This study undertook an examination of causes of public-sector construction disputes or claims and their settlement in Ethiopia and Amhara National Regional State in particular. It investigated and identified the major causes of the dispute resolution processes and procedures which parties to public-sector construction disputes employed to address such disputes. The study also assessed the legal frameworks which influenced parties’ dispute resolution choices. Consequently, strategies for efficient and effective dispute resolution were developed. The study adopted a qualitative research design. Both doctrinal and empirical approaches were employed in data collection. It was found that, time and cost overruns were major sources for causes of public- sector construction disputes generically include; contract, payment, owner, design, consultant related, external and general factors are major factors. In addition, litigation, negotiation and arbitration (at national level) were the most used dispute resolution mechanisms. Others such as mediation, dispute adjudication board, partnering were not or rarely used. The dispute resolution processes were characterized by high cost, low satisfaction with outcomes, inconsistent decisions and negative effect on relationships. The incomprehensiveness of legal framework coupled with inconsistent practices dealing with government construction disputes poses difficulty in promoting early and amicable settlement culture in Ethiopia/ ANRS in particular. To deal with these challenges and achieve efficient and effective dispute resolution processes, knowledge, system, and institutional building measures are proposed. Possible remedial strategies of claim avoidance and dispute minimization designs such as partnering are recommended. The thesis divided into four Chapters. The first chapter focuses on the research proposal. chapter two deals with the theoretical and conceptual foundations of construction disputes and their settlements in general. Chapter three deals with the assessment of Ethiopian laws and practice in public- sector construction dispute settlement. Chapter four deals about the underlying root causes of PSC disputes in ANRS and dispute settlement practices in light of court cases, disputes settled through negotiation. Keywords: Construction, Ethiopia, Amhara National Regional State, Public-Sector, Claims, Disputes, Dispute Settlement.