Risk management has been acknowledged as an area of concern in the management of construction project risks. One of the critical phases of the risk management process is risk identification, for if risks are not identified, they can have an adverse impact on the successful completion of projects. There appears to be little evidence of studies highlighting the correlation between project risk identification and project performance in South Africa construction industry, especially among small and medium contractors. Therefore, the current study aims to investigate the extent to which project risk identification leads to project performance of SMEs construction project in Gauteng, South Africa. Data were collected through a questionnaire survey among SMEs who were conveniently sampled in Gauteng. Descriptive and inferential statistics were used to analyze data collect. Findings revealed that there is a positive significant relationship between project risk identification and project performance that project risk identification leads to project performance. This finding suggests the significance of the risk identification phase in the management of project risks.