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Assessment of Project Performance and Moderating Effect of Stakeholder Engagement in Health Building Projects, Far-Western Province, Nepal.

Assessment of Project Performance and Moderating Effect of Stakeholder Engagement in Health Building Projects, Far-Western Province, Nepal.

Student: Man Bahadur Pariyar

Supervisor: Dr. Dinesh Sukamani

Submitted Date: September, 2026

Abstract

Key Performance Indicators (KPIs) are used to measure the project performance in construction projects. The primary objective taken in this study were to assess and rank the critical Key Performance Indicators (KPIs), to explore the moderating effect of stakeholder engagement, and to determine the practical improvement strategies regarding the health infrastructure projects constructed in Far- Western Province, Nepal. It is a Confirmatory Factor Analysis (CFA) test.Date collected via questionnaire and Key Informant Interviews (KII) with client and contractor personal were analyzed across nine KPIs: communication & collaboration, cost, environmental, finance, productivity, quality, safety, schedule, and stakeholder satisfaction. Confirmatory Factor Analysis was done using the Partial Least Square Test – Structural Equation Modelling (PLS-SEM). KII strategies were analyzed using the word cloud and Venn-Diagrams. The structural model showed Coefficient of Determination (R²) to be 0.56 and it indicates that the model explains 56 % of the variation in study data. Eight out of nine direct hypotheses were statistically significant, establishing Schedule (β = 0.329, p=0.000) as the top priority driver of project success, followed by Productivity (β = 0.247, p=0.001) in second rank, and Safety (β = 0.193, p=0.000) in third rank, whereas Communication & Collaboration was statistically insignificant (β = 0.110, p=0.065). In case of moderating effect, stakeholder engagement has significant moderating effect and strengthen the relationships between project success and two KPIs; namely Environment (β = 0.152, p=0.004) and Finance (β = 0.085, p=0.049). To optimize the project outcomes, it is recommended that clients and consultant perform through resource availability assessment during the design phase to allocate realistic and achievable schedule before tendering, incorporate motivational practices within organizations, strictly enforce site safety under the Labor Act, 2017 and ILO standards, and implement practical Stakeholder Engagement Plans to resolve site- level operational barriers. These results of the study can serve as guidelines in the field of construction management toward improving construction project performance.

Keywords

Health Infrastructure Projects, Key Performance Indicators (KPIs), Moderating Effect, Partial Least Square Structural Equation Modelling (PLS-SEM), Project Success, Stakeholder Engagement (SE)