Reverse Bidding Definition
Reverse bidding is the process of inviting bids for a project in which the contract is awarded to the bidder who offers the lowest price. In traditional bidding, bidders compete against each other to offer the lowest price for a project. In contrast, with reverse bidding, bidders compete against each other to offer the highest price for a project.
The main advantage of reverse bidding is that it allows buyers to find the best possible price for a project. In addition, reverse bidding can help buyers save time and money by avoiding the need to negotiate with multiple suppliers.
There are some disadvantages of reverse bidding as well. For example, if there are only a few bidders, the buyer may not be able to get a good deal. In addition, reverse bidding can create an incentive for suppliers to inflate their prices.
