Construction industry has complexity in its nature because it contains large number of parties as clients, contractors, consultants, stakeholders, shareholders, regulatory bodies and others. In Ethiopia the number of building projects is increasing from time to time. However, it has become difficult to complete projects in the allocated cost, time and quality. The aim of this study is to determine performance related problems, to identify the factor that affect project performance and to identify the key performance indicators in south region selected university construction projects and forwarding recommendation to minimize performance problems. The study was carried out based on literatures review, a questionnaire survey and Case study. A total of forty-seven questionnaire survey was distributed to 12 owner’s representatives, 19 contractors and 16 consultants in south region selected university building construction projects. A total of thirty five questionnaire survey was returned 10 (83 %) from owners, 14 (74 %) from contractors and 11 (69 %) from consultants Based on the data collected from the samples and questionnaire analyzed by percentage analysis method the finding of study revealed that the major performance problems that most frequently occur have been cost, time and quality. The critical factors that affecting performance has been escalation of material prices, unavailability of resources, number of disputes between owners and project parties, review of failures and solving them and quality of equipments or machineries and raw materials. The main key performance indicators have been cost, time and quality. It’s hoped that these findings will guide efforts to improve the performance of the construction industry in the future Key Words: Factors, Performance, Key Performance Indicators and Construction Projects.