Construction sector is criticized for sub-optimal performance all over the world. The situation is no different in case of Pakistan construction industry. Being regarded as an answer to challenges framed by globalized competitive environment, performance measurement discipline has received much attention among researchers and construction firms during last two decades. Uncertain economic conditions, social pressure and fierce competition have forced construction firms to concentrate more on measuring organizational performance to remain competitive in the market. Construction companies often find it difficult to identify and select relevant set of measures, considering their strategies, and critical processes. Many managers still make decisions mostly based on their intuition and common sense and on a few traditional financial measures while performance drivers like customer satisfaction, processes and innovation & learning are not paid adequate attention. This research has focused three areas related to performance measurement. First objective is to establish the purpose, characteristics and features of performance measurement systems currently practised by Pakistani contractors; second is to identify and validate key performance indicators (KPIs) based on balanced scorecard that are considered most relevant to measure company level operational and strategic performance and finally, effort is made to develop a performance measurement framework for Pakistan construction firms that can act as strategy map for successful running of construction business. Main contribution of the research is finding out relevance of certain organizational performance measures related to four perspectives of balanced scorecard. The main outcome of the research is expressed in terms of a typical strategy map that can be used by indigenous constructors to design their performance measurement systems. Besides the introduction part, this dissertation comprises five chapters. Chapter two covers the all important aspects linked to performance measurement like performance measurement systems, its life cycle, evolution and factors affecting its effectiveness. It is followed by the discussion on balanced scorecard, the important feature of performance measurement and this research. Chapter 3 presents the research aim, objectives and methodology. It discusses the various stages that have been followed for this research and justifies the decisions that are made to conduct this research. Chapter 4 briefly discusses the steps leading to data collection. Development of questionnaire has been explained at length. In addition to the survey instrument, sample strategy and mode of data collection is also elaborated. Next chapter comprises different tests done to check reliability, validity and hypothesis testing. Chapter 6 presents the discussion, conclusions, and limitation and future research areas ending with the contribution of this research in form of performance measurement framework tailored to suit the needs to domestic infrastructure construction firms.