Procurement Auction Price Competition Risks
Definition
Auction processes emphasize price competition, risking quality compromises and overruns if non-price criteria are not properly assessed.
Key Findings
- Financial Impact: 5-15% project cost overrun from rushed low bids
- Frequency: Per auction-based procurement
- Root Cause: Primary competition on price without balanced evaluation
Why This Matters
The Pitch: Interior design procurement in Australia 🇦🇺 incurs 5-15% overruns from price-only auctions. Automation of PO management prevents underbidding losses.
Affected Stakeholders
Procurement Teams, Interior Suppliers
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Vendor Selection Cost Overruns
Bad Vendor Decisions in D&C Procurement
Budget Tracking Cost Overruns
Delayed Invoicing from Variance Errors
Poor Supplier Decisions from Visibility Gaps
Delayed Client Payments from Milestone Billing Errors
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