The trend of cost overrun in highway projects is one of the major challenge faced by the government since time immemorial. There has been many factors which results in providing a positive as well as negative impact to this phenomenon. The purpose of this paper is to determine the causal causes of cost escalation of highway projects in Kerala and in turn develop Regression models and neural network models for analysis of cost overrun for the future projects.

Keywords : Cost overrun, Regression, Artificial Neural Network (ANN)