The construction industry is known for its labor-intensive nature, and companies must maintain high labor management standards to complete projects within time and budget. However, challenges related to labor management are common in the industry and can negatively impact project delivery times and costs. In Nepal, housing developers face the issue of not delivering projects on time, leading to increased costs. This study explores the current labor management practices, challenges, and remedial measures in the construction industry of Nepal, with a focus on housing developers in the Kathmandu Valley. The study collected data from 17 building projects using interviews and questionnaires and analyzed the data using the Relative Importance Index (RII) and Spearman's rank correlation coefficient. The findings indicate that labor management issues, including poor communication, planning, inadequate wages, occupational health and safety, labor policy, and unfair treatment, are major challenges faced by housing developers in Nepal. The study recommends implementing better employee staffing, performance evaluation, work environment, training, and compensation management to address these challenges. The results of this study offer insight into current labor management practices and potential solutions for housing developers in Nepal, contributing to the overall success of construction projects. Proper labor management can result in substantial savings in time and cost for construction projects, making this study relevant and valuable to researchers and practitioners in the construction industry. The findings of this research could have important implications for private housing developers in Nepal, as well as for the broader housing sector in developing countries facing similar challenges.