Construction industry of any country plays a dynamic role in the prosperity and development of that country. It contributes more than any other industry in the economy growth and stability. Continual improvement firm performance can be measured through quality of work and services they provide to customers. However, for companies to compete with each other as well as in global markets they must need to adopt such techniques which are applied in the developed countries. One of the techniques is the application and evaluation of total quality management practices. As, this technique is already applied in other sectors such as manufacturing, services, health and development in the developed countries. So, this study and its findings are based on measuring the effects of total quality management practices i.e., organizational leadership, policy, and strategy, customer focus and process management on firm performance based on employee satisfaction and timely completion of projects. To check and measure the impact of TQM practices 100 construction companies were taken as sample/ These TQM practices were implemented on C-2 category construction companies of Khyber-Pakhtunkhwa, Pakistan registered with Pakistan Engineering Council. The findings of this study concluded that all the listed practices have direct and indirect effects on the enhancement of form’s performance.