Comments on: IT Consulting Firm Sued for Certifying CardSystems as CISP Compliant http://blog.subjunctive.com/2009/05/27/it-consulting-firm-sued-for-certifying-cardsystems-as-cisp-compliant/ Notes on Security, Privacy, and the Law Sun, 28 Feb 2010 18:36:35 +0000 hourly 1 http://wordpress.com/ By: Michael Janke http://blog.subjunctive.com/2009/05/27/it-consulting-firm-sued-for-certifying-cardsystems-as-cisp-compliant/#comment-124 Michael Janke Thu, 28 May 2009 01:11:28 +0000 http://blog.subjunctive.com/?p=479#comment-124 I'll try to compare this to the common pre-purchase home inspections. In that case, both the buyers and sellers agents are highly motivated to close the sale. No deal = no commission. A pre-purchase inspection by a professional inspector can only break a deal that is ready to close. The agents therefor have no incentive to reccomend an inspector who has a reputation for doing a thorough inspection and finding lots of this wrong with the house. If the inspector nit-picks, neither agent will recommend that inspector again, and the inspector eventually has no work. So the inspector has to find enough things wrong to validate the necessity for the inspection, but not so much wrong that he/she breaks the deal and risks not getting any more business. In this case, the inspectors have a big thick contract that makes sure that if they miss something, they don't have any liability, so the are safe from that side of the equation. I know a home inspector who quit the business for that reason. The better job he did, the fewer referrals he got. I’ll try to compare this to the common pre-purchase home inspections. In that case, both the buyers and sellers agents are highly motivated to close the sale. No deal = no commission.

A pre-purchase inspection by a professional inspector can only break a deal that is ready to close. The agents therefor have no incentive to reccomend an inspector who has a reputation for doing a thorough inspection and finding lots of this wrong with the house. If the inspector nit-picks, neither agent will recommend that inspector again, and the inspector eventually has no work.

So the inspector has to find enough things wrong to validate the necessity for the inspection, but not so much wrong that he/she breaks the deal and risks not getting any more business. In this case, the inspectors have a big thick contract that makes sure that if they miss something, they don’t have any liability, so the are safe from that side of the equation.

I know a home inspector who quit the business for that reason. The better job he did, the fewer referrals he got.

]]>