Minnesota and California affiliates of the Mechanical Contractors Association of America were successful in persuading lawmakers in those states that reverse auctions defeat value-based approaches to construction project procurement.

The MCA of Minnesota and local affiliates of the Associated General Contractors, the American Institute of Architects and the Building Trades testified before a legislative conference committee that low-bid reverse auctions provide little savings, and compromise project safety and quality. State lawmakers had been considering construction program use based on examples provided by Minnesota-based Target Stores.

In California, MCA affiliates and a broad industry coalition also were able to gain construction procurement exemption from Assembly Bill 722 that would permit the state’s Department of General Services to use reverse auctions for other types of goods, services and information technology.