Abstract: Expropriation and compensation for road construction are currently big issues and have many challenges which are more unique than for redevelopment. This research focuses on the capacity of the institutes, workflows, perception of expropriated and rules effectiveness in expropriation and compensation. This research helps for scholars to see and pave for further research; and for city government to implement expropriation and compensation in an appropriate way. The research types used were descriptive research and data were collected through a questionnaire and interview. Primary data and secondary data were used in this study. The samples were taken from official and expropriated landholders for asphalt road construction project site of CMC to WONDIRAD and ROOT school to BONO WUHA. In this focus ground, the difficulty existed not only human capacity building, but also lack of full human resources. The flow of works challenges for expropriation and compensation of road construction like inconsistency design and change of marks on the property of expropriated. In addition, the time given was too short from an authorized body to perform expropriation and valuation. Some expropriated landholders were not satisfied by expropriation and they were opposed due to compensation, and involuntary to leave and changes of plan once again. The rules were not effective due to non-considerations of the current site and ignorance of some expropriated. The compensation was not honest and descriptive detail for valuation. The implementation of rules in the study areas was not effective, due to discussion were not fully aware the expropriated, too short time given to expropriated, unfair compensation amount and exposition of expropriated to demolish their property more than two times which leads extra cost for them.