Past researches indicate that in heavy machine intensive construction projects, equipment costs approximately can take 30% of a company‟s asset. As a result, equipment has to be managed properly to ensure maximum return on investment, increase productivity and minimum operating, maintenance and repair cost by adopting proper planning, selection, acquisition, operation, maintenance and replacement policy. Based on a close observation of Amhara Road Work Enterprise and Amhara Water Work Construction Enterprise reports and consultation of some concerned bodies, there are problems in managing construction equipment. Hence, this requires immediate attention and need detail investigation of the current practices in managing these assets and identifying the drawbacks. Therefore, the research is aimed at producing a data that justifies the current practices of equipment selection, acquisition, operation, maintenance and replacement in these enterprises. The data collection method is integrated using questionnaire, interview and document review. Experts under equipment administration department, equipment maintenance & repair department, construction operation department and contract administration & supervision department of the enterprises were the population under the study. In this study, a descriptive statistical data analysis has been used. The study identified that the enterprises follow inadequate and manual process/ subjective decisions in equipment selection, acquisition, replacement and rental rate determination due to the absence of well-defined equipment selection, acquisition and replacement policy, manuals and procedures. The study also determined that huge equipment acquisition cost, downtime, improper timing for replacement and nonavailability of spare parts are some of the major problems in the enterprises. The study recommends that the enterprises should form a “team” or a crew under the enterprises‟ equipment administration department who is dedicated to carry out lifecycle operation analysis to each enterprises‟ owned equipment, establish standards, policy and procedures for equipment management.