Over the years, Tanzania National Roads Agency (TANROADS) has been facing a number of disputes, some of them ending in judicial courts. The reasons for disputes are partly due to having improper handling of project disputes by TANROADS and contactors as caused by both of them having inexperienced technical staff and in part due to having improper framework or having ineffective guidelines on how to handle such conflicts. To determine the extent of the above problems, it was vital to carry out a study by consulting key stakeholders through interviews in form of questionnaires and by case studies of disputed projects in TANROADS. In this regard, factors that cause disputes in the road construction industry were listed down and grouped into four clusters, namely: technical, contractual obligation, managerial and administrative, country laws and political. The current mechanisms to resolve conflicts in road construction were found to include; amicable settlement, adjudication, mediation, expert determination, neutral evaluation, conciliation, mediation, arbitration and litigation. However, these mechanisms have been inefficient, ineffective and lacking guiding framework to resolve such conflicts. Pursuant to the above, it was recommended that contracting parties need to establish the Dispute Review Board (DRB) similar to that used in UK and USA after signing the contract. Members of DRB shall be appointed by the contracting parties and approved by the National Construction Council (NCC). DRB members will be nominated from areas of specialization such as contract management and administration, engineering, procurement, law and finance. DRB members should have adequate qualification, experience, and technical know – how. It is expected that the Board will assist in resolving the disputes speedily and cost virtually exclusive of the necessity for arbitration or judicial courts. This can be achieved by enabling close communication and friendly settlement encouragement of controversial project related issues at the execution level before they become disputes.