Two different approaches for modelling soil non‐linearity (hardening plasticity and hypoplasticity) are compared with reference to the analysis of soil–structure interaction in an excavation in dense dry sand, supported by a propped diaphragm wall. The analysis focuses on the prediction of wall and soil movements. A commercial FE code has been used for the elastoplastic analyses, in order to assess the performance of a readily available design tool in current geotechnical engineering practice as compared to the predictions of a more advanced research tool. Although obtained for an idealized scheme, the results allow a number of more general conclusions to be drawn on the influence of the constitutive assumptions. Copyright © 2000 John Wiley & Sons, Ltd.