What is Bid Ceiling?
The maximum price a buyer will accept during a forward auction.
Definition
A bid ceiling is the maximum price a buyer will accept in a reverse auction. Bids above it are rejected by the platform, which keeps the event within a commercially sensible band and prevents an opening round of speculative high offers.
How it works in practice
A buyer sets the ceiling slightly below the current contracted rate. Any supplier quoting above the incumbent price simply cannot enter a bid, so the event starts from a position that already improves on the status quo.
Why it matters
The ceiling is a screening device, not a target. Set it too tight and qualified suppliers cannot participate at all; set it at the incumbent price and the event guarantees at least parity.
Run this on procurEngine.
Book a demo scoped to the categories and event formats you actually run.