A Dissertation Submitted in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Science in Procurement and Supply Chain Management (MSc-PSCM) of Mzumbe University.Construction industry is realizing the plans and specifications for the physical structure. The project is success when it is completed to meet customer needs without any issues and problems in terms of time, quality and budget allocation. Therefore, the general objective of this study was to investigate whether there is relationship between the project procurement method and disputes occurrence in Tanzania construction industry. Fifteen possible causes of disputes arising from traditional method of procurement and five effects resulted from these disputes were identified from the field as responses from the respondents. The list of causes and effects were subjected to a survey questionnaire for the identification of the most important causes and effects. The field survey included 38 respondents made up of 3 contractors, 6 clients and 29 consultants.The overall results of the study indicated that the respondents generally agreed on causes and effects of disputes arising from Traditional method of procurement in construction projects in Tanzania. It was also revealed that the main reason of using traditional method of procurement is due to the requirements of the Public Procurement Act of 2011 and its provisions which require transparency and accountability to be ensured by all parties involved. The study concluded that traditional procurement should be used when a programme allows sufficient time; consultant design is warranted; a client wishes to appoint designers and contractors separately; price certainty is wanted before the start of construction; product quality is required; and a balance of risk is to be placed between the client and contractor. Based on the findings of the study, it was recommended that general improvement measures that relate to the new methods of procurement such as making changes to the existing legal regulations, and the development of autonomous regulations that would create a legal framework for the application of new procurement models should be taken. Nonetheless, educating clients is absolutely vital to achieve a joined-up approach with greater understanding and communication between all parties in the construction process.