Abebe, Dinku (Prof.)Gezahegne, Derege2018-07-192023-11-112018-07-192023-11-112015-06http://etd.aau.edu.et/handle/12345678/9390The Government of Ethiopia formulated the Road Sector Development Program (RSDP) in 1997, and till the end of 2013, local Contractors participation was 46% with amount of ETB 48,416.79 million, contracted for 278 projects, which is 75% of the floated bid. In a competitive atmosphere of tendering, little or no margins are left for future unknowns in a long and complex period of construction wherein the rates and prices shall be based on certain assumptions and any change between what was assumed and what actually happens may form a seed for a claim, and contracts have provision for monetary compensation to mitigate its effect. In relation, this research aims to study the causes of the cost claim events, conduct an assessment of local contractors cost claim management and to assess mitigation measures to minimize the impacts on local contractors capacity participated in the Ethiopian federal road projects. The research revealed that local contractors have poor contract management practice, especially in cost claim submission despite there are events that entitle them monetary compensation under the FIDIC 1987 conditions of contract. The study also indicated that all parties involved in the construction of the road projects have role for the poor achievement of monetary compensation to local contractors; however, a large portion of the contribution is the negative attitude to cost claim determination in the construction industry, poor contract management skills, unfair determination by the consultants and DRE and Employer’s interference in the determination of claims as identified in the research. Thus, it is very important that all parties involved in road projects improve their contract management practices, especially local contractors need to enhance their awareness of contract/claim management to protect their company from cumulative and catastrophe effect of the poor claim management. The Employer shall also play his role for creating positive awareness towards claim management as poor capacity of contractors and industry will be reflected in the success if the road sector development programmes. Keywords: Claim, Client, Contract, Consultant, Contractor, Cost Claim, Dispute, Dispute Review ExpertenClaim; Client, Contract; Consultant; Contractor; Cost Claim; Dispute; Dispute Review ExpertThesis