For example, it was to the inside contractor's benefit to allow machinery to deteriorate toward the end of his contract since maintenance was costly and he might not reap the long-term benefit if he didn't get another contract. The system was eventually replaced with the factory system, in which everyone was an employee of the manufacturer directly.
Consider an instance where it benefited the inside contractor to allow machinery to degrade towards the conclusion of his agreement due to high maintenance costs and the possibility that he wouldn't realize long-term advantages unless he obtained another contract. Ultimately, this system was replaced with a factory model in which all employees were directly employed by the manufacturer.