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Construction industry in developing countries is reported to be insufficiently developed to meet the national development objectives and demands even though is an important player in the economy of Ethiopia. Small, medium and micro enterprises (SMMEs) are an important sector of any construction economy. The need for efficient SMMEs is well documented and cannot be over-emphasized. SMMEs are vital in their contribution to employment creation and value reorientation. Emerging small and medium contractors are reportedly beset with a prevalence of client dissatisfaction (Green, 1999). Notwithstanding, the emerging small and medium contractors face some serious challenges in their endeavor to deliver the infrastructure projects effectively by performing their contractual responsibilities. Considering that client satisfaction is the crucial variable underpinning current and future prospect in the building industry, it is necessary to investigate the challenges facing the emerging smalland medium contractors' contractual responsibility.