ovakvog postupka nabave više uočavaju investitori.

Making the most of game theory in the supplier selection process for complex items

“…Empirically testing the outcomes of the application of game theory models is rare within the supplier selection literature and these findings enable refining existing theory and developing a better understanding of its consequences (Mithas and Jones, 2007;Wittmann 2009 Tassabehji, 2010). Second, this study responds to calls for further research and analytical prediction into the application of reverse auctions for complex and highly customised items (Aital, Pawar, and Behl 2017;Hanák and Šelih 2017;Schoenherr 2019;Fugger, Katok, and Wambach 2019).…”

“…Previous applications of reverse auctions have been mainly limited to the purchasing of commodities and scholars have recently called for further research to study if reverse auctions are suitable only for commodities or complex and highly customised items can also be put up for bidding (Aital, Pawar, and Behl 2017). In the context of the construction sector, Hanák and Šelih (2017) highlighted the complexity and specificities of construction projects as key factors behind the limited research on the application of reverse auctions. Following from this, Schoenherr (2019) argued that reverse auctions can be applied to complex and highly engineering goods if the specifications are well understood and developed in detail.…”

“…This is in line with previous research RW.ERRORRW.ERROR(Caniëls and van Raaij 2009; Hawkins, Gravier, and Wittmann 2010; Hanák and Šelih 2017; RW.ERROR -Unable to find reference:doc:5ddf154de4b0e775cfc5efae; Fugger, Katok, and Wambach 2019; Schoenherr 2019) that argues that applying reverse auctions can be challenging in comparison to other traditional procurement methods if the specifications are not explicitly detailed in advance. Hanák and Šelih (2017) added that 'in the case of construction works, this requires, above all, the preparation of high-quality project documentation'.…”