The construction business has a high risk which comes from the influence of the economic situation on the business and from high competition which may lead to going out of business. The goal of this research is to express and discuss the reasons that cause the contractor's failure from the contractor's viewpoint. This research basically helps the contractor who is looking for success, benefits and good reputation. This research starts with questionnaires according to the statistics, laws and specific criteria; to get required information, and ends with effective solutions and recommendations. About 50 questionnaires were distributed among contractors in the north of the West Bank, while only 37 questionnaireswere filled out,which corresponds to 74% of the questionnaires sent; 25 first class contractors and 12 second class contractors. In the case of North West Bank the contractors’ management is a very important factor to avoid failure and this can be concluded from the top ten causes of failure which the study suggests; namely lack of experience in the workfield, contractor negligence(time , contracts, money), poor estimation practices, economic national slump, delay in collecting debt from donors, negligence labor productivity and improvement, low margin profit due to competition, bad decisions in regulating company policy, border closure, and company organization.