Ethiopian Roads Authority (ERA) representing the Government of Ethiopia manages roadrnconstruction projects in Ethiopia. Local and International contractors are carrying out substantialrnportion of these road construction projects. However, most of the road projects are sufferingrnfrom factors negatively affecting the performance of both Local and International contractors.rnIdentifying the major factors affecting the performance of Local and International contractorsrnplays essential role in devising appropriate measures to improve the performance of contractorsrnto complete projects within the desired performance requirements. rnA total of (37) factors that influence performance of Local and International contractors and arntotal of (15) factors that particularly influence the performance of International contractors werernidentified based on the literature review. The identified factors were categorized into groupsrndepending on types of performance process and statistical analyses of their significance wererncarried out based on the questionnaire survey with senior professionals from both groups ofrncontractors. rn The outcome of these analyses showed that all respondents agreed that the performance of therncontractors were influenced by all the factors indicated in the questionnaire and the top tenrnfactors which significantly affect performance were then identified. rnRecommendation towards improvement of the current performance for Local and Internationalrncontractors and ERA are illustrated, which include: Local contractors shall ensure that they havernenough capital base and proper cash flow and capacity building of high level professionals andrnintermediate skilled personnel to be given prior attention; International contractors shall have rnproject knowledge of the specific country they plan to work with; and ERA shall establishrnindependent right-of-way team and stipulate the approval of claims with the time-frame so as tornfacilitate the progress of works. rnFuture research is recommended, focus in studying the effect of the identified performancernfactors both on the contractors and road projects administered by ERA.