The success and failure of any projects depends on its performance .the road construction sectorrnis one of the key sectors of Ethiopian national economy. Nevertheless, it undergoes throughrnseveral problems that affect project performance in terms of project performance parametersrnlike time, cost and quality. This study was conducted to identify factors affect projectrnperformance in the case of Bishoftu town cobblestone road construction. lThe lmain lobjective lofrnlthislstudy lislto lidentify lthe lfactorlaffecting lthe lproject lperformance lin lthe lBishoftu ltown lcobblernlstone lconstructionlprojects. The methodology applied is descriptive design along cross sectionalrnmethod as the study focuses on identifying and describing those factors that affecting the projectrnperformance. The sources of the data for the study are primary data and review of therndocuments. Questionnaires were the main instruments used in this study. The target populationrnsize of the study was 89 respondents. This study was undertaken in Bishoftu Town cobblestonernroad construction projects. The questionnaires were distributed to all target respondents fromrnwhich 64 filled in and returned. The data used for this study comprises the cobblestone projectsrnstarted in the last two years from 2010 E.C. the projects reviewed were 10 from the 51 projectsrnthat were selected using purposive method. The respondents for this study were contractors,rnconsultant, client and regulators auditors. From both analysis of the primary data andrnsecondary, it was found that there were problems of project performance in the town. lTheltopltenrnlmostlinfluentiallfactorslthatlwere laffectinglcobblestone lprojectslperformance lare lawarding lof lthernlcontractltolthe llowestlbidders, lescalationloflmateriallprice, lpoorlplanninglandlscheduling, lclientsrnlemphasis lon llow lconstruction lcost, llow lparticipation lof llocal lcommunity lin lthe lprojectrnlimplementation, ldifficulty lin lweather lcondition, lexcessive lbureaucratic lcondition, lpoor luse lofrnlproject lsoftware, lclientslemphasislon lquick lconstruction linstead lof lquality. Having such kinds ofrnfactors, the management would decide to minimize problems to ensure the project objectives.rnFurther study should be conducted in the factors affecting project performance in thernconstruction both in private and public construction sectors using inferential statistics in orderrnto enhance generalizability in the sector.rnKey Words: