In developing countries with deficit in infrastructure facilities, like Ethiopia, the role of roadrnnetwork expansion programs are fundamental. In line with this logic, Ethiopia is engaging in arnnumber of road construction projects under regional and federal level by implementingrnconsecutive Road Sector Development Programs (RSDP). rnNevertheless, due to the fact that most road construction projects take over a year forrncompletion on one hand and the cost of materials, equipment and labor often increase on thernother; projects face an increase in contract price which leads to major problems inrnadministration of the contract and completing the project within allocated budget. In contracts,rnthe risk and uncertainty caused by fluctuations in cost of construction materials, labors andrnequipments, have been managed by providing price adjustment provisions usually by using arnformula method. However, the implementation of these provisions encores differentrnchallenges regarding to determination of permissible weightings and coefficients as well asrngetting the price indices/price which reflects the actual market conditions. rnTherefore this research aims to explore and analyze the current price adjustment valuationrnmethods in Ethiopian federal road construction projects and evaluate their capability inrndepicting the reality on the ground. To achieve the research aim specific objectives are set andrncase study method is used as research instrument. Accordingly, probing questions and themesrnare prepared and meticulously analyzed against the international practices evolved fromrnliterature review. rnThe research result shows that the price adjustment practices observed on all selected casesrnare different on the subject of the non-adjustable portion, permissible weighting ranges as wellrnas the source of index and prices. rnBased on the analysis of the cases, the establishment of permissible weighting ranges and nonadjustablernrnfactors are found to be inconsistent from the logically acceptable internationalrnpractices. Besides, the question of the reliability and reputability of price indices/prices isrnidentified as point of controversy between contracting parties.