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