Severe competition in today’s business demands every organization to adapt and create newstrategies to compete. Among those strategies, cost reduction is one popular strategy that is usuallyused in the competition. Normally, several activities must be performed to complete a project in acertain timeframe. These activities also generate costs to the project by consuming materials, usinglabour, and utilizing equipments and utilities. However, some activities do not create value to theproject which is referred as non-value adding activities. A non-value adding activity relates to theactivity that generates extra costs to the project but no extra value is generated to the total projectvalues. Examples of non-value adding activities in a construction project include material handling,inspection, storage, rework, etc. Since a construction project is a fixed position layout, hence,materials, resources, equipments must be transported to the working area to perform an activity.However, the transport activity contributes extra costs to project but it does not generate much valueto the project. Thus, these non-value activities must be effectively managed. Generally, non-valueadding activities can be managed by reducing non-value adding activities or cutting off the cost ofnon-value adding activities. For instance, an activity may be redesigned to use less transportationactivity or more effective material handling equipments are employed. Finally, the methodology isimplemented and tested in an actual building construction project in Thailand. Objectives of thisresearch are (i) to determine non-value adding activities in the construction project, (ii) to establisheffective methods to remove non-value adding activities from the project, and (iii) to successfullyimplement these methods to the actual construction project.