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Resource leveling aims at minimizing the resource usage fluctuations, which is accomplished by moving noncritical activities within their float. The project duration is fixed and is not affected by the leveling. Most of resource leveling techniques assumes that activities cannot be split. Although this assumption is valid for most construction activities, there are several activities that can be split to achieve better resource leveling. However, there is an added cost associated with splitting such as startup and restarting costs. This paper presents an optimization model for resource leveling that allows activity splitting and minimizes its associated costs. The objective is to level resources in a way that provides a tradeoff between the extra cost of acquiring and releasing resources versus the extra cost of activity splitting. The model can be used to determine at what values of the splitting cost, the preemption of an activity is recommended. One example problem is solved at the end of the paper in order to illustrate the proposed model. [ABSTRACT FROM AUTHOR]