The government of Ethiopia has given significant attention to the road sector considering its immense impact onrnthe socio-economic development of the country as road transport reaches the majority of the people. In thisrnrespect, the Ethiopian Roads Authority (ERA) is mainly responsible for the construction and maintenance ofrnfederal road networks of the country. rnrn rnThe road maintenance and construction practice of ERA is predominantly based on the conventional method ofrnquantity and unit rate based contracts by which several works are planned and carried out. The government hasrnfaced problems in maintaining the serviceability of road infrastructure systems by using these traditional methodsrnof contracting. However, in recent years other alternative contracting methods are attempted including output andrnperformance based road contracting (OPRC) in the Ethiopian road sector. These types of procurement methodsrnhave a substantial success records in many developed and developing countries. Nonetheless, taking the longrnterm nature of the contract into account, OPRC projects require careful planning and capacity from therncontracting authority and the contractor to implement it successfully. rn rnIn the traditional approaches of project delivery systems, after the Contractor hands over the project any failuresrnarising out of design or execution are the headaches of the Employer/Government and heavy costs are spent onrnthe rehabilitation and maintenance of roads that doesn't serve the expected life. In order to tackle the abovernmentioned shortcomings of the traditional approaches of project delivery systems, other alternative projectrndelivery systems that account the serviceability and usability of the road becomes critical. One of the projectrndelivery systems that is being used by different countries and now initiated for implementation in our country (forrnNekemte - Bure Road Project with its three lots) as a pilot project is OPRC (Output and Performance based RoadrnContract) which is believed to address the design, improvement works/construction and management andrnmaintenance services in one package. rn rnThis research tries to study the specific characteristics/features, advantages and disadvantages of this type ofrnproject delivery system from different stakeholderâ€™s perspective, study the experience of other countries, andrnevaluate the contract and performance to date and encountered challenges of the newly initiated projects in ourrncountry by benchmarking other countries experiences and forward recommendation for further implementation forrnEthiopian Federal Road Projects.