Performance Evaluation of Construction Project requires effective management of its performance. So, Periodic Project progress and performance evaluation are vital to have adequate means of obtaining information about the progress of a project concerning the baseline of the project. Unfortunately, the construction industry in Ethiopia is exposed to the performance of construction projects being tracked utilizing planned cost versus actual cost measures only. The general objective of this study was Performance Evaluation of Construction Project by Earned Value Management System in Amhara Waterworks Construction Enterprise. Thus, this research was conducted using both quantitative and qualitative approaches. In this case, purposive sampling procedures were used. The study was conducted based on a questionnaire survey; interviews and document review at Amhara waterworks construction enterprise. Questionnaire surveys were analyzed by using percentage and Relative Important Index. Based on the total of 44 respondents for quantitative data and six for qualitative data participated. Finally, this study was also conducted on the whole twelve ongoing projects to measure project performance only six ongoing projects were selected by systematic random sample method. From those one project was analyzed based on per activities of work. The output of the research was the least implementation of the Earned value management system to evaluate the project performance due to the barriers that hinder to implement in the organization. As a result, a lack of motivation and top management support. From the desk study, no one project was performed on the schedule. But regarding tocost analysis, one project was over the budget, two projects were almost on budget, and the rest three projects were performed under the budget due to their behind the schedule these projects were exposed to extra costs to complete the project. Finally, theresearcher recommends overcoming the barriers of Earned value management and improving the use of Earned value management system; the top management should give attention to and provide training for their project practitioners. Keywords: Project Performance; Earned value management system (EVMS); Earned value analysis (EVA); Project monitoring and control.