Abstract: The purpose of this research is to analyze the interaction between trust and formal control from a dynamic perspective. Based on the existing literature, the paper proposed a spiral development model of owners trust, formal control, contractors trust and reciprocation from the angle of trust reciprocity. The model tested by questionnaire survey, vis-à-vis interview, structural equation modeling and a case study in China. The empirical results suggested that the development between owners trust, formal control, contractors trust and reciprocation takes on a form of helix. The findings provide a new view and new way of thinking for construction firms to implement Customer Relationship Management (CRM).