The construction industry has been characterized as a slow to change sector where knowledge is underexploited. The ability to learn from past errors is crucial for companies working in a project-based environment, such as the construction industry. This thesis explores how factors relating to the organization and management of craftsmen can contribute to learning and innovation in construction companies. A qualitative interview study in two selected construction projects in a construction company in Oslo was carried out. Interviews with informants and participant observation were done in the preparatory phase. Subsequently, in-depth interviews with six carpenters were conducted. Additionally, a thorough literature review has been important for the development of the research question and analysis of the data. The data analysis indicates that observational learning is a useful method of explaining how individual learning happens in construction work. Verbal communication and the ability to ask clarifying questions is also important for learning new skills and for avoiding errors in the building process. Organizational learning theory indicates that codification of knowledge is important for cumulative learning and innovation in project-based organizations. My findings point to that the use of codified knowledge might be difficult to implement at floor level, as learning often happens informally, and knowledge is often tacit. The results of this study indicate that piece work arrangements may be an efficient method of increasing motivation and critical reflection. Maintaining a high level of skills throughout work teams may also increase intrinsic motivation. It is suggested that the association of these factors is investigated in future studies.