This may come as a surprise to you, but Contractors do occasionally under-estimate the cost to construct a project. Sometimes accidentally and sometimes deliberately. The problem is you may not discover this until it’s too late that there were never adequate funds to complete the project. Your Construction Funds Manager is your best source for keeping surprises to a minimum.
On privately owned projects, owners typically determine who will design and construct their projects by using a couple of methods. Some negotiate with a contractor, or a small group of contractors, while others solicit competitive bids from multiple bidders and award the project to the best (or lowest) bidder. More often, in a competitive bid environment, the successful bidder is simply the Contractor that made the most mistakes or is willing to perform the work for the least amount of profit.