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Efficient project execution is a key business objective in many domains and particularly so for capital projects in the construction industry. Each construction project is unique in terms of how specialist professionals manage knowledge. Construction projects generate a large body of knowledge for sharing and reuse within the construction organization and across projects. In addition, projects provide opportunities for new knowledge to emerge in a cross‐functional, team‐work context. There are many factors in the construction industry that can influence the execution of construction projects, both positively and negatively, and so it is increasingly important to anticipate risks and implement the best solutions. Therefore, the preparation of the project before execution is crucial for any construction firm. This paper sets out to improve project preparation for execution in large construction firms. Thus, the purpose of this paper is to look at ways by which construction projects are prepared, based on the empirical data collected from five case studies. It also seeks to provide and discuss a model of a knowledge management (KM) system aimed at improving the preparation of large construction projects.

The prerequisite for developing a KM solution in which project knowledge can be used to enable and improve project‐preparation processes is identifying the sources and nature of knowledge and its flow from a particular source to a specific destination. In order to understand the source flow of project knowledge, a qualitative case study approach was undertaken whereby various actors, knowledge retention practices, access and retrieval of knowledge, and issues in sharing knowledge were identified and analyzed. Case study research is one of the most widely used research designs in qualitative research. The methodology looks at five large construction projects, but not typical projects, which nonetheless provide useful insights for developing KM solutions aimed at improving project preparation.

This paper discusses how to improve project preparation in construction projects with KM and presents a KM model aimed at improving project preparation.

Construction firms need to be aware of the advantages of KM initiatives and practices in project organizations. KM requires an organisation environment that allows workers to create, capture, share, and leverage knowledge to improve project preparation.

This paper presents a new framework for managing project knowledge needed for undertaking project preparation. The knowledge map and the content of the knowledge base may be changed to fit the organization to be applied.