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The construction project is a complex and challenging process that may present many risks on different levels. That process calls upon the good understanding of existing laws and other related rules, collecting from different location different inputs, like manpower, construction equipment, setting the clear and good channel of communication between different stakeholders who are proprietors, architectures, deliverers and other different suppliers. The general objective is to assess the contribution of contract management on the performance of construction industry and specific objectives are following: to find out the main elements outlined in the contract management of construction industry in Institution of Engineers Rwanda , to set out the main risks factors that impede the performance of construction industry in Institution of Engineers Rwanda , and to ascertain the relationship between contract management and performance of construction industry in Institution of Engineers Rwanda . The result of this research is important to the researcher, to Institution of Engineers Rwanda, and to the other researchers. The researcher used purposive research design because it is suitable to this research. The target population of this research comprised the whole members of Institution of Engineers Rwanda with a number of 410. Researcher used sample size of 80 members of Institution of Engineers Rwanda from the target population above by using Slovenie‟s formula. The researcher also used structured questionnaire to collect data. The instrument was been pre-tested and rating was been done in accordance with the Likert scale of strongly agree, Agree, Neutral, Disagree and Strongly Disagree. The researcher then assessed the contribution of contract management and performance of construction industry and makes some recommendations for further studies. The data collected were analyzed using statistical programs for social sciences (SPPSS) 18 version, the data were entered in software and assign a number to each response item enter a clear code, clean data and also produce descriptive statistics, graphics and cross tabulations. With regard to objectives of this study, the majority of the respondents strongly agreed to the elements used in contract management of construction industry and risk factors that can affect the performance of construction industry. The researcher got intercept a = 0.212 and slope b = 0.92 Thus the linear equation was Y = 0.212 + 0.92X, with significance value of .023 Where Y was the performance of construction industry and X was contract management. It was from relationship between contract management and performance of construction industry that the researcher established the equation. This implied that there was a strong positive relationship between contract management and performance of construction industry. The result of this research project was importantly to the engineers for improving skills related the contract management and government for setting good regulation related the construction industry. The researcher recommended that to engineers to identify before all risks that may decrease value of the contract in construction industry, in addition to that it was recommended to determine the qualified personnel that will be used along the journey of contract management.
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