To promote the undercutting method to the construction of subway stations in soft stratum, the pipe-roofing method was firstly employed in Shanghai with the Guiqiao Road station of the Metro Line 14 as a trial engineering. Based on this project, a sophisticated constitutive model of Shanghai soft soil was implemented into the numerical simulation of the tunneling construction. Soil mechanical properties including displacement, stress and strain during the tunnel construction were analyzed. The main conclusions are as follows: (1) The stratum mainly settled during excavation. The position with the maximum deformation basically remained in the center of the station. The final ground deformation tended to distribute symmetrically. (2) After excavation, the distribution of the shear stress on the cross section presented symmetrical, and the stress tended to concentrate at the left and right shoulders of excavated soil. (3) During excavation, the volumetric strain contours around the excavated soil was symmetrical, and the volumetric strain above the excavation was the largest, indicating that the risk of collapse was very high above the excavated soil. (4) The simulation results using the Shanghai soft soil model were closer to the measured values because the parameters of this model can better reflect the characteristics of overconsolidation, structure and anisotropy of the Shanghai soft soil.