A Research Dissertation submitted in partial fulfillment of the requirement for award of Degree of Masters of Science in Procurement and Supply Chain Management (MSc-PSCM) of the Mzumbe University.This study investigated the factors that hinder local contractors from winning huge road construction tenders. The study took place in Dar es Salaam, TANROADS headquarters and regional office Dar es Salaam, whereby questionnaires were distributed to total of 90 respondents from TANROADS officials and consultants. The study hypothesized that local contractors are at a disadvantaged position against foreign contractors over huge road construction projects in regard of: required technology, skills and knowledge, financial capacity and policy and legal jurisdictions. The study employed a descriptive research designed with a target population of 300 respondents. Sampling process through random and purposive means was employed and came up with 90 respondents. Data were collected using three methods namely questionnaire, interview and documentary review The study findings indicated that, most local contractors lose huge tenders because of low technological capacity, insufficient financial security, poor implementation policy and legal jurisdiction for and insufficient required knowledge and skills. The study concluded that local contactors need to enhance their ability, there are various difficulties facing local contractors in the road construction industry. It is our aspiration for local contractors to dominate road-building operations for the advantage of the country. This can be done if local contractors will decide to join forces and helping ach other in solving all the problems associated with them. This could, however, be accomplished through long-term and short-term approaches. This study has recommended that contractors should pay main attention to the TANROADS ability to pay for the job. Contractors should also create their reputation in the construction industry through the acquisition of technical skills and capacities. Contractors should not depend exclusively on their relationship with project stakeholders to acquire project.