The interest of the parties in construction industry is detached under the traditional contracting model.Non-cooperation,malignant competition and suits bring on high exchange cost,wasting of resources and higher risks.As a new contracting model,relational contract aggregates all parties' interest objective and circulates under a flexible agreement frame.It includes Partnering,Alliance,Long-term Contract and Joint-Venturing with their own characters and merits.This paper analyzed the obstacles of applying relational contract in practice in China and puts forward the corresponding countermeasures.