Construction laborers are constantly subjected to irregular work hours, leading to insomnia and poor sleep quality, which impacts cognitive and rational behavior. This negatively influences decision-making capabilities, resulting in accidents on site. This study determined the effect of sleep quality on the cognitive behavior and rational ability of construction laborers. A quantitative research design comprised of a questionnaire survey was conducted for data collection purposes. Respondents comprised a randomly selected sample of construction workers, and a statistical analysis of the results was performed to investigate existing correlations. Data were collected using questionnaires from 575 and 310 respondents in the initial and latter phases, respectively, from five construction companies in Southern India, and analyzed using inferential statistics. Shift work negatively affects both the early and late phases of rational abilities. A negative correlation was observed between age and disturbed rationality in the late phase, despite not being observed in the early phase. Gender, rational ability, age, shift work, sleep quality, and cognitive behavior were not correlated in either the early or late phases. Furthermore, age, shift work, and sleep quality were not correlated with cognitive behavior. Rather, sleep quality and shift schedules were associated with rational ability and cognitive behavior impairment. There was a transient relationship between insufficient sleep and the ability to make rational decisions. This study contributes to the current discourse regarding the improvement of the sleep health of construction workers to enhance their well-being and productivity.