This paper seeks to discover the implementation challenges that are faced by the government departments and contractors as they implement the government funded projects in the Miri division of Sarawak. Generally, it relates to some of the literature reviews which highlighted some similar problems that researchers have identified with respect to project implementation in Malaysia or overseas. In this context, the possible weaknesses that are inherent in the procurement and quality management from the perspective of the buyers and suppliers in the projects are of interest in this study. More specifically this study emphasizes on finding out the project management flaws at the various projects implementation departments and contractors levels which are significantly disrupting the overall success of the projects. It highlights the importance of proper project management procedure and processes, particularly dwelling on monitoring and reporting on the progress of the projects.

The finding of this research shows that there is a lack of efficiency in the implementation of government funded projects in terms of quality, procurement and project management system. The challenges faced are on technical skill, co-ordination of labour at site, transportation cost, completion time, inefficient project management and the lack of appropriate skills and knowledge in the implementation of government funded projects in Miri division.