The process of 'unlearning' may prove, paradoxically, to be a critical factor in enabling successful learning behaviour in organisations. For this study a conceptual model of the relationship between unlearning and organisational learning was developed and arranged in a structural equation modelling (SEM) format. A survey was conducted of 112 construction industry participants in Australia to rate the significance of the identified factors. The results indicate a strong link between unlearning and performance improvement through organisational learning in the construction industry. The findings imply that if construction organisations actively practice unlearning strategies, they could be more capable of learning to enhance performance. This study contributes to the construction project management research by providing possible reasons leading to the organisations being incapable of learning. It is believed that the findings can provide valuable insights for management wishing to devise ways of enhancing a contracting organisation's performance.