DIRECT LABOUR UNITS AS PUBLIC ENTERPRISES: A Model for Improved Performance in the Construction Industry

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Date
1989-09
Authors
MACHINA, MUSA ADAMU
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Abstract
The improvement of the performance of any set of organizations invariably entails, among others: (i) Investigation of the problems militating against their performance, and (ii) Offering appropriate solutions. Investigation has indicated that most problems in Direct Labour Organizations revolve around the problem of lack of 'autonomy' to operate effectively. Public enterprises, on the other hand, are conceived and established as organisations that should exist outside the civil service so that they could operate with greater degree of freedom. This and other concepts behind the establishment of public enterprises are, therefore, matched with Direct Labour implementation. Investigation conducted has confirmed the worthiness of transforming direct labour organizations into public enterprises. Based on research findings, it is proposed that direct labour companies are to be established from the existing Direct Labour Organizations In each State. These companies are expected to engage in the execution of both public and private projects. Since State Governments may not be buoyant enough (in this austere period) to effectively finance Direct Labour companies, it is proposed that the companies be allowed and supported to participate in the Nigerian Capital Market, where they could borrow large sums of money to meet their long-term financial commitments. vi Apart from financing construction projects, the State governments are expected to be disengaged from all financial responsibilities to Direct Labour companies. The companies on the other hand, should be allowed to charge a reasonable 'overhead' cost on every project undertaken. This will help them to meet both short- and long-term financial obligations. The Nigerian Capital Market could, however, be partly relieved of its functions to Direct Lab-our companies (by the state governments) after (about) three years of inception of the companies. This is to allow the government to enjoy portions of the interest to be paid to the Capital Market. It is also recommended that, shares be sold to the public at a later stage, so as to involve them in the affairs of the companies as against their being left 'on the sidelines'.
Description
A THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A DEGREE OF MASTERS OF SCIENCE IN. CONSTRUCTION MANAGEMENT, IN THE DEPARTMENT OF BUILDING, FACULTY OF ENVIRONMENTAL DESIGN, AHMADU BELLO UNIVERSITY, ZARIA. AUGUST, 1989
Keywords
DIRECT ,, LABOUR,, UNITS,, PUBLIC,, ENTERPRISES,, Model,, Improved,, Performance,, Construction,, Industry
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