One of the reasons for the low profit margins for construction companies is the competitive bidding process for awarding work. Traditionally in construction contracting, work is awarded to the highest bidder. When competition in the market is tough and economic conditions are tough, construction companies have to bid very low to win the job. This low bidding system eats into the profit margins that companies could make. Some companies that want to venture into a new market sector also intentionally bid low to make room for future opportunities, even at the cost of minor losses. Another factor that affects the overall bid and, consequently, the general contractor's profit margins are subcontractors' markups for materials, labor and equipment. Subcontractors also have to think about their profits, which come from the same amount offered to the owner. The only way to get higher profits is to attempt high-risk jobs where competition is minimal and profit is higher. Even in these cases construction work is highly unpredictable and adverse weather, unexpected conditions, design errors or safety issues can easily increase project costs and cause schedule delays resulting in liquidated damages that ultimately result from the unexpected and contractor's profit