Team building means bringing all the team members to work together towards one common goal. The integrity and creativity of all the team members leads to a successful project. Effective team management is essential for high team performance. But it is not an easy task to build a great team. Most people agree that the challenge in projects is not the technical aspect but managing the project team. Thus, this research is done to identify challenges faced in building an effective team in projects under Rama Construction P.L.C. The objectives of the study are to identify team building practices, team dimensions and challenges of team building in four selected projects under this company. In order to conduct this study an interview and five-point Linkert scale questionnaires were used. The major findings of this study indicates that there are no or minimum challenges regarding acquiring and leading team members and there are good practices such as, project managersâ€™ technical capabilities and leadership skills, team members being encouraged to be innovative and to increase their decision-making skill, good communication between team members and right conflict resolution methods. The major challenges found to be, more focus being given on personal achievement rather than team achievement, no regular team performance evaluation being conducted, no regular meetings being held to discuss the progress of the team and to take corrective measures, high team member turnover, trainings not being given to increase team performance, productivity, effectiveness and efficiency and team members and not understanding the vision of the organization.