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Yes, but those are actual codes. In fact, that's why they're codes. Contractors won't do more than they're legally required to (nor should they be expected to),
by lmkg 13y ago
Yes, but those are actual codes. In fact, that's why they're codes. Contractors won't do more than they're legally required to (nor should they be expected to), so safety features were made legal requirements.
Relying on the honesty or competency of your contractors go above & beyond their requirements is an inefficient and unsustainable solution in a free market. This is a clear case of Moral Hazard: In the same way that bad money drives out good, corner-cutting organizations out-compete honest ones.
- benmanns 13y agoWhat about reputation? I regularly do more than the legal minimum for my clients and there are companies who do the same for me. Meeting the legal minimums only makes sense for commodities, e.g. this salt is 99.5% pure. This software is 99.5% "secure"? This software is 99.5% "complete"?
- pessimizer 13y agoI don't think that most RFPs require or make many allowances for "reputation."
- eigenvector 13y agoTrue, but quantifiable aspects of reputation (like having successfully completed similar projects in the past) can be part of a pre-bid qualification process. This is common for large or complex projects.
- sanderjd 13y agoIt seems to me that reputation works better in the free market than the government "market". I don't know why that is, but I suspect it has to do with the same rules for the bidding process that are meant to decrease corruption, but also tend to entrench contractors.