According to the widespread problems of government-invested projects currently, this paper put forward the necessity of objective and overall performance evaluation. Given the example of cusp catastrophe, it analyzes the mechanism of multi-objective evaluation by applying catastrophe theory, establishes multi-hierarchy indicator system of engineering projects by adopting catastrophe series method. The paper also introduced this method to the example of inland waterway projects. The outputs are well in line with the facts. The indicator system is established based on the inner logical relations between catastrophe model internal mechanism and performance objectives. It avoids the subjective influence of weights design. The calculation is quite convenient and well applied in government-invested projects.
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