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This would work if the lowest bidder failed to perform, they would have to pay back the second lowest bidder. For example, if they bid $1, but the second lowest
by mikikian 11y ago
This would work if the lowest bidder failed to perform, they would have to pay back the second lowest bidder. For example, if they bid $1, but the second lowest bid was $1000, they would have to pay back $1000 for not performing. They should probably also establish a floor to eliminate this $1 gaming mechanics.
- cortesoft 11y agoWhat if the lowest bidder is nowhere to be found?
- ceejayoz 11y agoThey could require a deposit to bid, I suppose.
- efsavage 11y agoFor larger projects, the contractor is required to be bonded to cover things like this.
- plonh 11y agoIs $1 a large project?
- dragonwriter 11y agoSince the amount at risk is the amount of the bid prior to yours, that should determine both the amount of any bond requirements and, if there is a sharp cutoff, the cutoff for the requirement for a bond.
- cowsandmilk 11y agothe point of this process was procurement in increments less than $3,500 to avoid many regulations.
- Omnipresent 11y agoIf lowest bidder is nowhere to be found, then the next lowest bidder gets the work.
- lisivka 11y agoYou chose way of punishment. It is better to split work into 3 parts: 2/3, 2/9, and 1/9, and assign 2/3 to winner, 2/9 to second winner, and 1/9 to third winner. In this case whole ecosystem will grow around these auctions, which will produce into better market and lower prices automagically.
- mdpopescu 11y agoSo you get two friends and they bid $2 and $1.