Research highlights that architectural design is a social phenomenon that is underpinned by critical analysis of design precedents and the social interaction between designers including negotiation, collaboration and communication. CAAD systems are continuously developing as essential design tools in formulating and developing ideas. Researchers such as (Rosenman, Gero and Oxman 1992) have suggested suggest that knowledge based systems can be integrated with CAAD systems to provide design knowledge that would enable recalling design precedents that maybe linked to the design constraints. Currently CAAD systems are user centric being focused on architects rather than the end product. The systems provide limited assistance in the production of innovative design. Furthermore, the attention of the designers of knowledge based systems is providing a repository rather than a system that is capable to initiate innovation. Most of the CAAD systems have web communication tools that enable designers to communicate their design ideas with colleagues and partners in business. However, none of these systems have the capability to capture useful knowledge from the design negotiations. Students of the third to fifth year at College of Architecture, University of Dammam were surveyed and interviewed to find out how far design tools, communications and resources would impact the production of innovative design projects. The survey results show that knowledge extracted from design negotiations would impact the innovative design outcome. It highlights also that present design precedents are not very helpful and design negotiations between students, tutors and other students are not documented thus fully incorporated into the design scheme. The paper argues that the future CAAD systems should be capable to recognize innovative design precedents, and incorporate knowledge that is resulted from design negotiations. This would help students to gain a critical mass of knowledge that would underpin informed design decisions.