Reverse auction websites allow you to post a description of something you need to have done and receive multiple bids on it. The project can be any service you need, or even any item you want to buy. For the purposes of this article, we'll only deal with reverse auction of services. You can apply similar thinking to posting an item you want to buy through reverse auction.

To post a project, you will need to sign up with a reverse auction site, and describe what you want done. Potential suppliers bid on the project, normally in an open environment where they can see each others' bids. You then select the winning supplier based on what's important to you: supplier rating, price, licensing, insurance, bonding etc. You and the supplier contract for the work through the website, and then execute the project based on that contract: The supplier performs the work, you pay according to terms established during the contracting phase. At the end, you each rate the other on their performance: Was the supplier competent, timely, tidy etc.? He rates you on whether you were clear in your description of the project, paid on time, didn't change the scope (or adjusted the contract if the scope needed to be changed) etc.

The website's function is to act as a marketplace, but not as an arbitrator. So if there were actually a problem between the parties, you would want to sort it out in a normal business or legal process. This thought brings up the question of how to avoid misunderstandings so that everyone is satisfied at the end. A few tips:

• Take time to think through what you want done. Describe it very clearly and simply in your posting.

-- Include dimensions (length, height, area).

-- Specify quality of materials. Quoting X brand, XX quality -- 'or equivalent/better' is useful.

-- Include a package of photos and/or drawings if appropriate. Most reverse auction websites allow you to attach several files. If you have many files, you can zip them into bundles to upload.

• Don't include your contact information, website or other way to trace down who you are. If you do, two things happen:

-- You become subject to pressure from suppliers who can contact you and try to get you to sign up with them before you see the range of suppliers and bids available;

-- The website will probably remove your posting because it violates their policies.

• When you have a draft of your posting, go through it as though you were a supplier trying to bid on it. Ask yourself questions like:

-- How much material will this project need (i.e. Are the dimensions sufficient for the supplier to calculate his materials).

-- Can I use substitute materials? (e.g. Can I substitute an aluminum gate for the steel one specified?)

-- How much labor will this project need (i.e. Is the description clear -- do you illustrate where initial preparatory work might be needed, e.g. digging foundations or reinforcing a wall, for example, before attaching a gate to it).

-- Where is the project? (A zip code can specify the location closely enough for most estimators, but won't give away your exact location.)

-- When does the project have to be completed after bidding is closed? Is timing a critical factor?

-- Do the dimensions of the project put it in the realm of the difficult to complete as specified? Example: If I want that gate to close a 20 foot wide driveway, making a single panel gate would probably be very difficult and therefore much more expensive. Do you clarify where the supplier can modify the approach without harming the project? e.g. The gate can be in two sections.

-- What sort of warranty are you expecting on labor and materials? How about insurance, licensing, bonding -- are your expectations clear?

-- Are there any specific suppliers you would like to have bid on the project? If so, include them in the invitation list that is normally available on the reverse auction website. The website will generally send out a sufficient number of invitations to allow you to have a good selection of suppliers to choose from.

-- Is there any way the supplier can figure out where exactly the project is located, so he can go there and talk to you? If so, change that part of the description, or you may have a ton of suppliers each trying to pressure you into signing a contract with them.

Taking the time to clearly specify the work required, and reviewing your project from the supplier's point of view will make for a much more successful outcome. Remember, when you accept a bid, it is binding as a contract between you and the supplier, so you want it to be really clear as to what is required, what it will cost, when it must be completed etc. Try posting your next project: You may find it an enjoyable and successful experience.