This research assesses understanding of the construction industry stakeholders on the need and importance of supply chain management in all Bahir Dar public building construction projects, construction stakeholders’ relationship in current public building construction projects; identify barriers of supply chain management process in public building construction projects. The study subjects are currently active public building projects in Bahir Dar which are being administered by the city municipality office. The main tools used for the collection of data included questionnaires and interview study as they are used to identify the various efforts that have been made in the past and to examine the challenges of supply chain management. Frequency analysis and mean value are used to examine the results from the questionnaire and findings are presented in charts and tables. The findings show that supply chain management collaboration in construction is contributed to the construction industry to improve quality assurance, increases profitability and benefit to the client. The study also indicates the main challenges of supply chain collaboration in construction and the possible solution for these challenges. Temporary nature of projects, late and incorrect payments and inaccurate data and engineering drawings not fitting the use are indicated as the major barriers for a successful supply chain management in construction. In the other hand the study recommends that post project experience, developing electronic database or SCM Model and adopting the other existing SCM MODELs are necessary solution of CSCM barriers in the long run for successful CSCM. Key words:supply chain, Construction supply chain management, stakeholders’ relationship.