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In recent years circular economy has been widely discussed throughout the world as a solution to the problem of resources efficiency and also environmental problems, especially regarding waste. The construction industry is one of the largest waste-producing industries, even 30% of waste on landfills is construction waste. The application of circular economy in the construction industry has many interrelated and dynamic variables that change over time. This study aims to identify the variable of circular economy and analyze the pattern of its relationship using system dynamics method. The variables were obtained from in-depth literature review and interviews, including management performance, low-waste technology, and behavior. Then from these variables a causal loop diagram is created. This diagram describes the relationship between variables of circular economy. For model validation, a multi-storey building project in Surabaya is used as a case study. This study produces a model that can be used to estimate the volume of construction waste of waste with an accuracy of 86.12%. Scenario simulation results show that worker variables can reduce the volume of waste construction up to 7.91%, higher than other variables.