The construction industry commonly faces price fluctuation which affects financial health of the companies and the overall project performance. Adopting effective price fluctuation response strategies is crucial to ensure competitiveness of the companies and success of construction projects. This study aims to assess the price fluctuation management practice focusing on the planning of response strategies in the context of Ethiopian construction industry. To achieve this, a questionnaire was used to collect the data and descriptive statistics was used in analyzing the data. The study result shows that application of the common price fluctuation response strategies; provision of price adjustment clause, contingency provision, stockpiling materials and effective communication, is unsatisfactory in Ethiopian construction companies. Impact of such poor practice on the competitiveness and performance of the companies is multifaceted. Hence, the findings of this study emphasize on the need to appropriately plan price fluctuation response strategies to reduce impact of the price fluctuation.