Fleet management embraces all activities required to sustain and function equipment all over its life since the starting phase of equipment acquirement to the last phases of asset disposal. Such activities comprise maintenance and repair, inventory control, training, and safety issues. Managing a fleet can be a challenging job unless special tools to help control performance. These performance procedures are made possible by the improvement and implementation of computer-aided fleet management systems. Performance techniques give business devices to screen, control, and improve each day′s task and work concerning strategic goals. The main purpose of this study was to investigate the influence of fleet management practice on construction performance (Time and Cost) in the case of Amhara Waterworks Construction Enterprise. The study employed a crosssectional explanatory and descriptive type of research design and mainly quantitative data analysis techniques. Descriptive statistics such as mean, percentage, and frequency tables were used to describe the data. From the total targeted population, 137 samples purposefully drawn by using Purposive quota sampling techniques. Inferential statistics multiple regressions were employed to answers the basic question and test the hypothesis respectively. Furthermore, the data were encoded, processed, and analyzed using SPSS.V20.Moreover, the results of the study suggest that the construction performance of AWWCE is Low. The study also found a positive correlation among the five variables (repair and maintenance management, fuel management, vehicle tracking management , drivers training and management, and vehicle disposal and replacement management) of Fleet management practices. Regarding the correlation, it is possible to conclude that there is a strong (Repair and maintenance, Driver training and Management) and moderate (Fuel management, Vehicle tracking and Vehicle disposal and replacement management) positive and significant relationship between the five variables with construction performance. The result of the study also confirmed that, among five independent variables two of the variables Repair and maintenance and Driver training and management practices are statistically significant and positively influence the construction performance of the Enterprise. Hence, in order to improve the construction performance of Amhara Water Works Construction Enterprise, the repair, and maintenance garage should complete the service and maintenance of vehicles and equipment on time, avoid maintenance rework with a quality inspection and check up to avoid frequent technical failure after service and maintenance. Likewise the organization should implement Driver/operators behavior and communication management system for easy coordination and integration of job assignments, d evelopment and learning program in the organization in succeeding the aim of driver training and management system. In addition to this, in order to avoid aged and inefficient fleets, the enterprise should establish and implement short and long term strategy to vehicle and equipment replacement policy and practice.