Present study is on challenges faced by the construction industries in proposal stage and the techniques used to overcome the difficulties faced in planning and construction stages. Financial success of a project depends on the optimal usage of owner’s fund. Many methods are proposed by the researchers for prediction of problems in estimating contingency. An attempt is being made to propose the optimal contingency for estimate prepared on construction project so that the estimated cost will be reliable as compared to other techniques used in field. This will result in obtaining better outputs in estimation and costing. The factors affecting the construction project at the proposal stage are analysed and higher weightage is given to variable which has higher influence on the project cost. This prediction technique will act as a gateway for the construction companies to acquire the project since the accuracy of estimation is improved.
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