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Advances in Social Sciences Research Journal – Vol. 8, No. 5
Publication Date: May 25, 2021
DOI:10.14738/assrj.85.10201.
Hackman, J. K., Ayarkwa, J., Osei-Asibey, D., Adjei-Kumi, T., Acheampong, A., & Nkrumah, P. A. (2021). Direct Labour as A
Procurement Route for Infrastructure Delivery within Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana.
Advances in Social Sciences Research Journal, 8(5). 293-312.
Services for Science and Education – United Kingdom
Direct Labour as A Procurement Route for Infrastructure Delivery
within Metropolitan, Municipal and District Assemblies (MMDAs)
in Ghana
Joe Kingsley Hackman
Department of Construction Technology and Management
Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana
Joshua Ayarkwa
Department of Construction Technology and Management
Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana
Dickson Osei-Asibey
Department of Construction Technology and Management
Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana
Theophilus Adjei-Kumi
Department of Construction Technology and Management
Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana
Alex Acheampong
Department of Construction Technology and Management
Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana
Prince Asher Nkrumah
Department of Construction Technology and Management
Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana
ABSTRACT
Direct Labour procurement method has been identified as one of several
procurement route alternatives used for the delivery of construction projects. This
study assessed Direct Labour as a procurement route for the delivery of
infrastructure within the Metropolitan, Municipal and District Assemblies (MMDAs)
in Ghana. A qualitative research approach was employed using in-depth interviews
conducted with ten (10) professionals who were purposively sampled from the
Works Departments of the Kumasi, Accra and Tema Metropolitan Assemblies in
Ghana. The qualitative data was then analysed using content analysis. Direct Labour
has been revealed by this study as an effective procurement method which can be
employed by the MMDAs in Ghana for the delivery of public infrastructure. The
findings of the study also indicate that, the benefits of the Direct Labour
procurement route include the elimination of profits to contractors and its
idealness for the execution of emergency works. However, Direct Labour as a form
of procurement is not used on new MMDA construction projects because the Public
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Advances in Social Sciences Research Journal (ASSRJ) Vol. 8, Issue 5, May-2021
Services for Science and Education – United Kingdom
Procurement Act 2003 (Act 663) of Ghana as Amended in 2016, does not clearly
stipulate its usage on new projects. Direct Labour procurement is used within the
MMDAs mainly for maintenance works on public projects. The findings of the study
would prove useful for policy re-evaluation, especially regarding the reformation of
the Public Procurement Act, 2003 (Act 663) as Amended in 2016 to include Direct
Labour as one of the procurement routes for the delivery of infrastructure. This
would enable the MMDAs to adopt it not only for maintenance works, but also for
the execution of new infrastructural projects in order to benefit from its numerous
advantages.
Keywords: Direct Labour, procurement route, MMDAs, infrastructure delivery
INTRODUCTION
Direct Labour procurement method is amongst several procurement routes used for the
delivery of construction projects (Adegoke, 2011). It is a method employed by clients or
developers to plan and organize the project delivery process, prepare designs, plan and procure
resources, and construct a project using “in-house” staff (Idoro, 2012). In view of this, the Direct
labour procurement method is often regarded as “in-house” because the staff of the client, as
different from contractor’s staff, carry out the project delivery processes and activities. Idoro
(2007) asserts that, it is mainly used for governmental projects. Ojo (2009) describes Direct
Labour procurement method as a system where the client engages tradesmen directly to
execute projects by either using in-house personnel to design and construct or directly
employing operatives to construct. By this method, the services of a contractor are dispensed
with, and this elimination makes the Direct Labour route distinct from other procurement
methods. Adenuga (2013) also defined the Direct Labour procurement method as “where the
client uses his or her in-house human resources to carry out a construction project”. Over the
years, it has been found that procurement systems such as Direct Labour Method, Design and
Build, Construction Management, Management Contracting, and Project Management perform
better than the traditional method in terms of time and cost overruns due to the integration of
design and construction (Aghimien et al., 2017; Adenuga, 2013). Traditional methods lead to
long delays in project conception and delivery thus leading to high project cost (Aghimien et al.,
2017).
The Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana, over the years, have
provided infrastructural projects within their jurisdictions. As government entities, they are
bound by laws so as to streamline their activities. In procuring works, goods and services, they
are at liberty to choose any of the procurement routes: Competitive Tendering, Two-Stage
Tendering, Restricted Tendering, Single Sourcing and Request for Quotations (Public
Procurement, 2003 (Act 663) as amended by the Public Procurement Act, 2016 (Act 914)).
Direct Labour as a procurement route comes with a lot of benefits. According to Ojo (2009), the
Direct Labour method is cost-effective, simpler, prudent, devoid of corruption and generates
employment opportunities for the populace. Adenuga (2013) indicated that Direct Labour
projects, in comparison with projects procured via the conventional methods, result in cost
savings. This is because, Direct Labour enhances the control of services, adjustment to
workload fluctuation and security to the work done (Aghimien et al., 2017). Furthermore,
project delays causing time overruns which are associated with traditional methods are
minimized. Notwithstanding the benefits of the Direct Labour method, Lawal (2007) indicated
that work operatives may occasionally exhibit shoddy work attitudes and work at snail speed,
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295
Hackman, J. K., Ayarkwa, J., Osei-Asibey, D., Adjei-Kumi, T., Acheampong, A., & Nkrumah, P. A. (2021). Direct Labour as A Procurement Route for
Infrastructure Delivery within Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana. Advances in Social Sciences Research Journal,
8(5). 293-312.
URL: http://dx.doi.org/10.14738/assrj.85.10201
since the completion of the work at hand is necessary but not a compulsory condition for the
payment of their wages. Also, there may be inadequate incentives for the workers involved in
Direct Labour unlike the workers of established construction firms (Adenuga, 2013). These
consequences may adversely affect the quality of the project. The major concern about Direct
Labour performance at the MMDAs is “effective” application and presentation of the
procurement route. The MMDAs are also limited by legislation in the usage of the Direct Labour
procurement method for infrastructure delivery, since Act 663 as Amended by Act 914 does
not include it as one of the procurement methods. For this reason, this study set out to assess
Direct Labour as a procurement route for the delivery of infrastructure within the MMDAs.
LITERATURE REVIEW
Structure of MMDAs in Ghana
The Metropolitan, Municipal and District Assemblies (MMDAs) form the structure of the local
governance system in Ghana (Hackman et al 2021). Ghana’s local governance system dates back
to the colonial era when the system of indirect rule operated (Honyenuga and Wutoh, 2019).
According to Stiftung (2010), the 1992 Constitution of Ghana’s provisions in Article 240 (1) and
(2) further deepened the reforms on local governance and decentralization. It provides that,
the system of local government and administration shall be decentralized, and the functions,
powers and responsibilities and resources shall be transferred from central government to
local government units for coordination. The Constitution also made provision encouraging
larger grassroots participation in governance and accountability process from the top
hierarchy to the bottom and vice versa. To operationalize the above provisions, the Local
Governance Act, (2016) Act 936 and the Local Government Establishment Instrument (1994)
L.I 1589, have been promulgated and enacted with the aim of promoting and encouraging
popular participation in decision-making, and decentralized governance systems and processes
in order to ensure efficient and effective operation of the entire government machinery
(Hackman et al. 2021; Honyenuga and Wutoh, 2019). There are other legislative instruments
e.g., Local Government (Sub-Metropolitan, District Councils) L.I. 2223 which equally encourage
popular participation. Figure 1 shows the structure of local governance in Ghana.