One of the reasons for the low profit margins of construction companies is the competitive bidding process for awarding jobs. Traditionally, in construction tenders, work is awarded to the lowest bidder. When market competition is tough and economic conditions are tight, construction companies must deliberately quote very low bids in order to simply get the job for themselves. This bidding system reduces the profit margins that companies could make. Some companies that want to venture into a new market sector also intentionally offer low bids to pave the way for future opportunities, even at the cost of minor losses. Another factor that affects the overall bid, and therefore the general contractor's profit margins, are markups on subcontractors' material, labor and equipment expenses. Subcontractors also need to think about their profits, which come from the same bid amount given to the owner. The only way to achieve higher profits is to attempt high-risk jobs where competition is minimal and earnings are higher. Even so, construction work is very unpredictable, and bad weather, unforeseen conditions, design errors, or safety issues can easily increase project costs and cause schedule delays, resulting in damage -interests which ultimately result from unforeseen events and profits of the entrepreneur.