In Malaysia, construction sector plays a significant and important role in the country's economy. One of the most important and critical phase of a construction project is tendering and procurement phase. A paper-based traditional method of undertaking procurement phase is complicated, costly and time consuming. E-Tendering is a fully digitalized process which increases the efficiency and productivity during the tendering phase. This study evaluated the challenges and benefits of implementing E-Tendering or E-Procurement in Malaysian Construction Industry