The research work presented is originated with the intent of studying driving behavior, especially in a lateral direction under the influence of construction work activities under prevailing heterogeneous traffic conditions. Initially, a midblock road section is selected, and then macroscopic traffic characteristics were evaluated. Later, Mumbai metro-rail construction work was started on the same road section. As a result, it was planned to study the variation in traffic-flow characteristics for road sections with-and-without construction work zone at microscopic as well as macroscopic levels. For this purpose, video graphic surveys were conducted, and macroscopic characteristics were evaluated for both study sections (with-and-without construction work zone). The results showed that at given flow levels, the stream speeds were dropped from 70 to 50 kph, followed by a drop in efficiency in terms of per-lane capacity. To sense this impact more deeply, vehicular trajectory data were developed over road sections at three different traffic-flow levels. The driving behavior is investigated using different variables, such as longitudinal following behavior, following times, lateral amplitude, and lateral placement, followed by lateral direction correlation analysis. From the investigation, the results show that the following-hysteresis plots for vehicles are found to be slender in a construction work-zone, revealing the conservative approach in driving behavior. Furthermore, following-time analysis also supports the same interpretation. Given the smaller size of vehicles, the vehicle tends to possess extra lateral freedom and hence is responsible for the seeping phenomenon through a porous media in the traffic stream. As an impact of reduced road width, capacity (per-lane) values are found to be higher in the base section than the section having a construction work zone. Further, based on the conceptualized framework, safety in the traffic stream over the study sections was evaluated. Finally, the importance of cautioning drivers the construction work activity in advance was well revealed from the safety analysis of this work.