Contract claims are an inevitable fact of life in the construction industry. Contract claims are one of the problems that construction project may face. Claims might cause many affects such as payment delay, extension of time and work suspension. The main aim of this research was analysis of contract claim on building construction project in Addis Ababa, Yeka Sub City by: investigating the causes of contract claim and determining the factors to be considered in the selection of appropriate methodology for contract claim analysis. Literature and survey based studies were made to provide an overview of the different contribution effects of contract claim analysis on building construction project at the selected site. Interviews were also conducted with the three parties which have direct involvement in construction activities to get concrete ideas on the subject matter. Total of 75 questionnaires was distributed to respondents in Addis Ababa, Yeka Sub City building construction projects. Out of these 12 for client’s representatives, 35 for contractors representatives, 20 for consultants representatives and 8 for others companies in order to identify claim causes that occurred in study area. The quantitative data were analyzed using Excel and SPSS version 20 software, while qualitative data was analyzed by content analysis. The Main factors of contact claim cause in study area were identified. These factors further categorized in to four groups as; client related, contract document related, contractor related and consultant related factors. While types of delays, knowing the strength and weakness of the project (project complexity) and conditions of the contract were identified as the factor to be consider in the selection of appropriate methodology for contract claim analysis. It is recommended that the three main contracting parties (Owner, Contractor and Consultant) have responsibility for the effective accomplishment of the project. So each party would take part their homework on time by developing technical knowledge about the effects of Contract claims on the progressive construction projects. Index Terms— causes, claim analysis, Contract claims, construction project and risks.