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The aim of this paper is to investigate the relationship‐based factors that affect performance of general building projects in China. Eight performance metrics that may be used to measure the success level of construction projects are defined and categorized into two groups namely ‘hard’ and ‘soft’ performance. Eight indicators of risks inherent in relationships and seven indicators of tools expected to facilitate relationship building that may affect project success are identified. Data of different projects were collected in China via a self‐administered postal survey. By using structural equation modelling techniques, a structural model is developed to help explain the relationship among different variables. It has been found that relational risk has negative influence on project performance. It is recommended that firms in the Chinese construction industry manage the relationship‐based factors that are significant in the …