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)