Construction sector has complexity in its nature since it contains large number of parties as clients, contractors, consultants, shareholders, regulatory bodies and others. In Ethiopia, the number and complexity of building construction projects is increasing from time to time. However, it becomes very difficult to complete projects based on allocated cost, time and quality. The objective of this research is to determine performance related problems of construction, to examine the factors that affect construction project performance and to identify the key performance indicators at Bole International Airport terminal expansion project and Minilik II Referral Hospital Eye care center construction project and forwarding recommendation to minimize performance problems. The study was carried out based on literatures review, a questionnaire survey and site observation. A total of 229 questionnaire survey was distributed to 18 owners and 211 contractorsâ€™ representatives. A total of 194 questionnaire survey was returned 17 (94.44 %) from ownersâ€™ side, which includes consultants, and 177 (83.88 %) from contractors. Based on the data collected from the samples and questionnaire and analyzed by using percentage analysis method, mean calculation and standard deviations, the finding of the study revealed that the most frequent performance problems that most frequently occur have been cost, time and productivity. The most critical factors that affect performance has been escalation of material prices, Shortage of foreign currency, Occurrence of Communicable disease, Occurrence of Communicable disease and Equipment and machinery cost escalation. All the factors that affect construction performance have been grouped into cost related factors, time related factors, quality related factors, productivity related factors, client satisfaction related factors, health and safety related factors, regulatory and community satisfaction related factors, and innovation and learning related factors. The key performance indicators have been identified as cost, time, productivity and quality. Itâ€™s expected that the findings of this research will help to improve the performance of the construction industry in the future.