This paper analyses the development ,reform and issues encountered in th e construction industry in China.In order to solve the problems ,maintain the development and deepen the reform of the industry,it is necessary to change the mechanism of the construction market and organiz ational style of construction proje cts na-tionwide.Project management model,which is a key factor to the clients a nd project success,determines the overall framework of project manage ment,responsibilities and risk str ucture of participants during the bu ilding process.Different PMMs have different relationships amongst the parti cipants and risk structure.A new market mechanism with the adoption of international practice can provide a driv e to accelerate the restructure of China' s construction industry.This paper a lso discusses the development and ev olution of PMM,the relationship between different PMMs and the function of PM M in the market reform and internatio nalization of the Chinese construction industry.