Construction projects are very complex and dynamic. Its dynamicity subjects the construction projects to several risks that can impact project performance. Therefore, study aimed to explore construction risk factors that influence road and building projects, to evaluate the level of impact of risk factors on project performance ,to develop a model that shows the relationship between risk factors and project performances and finally to develop risk management strategies to improve the performance of construction projects. The risk factors were identified from the literature review, and then data were collected by a major tool questionnaire, focus group discussions and case study. 154 valid responses were collected through questionnaire survey from the construction professionals. Exploratory factor analysis (EFA) was employed to extract the risk factors of construction projects where eight independent factors (risk factors) and one dependent factor (project performance) were extracted. Structural Equation Modeling (SEM) through Analysis of Moment Structures (AMOS) software version 21 was used to analyze the relationship among risk factors and their impact on project performance. The result of the Structural Equation Modeling (SEM) examines the significance of risk factors impacting project performance. Financial risk, resource risk and political risk respectively found the most dominant risk factors impacting project performance followed by managerial risk, right of way and utility risk, design risk and construction risk factor. Despite the limitations of the study, this empirical model provided by this research work would be beneficial not only for construction practitioners but also for researchers also to show how project performance could be impacted by risk factors of construction projects and offers an extensive methodological contribution to the future research work. Keywords: Construction Risk, Structural Equation Modeling, Project Performance, road and building projects