The development of urban areas in Palestine is usually linked with the implementation of municipal road projects. The assessment of the life cycle cost for municipal roads is presented in this research. The paper aims to highlight the main factors and their impact on the cost overrun during the different phases of road projects, and therefore propose recommendations that aim at reducing the differences between the estimated and actual costs. A sample of sixty-three municipal road projects were inspected in the West Bank of Palestine with forty-seven of these experienced costs overrun. The research identifies the factors with the highest impact on cost overrun during the different phases of the municipal road projects that include planning and design, tendering, and implementation. The success of the projects in the minimization of cost overrun could be achieved by considering good and professional management and control practices, beginning from the planning and design phase to site handover, selecting qualified contractor in the implementation phase, and appointing a specialized monitoring team during supervision.