<p>The rapid growth of construction waste combined with limited land availability, strict regulations for waste disposal, and associated health and environmental risks, has prompted the construction sector to focus on reducing waste generated due to construction activities. Zero waste is a concept closely aligned with the circular economy (CE), which aims to eliminate the generation of waste. However, achieving zero waste requires additional techniques and efforts beyond current on-site waste management practices. The lack of methods to assess a site’s progress towards zero waste by incorporating CE principles has motivated this research. The objective of this paper is to present the development of an assessment tool that can be used to assess the progress of a construction site towards zero waste. The research used a mixed methods approach combining a comprehensive literature review, semi-structured interviews, and case studies, to develop and validate the tool. The validation through case studies revealed that embedding CE principles of reduce, reuse, repurpose, recycle, and recover helps site managers take active steps towards achieving a zero-waste target. The developed tool aids construction site managers in making material-level disposal decisions and implementing managerial-level initiatives to drive zero-waste target.</p>