Construction workplaces often face unforeseen collision hazards due to a decline in auditory situational awareness among on-foot workers, leading to severe injuries and fatalities. Previous studies that used auditory signals to prevent collision hazards focused on employing a classical beamforming approach to determine equipment sounds’ Direction of Arrival (DOA). No existing frameworks implement a neural network-based approach for both equipment sound classification and localization. This paper presents an innovative framework for sound classification and localization using multichannel sound datasets artificially synthesized in a virtual three-dimensional space. The simulation synthesized 10,000 multi-channel datasets using just fourteen single sound source audiotapes. This training includes a two-staged convolutional recurrent neural network (CRNN), where the first stage learns multi-label sound event classes followed by the second stage to estimate their DOA. The proposed framework achieves a low average DOA error of 30 degrees and a high F-score of 0.98, demonstrating accurate localization and classification of equipment near workers’ positions on the site.