As knowledge becomes a source of competitive advantage, knowledge-management activities have become critical for success. Construction firms can effectively use their organizational memory to enhance their decision-making abilities. A framework was constructed to model the organizational memory formation process in construction companies. Based on this model, an interview study was conducted to investigate both the organizational memory formation and the role of organizational memory in strategic decision-making within the construction industry. Eight Turkish contractors were assessed. The results suggest that construction companies make use of several knowledge sources and mechanisms to acquire knowledge. Although construction companies are successful at the collection and storage of knowledge, they are weak in the exploitation of organizational memory, especially at the strategic decision-making stage. In addition, they cannot increase their organizational teaming competence due to some company- and industry-specific barriers.