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Innovation maturity has gathered great importance in recent years. Innovation has become a major driving force for business growth and success. However, many challenges still remain in both theory and practice, which demand improved managerial approach. This research focuses on developing the concept of innovation readiness levels, an explicit model for managing the process of incremental innovation and to provide contractors and construction business to improve an innovation program. The research reported here set out to examine how technological, market and other aspects of innovation readiness can be depicted over the lifecycle and to provide the Innovation Readiness Levels (IRL) framework. Practical issues and challenges were discussed with all companies.