The purpose of this paper is to assess the contract administration practice of EEP in GIBE IIIrnProject. Questionnaires and Interview are primary data collection instruments which wererndistributed to the contract administration officers and the management members of EEP Gibe IIIrnHydro Power Project equalling to 12 staffs and followed by descriptive and exploratory researchrndesign and Secondary dataâ€™s were collected from the reports and contract agreements from thernEthiopian Electric Power, Gibe III HPP office. SPSS 20 software was used for the analyses of datarncollected. The result of this project work indicates that, the project was not effective in schedulernmanagement, in giving contract administration training to the contract administration staffs and inrnthe availability of resources, which finally leads the project for suspension of work backed by delay,rnunnecessary interest payment and claim issues. Besides, the major challenges of the project whichrnhinders the contract administration practice are reworks due to errors during construction, shortagernof resources, design change during the project execution time for the power intake structure, Poorrnschedule management, poor feasibility study, delay in payments for the completed activities, thernunforeseen geological condition at the base of the main am foundation level which lead the project torninvest more additional time and incur additional cost. Based on the findings the researcherrnrecommended, giving training to the concerned personnel on a contract administration practices,rnsecuring enough resources before the start of the execution of the project, developing a master schedulesrnand work breakdown structures by incorporating important dates and milestones in the contract,rnsecuring enough resources before the start of the project and lesson learning from the previousrnsuccessfully completed project.