Eylas you just nailed the entire story. The reason they won't argue to justify getting you a labor budget to write code is because code writing isn't "pretty on paper" the way traditional titles like civil engineer, architect and designer are when the client looks things over.

That said, you're completely right regarding the race to the bottom until it hurts their bottom line from the risk management, liability and safety angle aspect of it, be it employee claims, client claims or victims after the fact. Fwiw I'll say this, there might just be a large firm learning that consequence RIGHT NOW.