Lean implementation can typically be classified as efforts aimed at reducing waste to lower costs, increasing sales margins, improving resource efficiency and thus improving the company's profitability. Reduction of waste may include improving inventory management policies, closing unprofitable stores, maximizing the use of store space in stores to concentrate on more profitable products, improving employee skills, improving transportation and logistics efficiency and preventing faulty goods. This paper attempts to summarize the findings from various studies regarding lean practices and firm performance. The main objective of this study is to critically review previous studies on the effect of lean practice and firm performance. The researchers were able to review about 20 articles related to the topic of discussion. Lean practices from the theoretical perspective offers massive benefits and opportunities for all enterprises who have adopted it, including construction firms. Many of the past studies reported that lean practices positively impact on firm’s performance. However, the study finds out that construction firms need adopt lean practices in their line of business operations for them to remain profitable and increase performance, especially in terms of delivering customer value, minimizing cost, completing the project on time as these positively affect their performance in a competitive market environment. And thus, the paper concluded that based on the positive impact of lean practices on many firms, construction firms in Kingdom of Saudi Arabia should strive toward adopting it in their lines of business operations. At the same time, more work should investigate the specific influence of lean practices in order to provide in depth knowledge on the issue concerned.