Project management is regarded as one of the most important tools that have been used to maximize the probability of having a successful project. Nevertheless, most projects fail to achieve their goals, and this is to the detriment of the organizational competitive advantage. In this dilemma, innovation practices have become the engine through which methods, relationships, and processes of project management can be enhanced to increase project successfulness and competitive advantage. The purpose of this study is to investigate the innovation practices in the construction project management process in the Palestinian construction sector. A mixed methods methodology has been used in this research using semi-structured interviews with key project managers and questionnaire deployment. A total of 365 questionnaires were conducted in the consulting and contracting firms that operate in the construction projects sector in Palestine, with an overall response rate of 52.4.%, allowing the testing of a number of theoretical hypotheses. The analysis of the results showed that there is a statistically significant relationship at a significant level (α ≤ 0.05) between five innovation practices: (1) Strategic Management, (2) Internal Innovative Working Environment, (3) External Innovative Working Environment, (4) Stakeholders Management, and (5) Project Management. The value of this research is the identification of the main innovative practices being used in the construction projects in the context of a developing country like Palestine, and the extent to which these practices are being applied.