Abstract The construction industry has been suffering from modest productivity development in recent decades. To address the recognized problems, collaborative delivery methods are replacing traditional project delivery models, especially in large and complex projects. The aim of this research is to describe the production capability creation (PCC) process as a solution for planning the production phase. The PCC process should be implemented parallel to the design phase and owned by the production. A qualitative and inductive approach, based primarily on case company interviews, is applied to identify the twelve most important challenges for preplanning in the design phase from a group of different types of stakeholders in construction projects. Based on these challenges, the main areas of PCC are structured, solving the depicted production challenges, enabling a wasteless and cost-efficient production phase to avoid unnecessary delays and problems. Parallel implementation of PCC and design processes of the building naturally also improve the result of the design itself. With PCC, contractors can recognize the need for improvement in their processes but, more importantly, can directly contribute to the design of the building. Described PCC process solves major challenges emerging from the case company interviews. Earlier literature on capability creation is scarce, and for the construction industry it is even more narrow. The PCC process presented in this research enables significant improvement in efficiency and effectiveness, and the elimination of waste in the construction industry.