Labour contracting society (LCS) in public procurement: a case study in IWRMU at Local Government Engineering Department (LGED)

Abstract

With the goal of fixing the purpose of providing employment for impoverished local people, the government introduced the ‘Labour Contracting Society’ (LCS), comprising a group of men and/or women of poor local people to perform work for a government agency or project under 76(3) of PPR 2008. Before PPR in 2008, LCS is a participatory approach for the implementation of construction and maintenance of works. Keeping objective in reducing poverty without any tender competition, this article has been used as direct procurement. This report is about the operation and maintenance work conducted through LCS, its challenges, and the way forward under IWRMU and LGED. The study was conducted through a literature review, a questionnaire survey, and KII interviews. The findings from the literature reviews, questionnaire survey, and KII interview findings are analyzed. The findings and analysis form the basis of recommendations for future measures. It is clear from the analysis of various pros and cons and opinions received that the sustainable approach, a mixed LCS approach with proactive monitoring, will be able to accomplish the goals of work implementation, including poverty reduction. Finally, it needs to be backed up for additional study.