The building construction industry facing the major problem is that building contracts are completed at sums much higher than estimated cost, hence the need to develop predictive cost model that capture factors affecting project cost using principal components regression. The cost prediction model is created with the help of SPSS software, the factors influencing the project cost are already determined with the help of questionnaire survey. Ten major factors are selected for the cost prediction modeling.

Keywords : overrun, Model, Prediction, Principal components.