Interesting discussion.

Let's look at it from a third perspective. In Federal jobs the Contracting Officer (CO), COR (representative) and Inspector in finding this out will withhold payments until the situation of pay is corrected along with withholding final payment until the job is completed. Another way to state this is the contractor who does this will lose if discovered. Not a good way of doing business on this end either.

Personally I like the reward method. Give regular bonuses to the employees based on correct installations completed. You want to keep the best, so reward the best (this coming from the government who rewards to the lowest bidder, but are trying to get away from that and are now struggling to look at value also).

Shane