In today’s competitive and hectic global economy effective contract management is paramount for effectiveness of procurement to guarantees organization in realizing its business value by successful delivering goods on time and within budget. The aim of this study is to investigate the effect of contract management practices on the effectiveness of procurement of goods in Ministry of Revenues (MOR), Bahir Dar Branch. Research was executed by means of 5-point Likert-scale questionnaires where employees from Procurement, Logistics and Warehousing Department, operation staffs, and management office staffs were invited to share their experiences of the same. The Literature acknowledges the importance of contract management for effective procurement by citing important terms and conditions for good contracts. This research has discovered that there is a dependency of effective contract management on effective procurement. Therefore, contract management is essential for effective procurement. The researcher recommends MOR, Bahir Dar branch office to recruit more experienced and qualified staff for its contract management function, to have e-contract management solution in order to have visibility of its active contracts at every stage of the contract lifecycle. This is because MOR, Bahir Dar branch office improves its ability to manage its procurement contracts at practically every stage of contract life-cycle, the more it can transform contracting into an effective procurement management competency.