<p>This study aims to evaluate the construction project performance by the earned value management system in the Amhara Water Works construction enterprise. The study was conducted using a questionnaire survey, interviews, and document review at Amhara Water Works Construction Enterprise projects. The study was conducted on 12 projects to measure project performance. A total of 44 respondents participated in the quantitative study and six in qualitative data. The study focused on the assessment of the practice of the earned value management system and factors that hinder its implementation in construction. Based on the study, one project was incurred over cost, two projects were completed at planned cost, and the other three were performed under the budget. These projects were needed over cost to complete the project due to improper resource planning, inflation, and poor employee management. Poor managers' commitment to practicing EVMS, a lack of support from team members, and a lack of common understanding and proper training are the main barriers hindering the practice of EVMS. Training project practitioners have a vital role in implementing an earned value management system. An earned value management system enables project managers to track potential cost challenges and time delays earlier than project progress. It is also vital to enhance the communication between contract parties and develop the productivity of machineries and labour by optimizing resource allocation. Integrating EVMS with BIM and lean construction concepts is vital to boost the Ethiopian construction industry.</p>