Yes and that is broadly the safe option. One can build on geological stable high grounds. They are rather and more difficult to build on. We know what happens when we don't.
> Sure, politicians and contractors could do better
It's not mistake of the "oops a typo" variety.
They are knowingly making a freakton of money by endangering the people who ought to know better. I agree sometimes the poor might not have viable alternatives that they can fund with their own bank balance but it seems this is where the governments should step in to fund alternatives. But why do that when there is easy money to be made.