When a company is tendering for a project there are three things that must be taken as a given :
1) They must know the business/job that they are tendering for and know/understand the terms of reference.
2) They must quote for the project taking into consideration all their costs to deliver the project correctly and on time, and
3) They need to build in a margin that will represent their profit for delivering the project.
If they do not know any of the above then they would be pissing into the wind and could be regarded as being incompetent .
On the other hand if they know all of the above, as they should , but to choose to underquote just to get the job then their judgement would be questionable.
Predictions/budgets etc are just that but by and large they can be accurate if they have the knowledge, efficiency, manage costs effectively and build in a reasonable margin.
Over & out.
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