This research discusses the main causes of contractor’s failure in Indian construction industry. The objective of this research has been achieved by means of questionnaire survey and statistical analysis of the data collected. The opinions of contractors regarding the severity of each cause are to be checked by Analysis of Variance Post hoc test. Case study has been conducted for projects to validate the severity of critical factors so identified according to the actual performance.

Keywords : contractor’s failure, critical factors, statistical analysis, analysis of variance.