Comparative Analysis of Direct Labour and Contracting System of Project Procurement

Abstract

This study examines the performance of two project procurement methods commonly used in project construction, the direct labour and contracting system. Using cost, time and quality as assessment criteria, the work seek to determine possible advantage of one method over the other. Quasi-experimental design and questionnaire were combined to carry this study. Respondents was mainly officers and building contractors, key players in project procurement. Results obtained in this work showed that there was no significant difference between the two methods in terms of cost overrun, though overall cost was higher for the direct labour method. It also revealed a significant difference between time overrun for the two methods as direct method took longer time. The study concluded by emphasising the need for training, openness and empowerment. It also recommended the need for all establishments to adopt participatory project management through direct labour.

Key Words: Direct Labour, Contract, Procurement, Time, Cost, Cost overrun, Time overrun

DOI: 10.7176/CER/11-8-07

Publication date:September 30^th 2019