A three-dimensional finite element method is presented to analyze the settlement process of buildings with pile foundations due to negative skin friction resulting from the consolidation by dewatering. Three cases are analyzed here by this method. These cases have the same characteristic parameters of soil, pile and superstructure except for the end-bearing and settlement (Npu-Wpu curve). The effects of the subgrade reaction coefficient of pile tip upon the downdrag forces and the differential settlements of buildings are discussed. To conclude the analysis, it is proposed that we should adopt the friction piles in the area where the ground subsidence has been continuously observed.