Since a building construction project is a fixed positionlayout, human resources, raw materials, equipments e.g.ready-mixed concrete, crane, workers, etc. are transportedto the construction site. Consequently, operations can beconducted regarding to available labors, materials andequipments. However, construction operations could notbe performed due to lack of required resources orequipments. For example, the transportation of readymixedconcrete delays or the material-handling equipmentbreaks. Hence, the construction manager must ensure thatall required resources and equipments are available whenneeded.Several material-handling equipments are leased fromoutside suppliers on day-to-day basis. A constructionmanager wants to measure the performance and utilizationof these equipments. In order to enhance the performanceof construction operations, additional equipments may berequired. However, extra costs may be incurred fromthese additional equipments. Hence, the constructionmanager must select the best alternative based on the costeffectiveness approach.In this research, the simulation software, AweSim®, isused to model the existing construction operations tomeasure their performance. Also, different alternativescan be tested in AweSim® to identify their outcomes.Finally, simulation is performed in the actual buildingconstruction project to evaluate the existing operationsperformance and determine the best improvementalternative based on the cost effectiveness approach.