With the advancements in Information and Communication Technologies (ICT), the use of online bidding is steadily increasing in the construction industry. Online bidding allows contractors to prepare and submit project bids electronically in encrypted format via a secure network, thereby resulting in substantial time and cost savings. This paper will first discuss the concept of online bidding with its advantages over the traditional paper-based bidding. Then two types of online bidding, namely traditional online bidding and reserve auction bidding, will be discussed with their pros and cons. At the end, findings of a research project which investigated the current status and future prospects of online bidding in the U.S. construction industry will be presented.