A company's actual profit can differ from the estimated profit on a bid due to a variety of factors. These factors include inaccurate costs in the estimates. Unforseen changes in the scope of the project. The fluctuation of material prices and labor issues. Unexpected delays and changes in market conditions or poor risk management. This could lead to higher actual costs than were initially submitted. Other bids could also be lower than the other company's bid. This may lead to a lower profit margin than was originally anticipated in the estimate. The actual profit margin can also increase if the cost of the above items comes lower than was estimated, in this case this would be a windfall profit for the company