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Construction industry development transformation is one of the most important issues in China. Along with the improving construction industry development transformation, problems have increased and need to be solved. For effectively improving the construction industry development transformation, this paper studied the factors influencing mechanism of construction industry development transformation. Construction industry development transformation is influenced by many factors. Firstly, 10 significant influential factors were extracted and 25 observable variables were used. Secondly, Structural Equation Modeling (SEM) was used to analyze the relationship between construction industry development transformation and its influential factors. Then, SEM hypothesis based on the research on the factors influencing construction development transformation was constructed. Through empirical results and its analysis, the role of the basic production factors for construction cannot be ignored. The internal industry directly influenced the transformation in the construction. The external industry indirectly influenced construction transformation. And industrial demands stimulated the basic influencing factors

Factors Influencing Mechanism of Construction Development Transformation in China Based on SEM