The construction industry has complexity in its nature because it involves large number of parties as clients, contractors, consultants and others. Many variables, such as time, cost, quality, specifications, and stakeholder satisfaction, are used to measure project performance. In order to deliver school building, the Amhara National Regional State(ANRS) Education Bureau employs private building contractors as well as public micro enterprise contractors. The major objective of this research is to assess and compare the performance of micro enterprise and private building contractors, with an emphasis on project performance, delivery speed, and cost. The research is conducted using a mixed method, which includes both qualitative and quantitative approaches. Questionnaires, in-depth interviews, and field observations are used to obtain primary data. The internet, websites, books, journal articles, literature, payment certificates, provisional acceptance, and contract agreements were used to obtain secondary data. The information acquired is analyzed using the descriptive approach. According to the findings there are clear differences between micro enterprise and private building contractors with respect to their project performance. The time required to accomplish projects built by micro enterprise contractors were at least 6.4 percent lower than that of projects built by private building contractors. Similarly, the cost incurred by projects built by micro enterprise contractors was at least 6.36 percent lower than that of projects built by private building contractors this shows micro enterprise contractors take less time and cost than private building contractors. Based on the data collected from the questionnaire the major challenges that most frequently occur in Amhara National Regional State(ANRS) Education Bureau building construction projects is cost as compared with time. Escalation of material prices and equipment cost has a great impact on the project performance. Project time performance has also been limited by the lack of resources, financial constraints, too many change orders from owners, and delays in payments from the owner to contractors. Keywords: Project Performance, Private building contractor, Micro enterprise contractor, Cost performance, Time performance