Tolerance management is crucial in construction to ensure components fit together correctly, meet functional and aesthetic requirements, and avoid costly rework. Despite its importance, the construction industry often lacks a comprehensive method to effectively manage tolerances, leading to defects, increased costs, and project delays. This study aims to develop a systematic approach to tolerance management, addressing these prevalent issues. The research adopts a case study approach, focusing on a multi-storey commercial building project. Data collection involved 19 in-depth interviews with key stakeholders, comprehensive reviews of project documents, and regular site observations. These methods provided a holistic understanding of current tolerance management practices and informed the development of the Tolerance Management System (TMS). The TMS was developed based on an extensive literature review, root cause analysis, and empirical studies, effectively addressing the root causes of tolerance problems. Findings demonstrated that the TMS significantly reduced tolerance-related defects, improved construction quality, and minimized remedial costs. The case study highlighted the importance of early identification of tolerance requirements, clear communication, and continuous monitoring throughout the construction process. This study contributes to knowledge in engineering management by providing new insights into the drawbacks of existing tolerance management guidelines and offers a practical solution to improve tolerance management in construction, laying the foundation for more effective solutions in terms of process and digitalization.