Maximize
your chances of success when you post reverse auction projects by
ensuring the suppliers know what you need. Details are critical!
Reverse auction websites allow you to post a description of something
you need to have done and receive multiple bids on it. The project
can be any service you need, or even any item you want to buy. For
the purposes of this article, we'll only deal with reverse auction of
services. You can apply similar thinking to posting an item you want
to buy through reverse auction.
To post a project, you will need to sign up with a reverse auction
site, and describe what you want done. Potential suppliers bid on the
project, normally in an open environment where they can see each
others' bids. You then select the winning supplier based on what's
important to you: supplier rating, price, licensing, insurance,
bonding etc. You and the supplier contract for the work through the
website, and then execute the project based on that contract: The
supplier performs the work, you pay according to terms established
during the contracting phase. At the end, you each rate the other on
their performance: Was the supplier competent, timely, tidy etc.? He
rates you on whether you were clear in your description of the
project, paid on time, didn't change the scope (or adjusted the
contract if the scope needed to be changed) etc.
The website's function is to act as a marketplace, but not as an
arbitrator. So if there were actually a problem between the parties,
you would want to sort it out in a normal business or legal process.
This thought brings up the question of how to avoid misunderstandings
so that everyone is satisfied at the end. A few tips:
Take time to think through what you want done. Describe it very
clearly and simply in your posting.
Include dimensions (length, height, area).
Specify quality of materials. Quoting X brand, XX quality -- 'or
equivalent/better' is useful.
Include a package of photos and/or drawings if appropriate. Most
reverse auction websites allow you to attach several files. If you
have many files, you can zip them into bundles to upload.
Don't include your contact information, website or other way to
trace down who you are. If you do, two things happen:
You become subject to pressure from suppliers who can contact you
and try to get you to sign up with them before you see the range of
suppliers and bids available;
The website will probably remove your posting because it violates
their policies.
When you have a draft of your posting, go through it as though you
were a supplier trying to bid on it. Ask yourself questions like:
How much material will this project need (i.e. Are the dimensions
sufficient for the supplier to calculate his materials).
Can I use substitute materials? (e.g. Can I substitute an aluminum
gate for the steel one specified?)
How much labor will this project need (i.e. Is the description
clear -- do you illustrate where initial preparatory work might be
needed, e.g. digging foundations or reinforcing a wall, for
example, before attaching a gate to it).
Where is the project? (A zip code can specify the location closely
enough for most estimators, but won't give away your exact
location.)
When does the project have to be completed after bidding is closed?
Is timing a critical factor?
Do the dimensions of the project put it in the realm of the
difficult to complete as specified? Example: If I want that gate to
close a 20 foot wide driveway, making a single panel gate would
probably be very difficult and therefore much more expensive. Do
you clarify where the supplier can modify the approach without
harming the project? e.g. The gate can be in two sections.
What sort of warranty are you expecting on labor and materials? How
about insurance, licensing, bonding -- are your expectations clear?
Are there any specific suppliers you would like to have bid on the
project? If so, include them in the invitation list that is
normally available on the reverse auction website. The website will
generally send out a sufficient number of invitations to allow you
to have a good selection of suppliers to choose from.
Is there any way the supplier can figure out where exactly the
project is located, so he can go there and talk to you? If so,
change that part of the description, or you may have a ton of
suppliers each trying to pressure you into signing a contract with
them.
Taking the time to clearly specify the work required, and reviewing
your project from the supplier's point of view will make for a much
more successful outcome. Remember, when you accept a bid, it is
binding as a contract between you and the supplier, so you want it to
be really clear as to what is required, what it will cost, when it
must be completed etc. Try posting your next project: You may find it
an enjoyable and successful experience.
Patrick Hesselmann is a co-founder of FlatDoor, Inc., and its
website,http://www.FlatDoor.com.
With hundreds of categories and locations, it is the ideal site for
customers to post services wanted, and for suppliers to bid on them.
Post and bit free; a small fee is charged to the successful bidder.
