A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of The Degree Of Master Of Science Accounting And Finance (Msc A&F), Mzumbe UniversityThis paper assessed the challenges facing small and medium civil contractor in Lindi region. The study used a case study design for methodology. It utilized both primary data and secondary data. Data were analyzed in both qualitative and quantitative methods. The overall findings indicates that, due to the combination of factors such as poor tendering applications whereby frequently the small and medium contractors place their tender at a lower rate/amounts of money and after being awarded, poor management and supervisory skills. The study has identified a number of factors that affects performance of small and medium civil contractor in Lindi region, among them; poor financial and technical capabilities; fraudulent practices, lack of coordination between designers and contractors and; poor monitoring and feedback are ranked as the first three factors that affected Small Civil Contractors. In addition, lack of training on quality for staff, lack of management leadership and lack of previous experience of contractor were also identified as factors related to contractors as the most critically ranked factors. It is therefore recommended that policy makers, researchers and practitioners look at improving the human resource base through continuous professional and skill development. In response to the poor performance of small and medium civil contractors in Lindi region, evaluating the performance is particularly important especially in Tanzania where construction works are largely manual.