Current instruction methods of teaching construction engineering and management rely heavily on traditional pedagogical techniques such as in-class instruction and coursework in core subjects. Such methods often fail to prepare students to effectively handle the complexities of actual projects as they provide limited opportunities for hands-on experience. For example, creating an effective relationship and intuitive mapping between the real world and the abstract knowledge gained through tools such as CAD and BIM is still a challenge. This paper presents the initial results of a project aimed to transform the current learning process in construction by designing and implementing an interactive augmented reality (AR) learning tool to help students develop a comprehensive understanding of construction equipment, processes, and operational safety. A descriptive account of how this evolving technology can be used to create a transformative learning and educational environment is provided, along with a discussion of several design and implementation challenges.