In the construction industry, contractors have many challenges on their progress andrnperformance while on the other hand opportunities that lead them for success as well. The largerncontractors today could have once been small contractors and vice versa. The challenges facedrnspecifically by lower grade contractors may determine their overall presence, involvement andrnfunctionality to a large scale. Since these lower grade contractors need to stay in the industry andrnactively perform in order to progress and develop, it is vital to identify the triggering andrnhindering factors and challenges that affect their progress, development and presence as a firm.rnThis research helps to recognize the difficulties, challenges and factors revolving inside andrnaround lower grade contractors. The research will also give good background information andrnwhat new small contractors should be aware of the industry‟s environment before they jump tornenter into. The necessary measures and strategies to be taken to enable and capacitate theserncontractors are also been indicated.