Ranking Key Performance Indicators and their Affecting Factors in Housing and Apartment Construction in Kathmandu Valley, Nepal

Abstract

This study assesses the ranking of key performance indicators (KPIs) in housing and apartment construction projects in Kathmandu Valley, identifies factors most affecting each KPI, and formulates improvement measures. A mixed-methods design was used. Data were collected from 54 purposively selected stakeholders (clients, consultants, contractors) across 15 active projects. Garrett’s ranking technique, the relative importance index (RII), Spearman’s rank correlation, and key informant interviews (KII) were employed. Quality ranked highest (Garrett score 3502), followed by cost (3442), client satisfaction (3436), time (3356), health and safety (3292), and community satisfaction (3281). Innovation and learning, people, and gender/social inclusion ranked lowest. RII showed cash flow (0.86) most affects cost; material/workmanship quality (0.87) affects quality; payment delays (0.84) affect time; leadership skills (0.85) affect client satisfaction. Stakeholder agreement was strong (Spearman’s ρ = 0.832–0.955). KII identified land disputes, labor shortages, and payment delays as key challenges. Recommendations include mandatory third-party material testing, contractual payment penalties, leadership training, tax incentives for green/social compliance, and digital tracking tools.