Due to rapid growth of world’s population and urbanization in the world construction is becoming complex, and because of its this nature, effective communication is essential for ensuring successful outcomes in construction projects. However, ineffective communication can lead to project delays, increased costs, and disputes that may result in complicated litigation and arbitration. This literature review aims to examine the impact of ineffective communication in construction projects in Sabah, Malaysia. The review focuses on the role of the Construction Industry Development Board (CIDB) in promoting effective communication, the use of the Construction Industry Payment and Adjudication Act (CIPAA) to resolve disputes, and the effectiveness of the PAM Contract with Quantities in improving communication and reducing disputes in construction projects. The review analyses relevant literature on the topic, including studies that have investigated communication challenges in construction projects in, Malaysia. The findings indicate that ineffective communication is a prevalent issue in construction industry of Malaysia and can be caused by factors such as language barriers, cultural differences, and poor coordination among project stakeholders. Based on the literature review, recommendations are provided for improving communication in construction projects in Sabah, including the use of clear communication channels, regular project meetings, and effective project management strategies. The literature review highlights the significance of effective communication in construction projects and provides valuable insights for stakeholders involved in construction projects in the region.