In view of an inquiry into the sustainable development of the construction industry as well as its obstacle factors, an evaluation index system has thus been constructed of the sustainable development of the construction industry based on DPSIR framework. By adopting the entropy weight TOPSIS method, an evaluation and analysis have been made of the sustainable development level of the construction industry in Shandong Province from 2012 to 2020, followed by an identification and diagnosis of the obstacle factors based on the obstacle degree model. The research shows that from 2012 to 2020, the sustainable development level of construction industry in Shandong Province continued to show an upward development trend, with the status level and impact level rising continuously for 9 years. Although there is a fluctuation in the driving force level, pressure level and response level, they all have attained at a medium or higher level of development. Currently, the main obstacle factors affecting the sustainable development of the construction industry in Shandong Province are the profit rate of output value, the proportion of loss-making enterprises in the construction industry, the growth rate of employees, the proportion of employees and the percentage of housing security costs in the financial expenditure.