eBay-style tendering process is "insane", says chief executive

The growing trend of eBay-style tendering for construction contracts is "insane", according to an industry representative.

So-called 'eBay tendering' is where firms submit bids online, compare them with bids submitted by competitors and then lower their bid.

Paul Jessop, chief executive of the Federation of Plastering and Drywall Contractors, told BAD News: "It's an insane way to get a contract to be honest, completely insane. To say that you're offering a contract where 90% is based on price and 10% is based on safety is a crazy way to work. I think it's dangerous in relation to quality and health and safety. It encourages people to put in silly prices, you can't get a multi-million pound building project for £500,000. Sense needs to take hold."

His comments have come after a number of organisations, including housing contractor Keepmoat, revealed they would be using this method of tendering more in the future, which prompted anger from some industry representatives. However, Keepmoat told Building.co.uk that it believes its procurement system is "best practice".

To read more on this story go to the Building.co.uk website.

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