The Construction industry provides infrastructure that supports the other sectors of the rneconomy. Unfortunately, the industry is saddled with numerous challenges varying rnfrom internal weaknesses to external threats that affect and influence its performance. rnThe success of any organization and any industry depends on the human capital rnavailable. Human capital is getting wider attention with increasing globalization and rnalso the saturation of the job market due to the recent downturn in the various rneconomies of the world. rnThe study is aimed at assessing the impact of human capital development on rnperformance of road contractors. The research focused on Category 1 / GC 1 rncontractors and their performance on asphalt road projects specifically in the ERA and rnAACRA Projects. A questionnaire survey approach involving 36 professionals in rnvarious construction companies were used. The questionnaire sought to elicit response rnfrom the sample by adopting open and close ended questions. Subsequently, the rnresponse data was analyzed using descriptive statistics, relative importance index and rnusing SPSS software. rnThe findings revealed that the managements in almost all surveyed companies were rnwilling to invest resources to ensure personnel development. But, lacks of detail rnevaluation after giving the human capital development were identified as the critical rnchallenges for the performance of the contractors. Project performance was also rnexamined against time and cost and the research showed that the lack of human rncapital development is one of the main reason for projects to complete with overruns. rnThus the study re-echoed the need for well-designed and accepted training policy and rnsystematical evaluation and impact identification mechanism for the improvement of rnskills, knowledge and professional development in the construction industry.