Critical Factors Affecting Key Performance Indicators In Housing Construction: An RII Analysis And Improvement Measures For Nepal

Abstract

This study identifies critical factors affecting Key Performance Indicators (KPIs) in housing and apartment construction projects in Kathmandu Valley and formulates practical improvement measures. A mixed-methods design was adopted. Primary data were collected through structured questionnaire surveys distributed to 90 purposively selected stakeholders (clients, consultants, contractors) across 15 active housing projects. A total of 54 valid responses (60% response rate) were analyzed using Relative Importance Index (RII). Key Informant Interviews with five industry experts (≥25 years' experience) provided qualitative insights for improvement strategies. RII analysis revealed: cash flow (0.86) and resource cost (0.81) most affect Cost KPI; quality of materials/workmanship (0.87) most affects Quality KPI; payment delays (0.84) most affect Time KPI; leadership skills (0.85) most affect Client Satisfaction; use of PPE (0.83) most affects Health & Safety; work sequencing (0.83) most affects Productivity. KII highlighted land acquisition delays, skilled labor shortages, payment bottlenecks, and weak regulatory enforcement as persistent challenges. Improvement measures include: performance-based contracting, payment guarantee mechanisms, on-site CTEVT-certified training, tax incentives for green building and gender inclusion, and building code amendments for H&S and environmental standards. This study provides the first systematic RII-based identification of KPI-affecting factors for Nepal's housing sector.