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There is a strong correlation between practised critical success factors and the efficiency of performance measurement systems in delivering satisfactory service. Construction project success is affected by multiple diminution factors, including critical success factors. Determining success factors is a vital tool that leads to project success. However, application of critical success factors alone is not enough but is necessary as a part of performance measurement systems. Despite the significance of critical success factors in the construction industry and the vast amount of research conducted, Saudi Arabia's construction industry in general and its performance measurement in particular have not yet been investigated. The objectives were to investigate and identify the various attributes that affect the performance of municipal construction projects in Saudi Arabia. The study was carried out through review of previous research and postal questionnaire returns from 261 Saudi municipalities. The field work was conducted for three key participants, namely contractors, owners and consultants, to identify performance measures and critical success factors to design performance measurement systems. The review concentrated on critical success factors, performance measures and obstacles associated with their application. Statistical analysis techniques used were mean values and analysis of variance. The survey concluded that the most important critical success factors for three stages reduced from 69 to 20 factors.

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