The design and construction contract model has been used in some fields and projects in China in recent years, however, some problems occur in the implementation of the contract model. The problems in the implementation of the design and construction contract in China are presented, with the case of Xiangjiang rivercrossing tunnel at Nanhu road in Changsha as an example. Main problems, such as separation between the design and the construction, big discrepancy in works quantity and improper responsibility system, are analyzed. Countermeasures, including integration between the design and the construction, optimization of the design and construction proposal and perfecting relevant regulations and rules, are proposed.