I'm a contractor, working for a consulting firm, and we say no all the time. Sometimes it's not a hard no, but more of a gentle nudge in a better direction. But we often advise our clients away from certain requests because that's what we're paid for. We're the experts and they value our expertise, that's why they hired us.
I know for a fact that what you describe exists, because about a quarter of our jobs involve cleaning up after someone like that, but I wouldn't say it's a feature of contractors in general but of cheap contractors.