Construction industry plays a major role in any developing country. This is mainly becauserndeveloping countries are considerably dependent on the growth and development of theirrnphysical infrastructures. With the advent of the liberalization of the economy andrnavailability of funds from international financers, there has been a surge of large-scalerncivil engineering construction in Ethiopia construction industry. This research tried tornidentify the factor which affects local contractors on the execution of international projectsrnby taking BGI project which was executed by local contractor ELMI OLINDO contractorsâ€™rnplc. The research design used for this study was descriptive study to focus on the existingrnproblems that are negatively affecting the project execution of international projects. Therndata has been collected through interview and questionnaires for the project staff membersrnand supporting staffs on head office. The researcher analyzes the collected data by usingrnquantitative descriptive statistics such as percentage, table and charts with the help ofrnSPSS computer software. Based on the assessment of collected results from respondentsâ€™rnon the respective categories out of the project related challenges ELMI was challenged byrnthe project location and site condition as well as by the contract delivery method with thernmanagerial action. With respect to internal challenges ELMI has faced majorly in financialrnresource, practical execution capability in a relation with people readiness and availabilityrnof clear project plan. On the external challenges the supply related issues and governmentrnsupport takes the biggest percent. Based on the assessment of project stakeholdersâ€™ relatedrnfactors designers and consultant related factors take the lead contribution to thernchallenges. Based on the project management measuring criteriaâ€™s the project basicallyrnfails to deliver in time and the contractor was slightly straggling to deliver the project inrnthe expectation of client , with in cost and with the specification of the project requirement.