Highway construction projects have always suffered from cost overruns due to extended project delivery, causing a loss of public funds. Since highways are the backbone of a nation, the purpose of this study is to measure the criticality of the factors that influence the performance of highway projects. A survey instrument was prepared and distributed to 185 project managers. To achieve the aim of the study, exploratory factor analysis was used and the standard factor loading was the criteria to measure the criticality. From the analysis, it was identified that the factors were grouped under four categories: (a) Execution constraints (b) Operational factors, (c) Stakeholder and political constraints, (d) Design Constraints. Further, it was concluded that the complexity of the sub-contractor’s performance, frequent modification in alignment, project design, loopholes in safety, and ambiguities in specifications are the main factors that impact the performance of highway projects. Therefore, it was recommended to develop an efficient project planning methodology which is a continuum of project management skills and tacit knowledge of managing a site which operates efficiently.