Contract administration issues are almost always unavoidable in the Ethiopian construction industry due to the country's conventional project procurement procedure. Furthermore, the bulk of local construction companies handle their projects by hiring engineers with little or no experience managing building projects. As a result, contract administration is a huge problem in the sector. With financing help from MDG, the Federal Democratic Republic o f Ethiopia began implementing a number of projects to improve the country's health care facilities and services. These MDG supported projects are no exception but faced with construction contract administration challenges. The goal of this research is to a ssess the major challenges in healthcare facility construction contract administration in the Amhara region, which is supported through the Millennium Development Goals budget. The goal of this research is to assess the major challenges in healthcare facil ity construction contract administration in the Amhara region, which is supported through the Millennium Development Goals budget. A cross-sectional survey method was used to assess the problem. The sampling procedure was multi -stage purposive sampling. The sample included all key parties (9 clients from Amhara Health Bureau), (13 consultants), and (10 contractors) in health care facility construction in the region. Both quantitative and qualitative data was collected from primary and secondary sources. SPSS statistical software was used for analyzing the quantitative data. Qualitative and quantitative data collected was analyzed using triangulation method. Descriptive statistical analysis method was used to explain the situation. Secondary data were also c ollected to enrich the study. The findings of the study showed that Amhara National Regional state received its share from MDG implementation budget of the country which amounts 17,883,800,000 birr for the budget to health, school, road, water and others constructions. From 2012 to 2016, the Amhara regional state allocated 3,111,199,569.4 birr for healthcare facility construction of which only 2,614,808,026.56 birr utilized for construction of 58 new primary hospitals, 2 old hospital expansion, 55 new health center and 4 health colleges. Due to many reasons significant number of the projects didn’t accomplish on time and with intended budge allocated for each project. Survey participants, who were divided into five groups, defined and prioritized the key factors that cause conflicts amongst stakeholders in health facility construction in the vi Amhara region. Insufficient working drawing details, delay in progress payment by the owner, evaluation of completed works, and a poorly written contract were the most frequently claimed causes of conflict among the top five factors of contract dispute. All stakeholder groups agreed that contract and specification dispute problems group was the most severe dispute problems, which affected health facility construction perfo rmance in the region. Financial dispute problems were considered the second most severe dispute problem group in construction projects followed by other dispute problems in the sector. Key Words: Health facility construction, Contract administration, MDG, Dispute