This is a horror story I found in a major hotel in downtown Mexico City! I often wonder when the fire will start in that 7th floor equipment room!
These terminations are really loose now because of over torque, and the heat generated by the loads is clearly evident because the wires were melting!!
How does the insurance industry, or in house safety people see this?
If you look carefully at the picture above you'll see where the terminals are tightened all of the way into the lug --- showing copper around the circle. That's what the problem was here, and the "over torquing" led to this situation.