Situational awareness concept has been long used in aviation and medical fields to understand and improve an individual's ability to interact and comprehend complex dynamic environments. This study attempts to empirically test situational awareness model proposed by Endsley within construction domain. Specifically, we will test how different levels of situational awareness interact with each other and how they interact with decisions. To achieve this goal, a controlled experiment was designed and conducted where the investigators (1) induced positive, negative, or neutral emotions in 66 subjects; (2) exposed participants to construction hazards within a high fidelity virtual environment; and (3) measured participant's hazard recognition skills, their understanding of those hazards, severity assessment, and subsequent decisions. The results revealed there is moderate positive correlation among each level of situational awareness. Linear mixed-effects model analysis revealed that the three levels of SA positively predicted each other. Also, the analysis revealed that there were differences in the degree of influence from each level of situational awareness on the final decision of an individual.