Monitoring and evaluation method is a method that comprises by gathering information and evaluating of it in order to determine whether the progress is being made towards the planned goals and objectives of a project. The aim of this thesis is Assessment of Monitoring and Evaluation Practices and Challenges of Cow and Poultry Farm Shade project implemented by the Addis Ababa city construction bureau. The study adopted a descriptive research design and Data for the study is collected using the questionnaire by developing and distributing Questionnaires. The target population of the study is employees, who are directly and indirectly involved in the project, of Addis Ababa city Construction bureau. Among these target population forty one samples were chosen to get feedback form respondents regarding questions listed in the questionnaire about practices and challenges encountered in the project by using purposive sampling technique. The result of the study shows that the firm has a well-organized M&E system on its projects, but it does not have a guide and framework for it; the study also showed that the function and role of the Monitoring &Evaluation system is not effectively promoted to the staff. Furthermore the employees conducting the Monitoring &Evaluation practices do not have any prior training provided to them or what so ever rather they conduct the process from previous projects experience only. The study also identified challenges in practicing M&E such as Lack of time and resources, Difficulty in communicating the results of M&E and the data tampering during evaluation and monitoring and M&E practices are not being given priority by the management of the firm. Thus, The Addis Ababa city construction bureau should improve the adequacy of its staff performing the monitoring and evaluation practice of the project. A department which is specifically responsible for M&E should be created and a continuous training for the members should be provided. In addition, sufficient time for preparing conducting M&E and adequate resources should be assigned to the process.