The construction industry is a major sector of the economy of a country but it is being criticized all the time by its poor performance. The performance evaluation process is one of the most important aspects of project management, and identifying the key performance indicators that affect the success of the project can lead to success of the project. In light of these, this study aimed at investigating Performance evaluation Practices for public construction projects in the case of Bahir city. The research investigates existing performance evaluation methods, techniques, and practices, determine the Major factors that affect PE practices, to determine the importance level of performance indicators and determine the weight of BSC perspectives by using AHP. This research has been conducted through literature review followed by a field survey. The field survey consisted of two questionnaires. In the first questionnaire, project managers, site supervisors, physical engineers and office/site engineers were asked to fill in the questionnaire. In the second questionnaire, a group of experts were asked to fill the questionnaire that is based on AHP to determine the weights of balanced score card perspectives. The findings of the study point out there is good PE practices in the construction currently but there is no fixed, structured and regular evaluation model rather, they use cheek list and cluster creating to evaluate performance of the project. And the major factors that affect performance evaluation practice are management related factors, client related factors and contractors factor and based on analysis 2 using expert choice Importance level of key performance indicators based on AHP, it was found that Clients satisfaction and Internal Business Process Perspective have higher importance level in project performance compared to other perspectives and Project Team Perspective, Innovation, Learning and Growth Perspective and financial perspective follows secondly from the most important perspective then Health, Safety and Socio-Environmental Perspective takes the last place from the performance perspectives. Key Words: - Performance evaluation (PE), construction projects, key project performance indicators (KPPIs)