Abstract: Money is the prime importance in case of road projects as huge amount of funds (in trillions) is involved in such projects. The construction industry in India suffers from cost overruns. Various parameters affecting the road project cost. These parameters affect the cost in vast manner so they are responsible for deviation of cost of road projects. Regression analysis is simple technique for determining the influence of these factors on cost of road projects. Identifying and evaluating the factors that influence cost are critical issues faced by construction managers. It is therefore important that factors affecting cost of the road projects are well identified so that efforts can be made to improve the situation. So purpose of this work is, to study the parameters that affect the cost of the road project and to suggest regression analysis technique for evaluating these parameters from the point of view of judging their influence on cost.