An Evaluation of the Cost Effectiveness of Direct Labour System on Housing Project Execution in Lagos State, Nigeria
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Abstract
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At the peak of economic recession in 1985. the Federal Government of Nigeria started to
advocate for a revisit of the direct labour system typified of project execution during the
colonial era through the 1960s. This method was completely abandoned for traditional
contract method at the instance of oil boom in early 1970s. At the dawn of recession. the
traditional contract method was faulted as being replete with cost overrun and hence the
need to go back to the direct labour system to salvage the situation. Lagos State with an
estimated population of about 10 million people and insatiable need for housing and social
infrastructures launched large scale direct labour construction projects ~n 1996. Since then
the Lagos State Direct Labour Agency (LSDLA) has executed 2.772 housing units spread
over 21 housing estates in Lagos metropoly. The object of this paper was to determine
whether the direct labour system was significantly more cost effective than the traditional
contract method on these housing units. Cost comparison between the two procurement
methods showed a saving of 26.86% when direct labour was used in preference to the
traditional contract method. Chi-square analysis also show~d that there was significant
difference in cost between these two procurement methods.
Keywords
HD Industries. Land use. Labor, TH Building construction