Abstract: China's urbanization process is in the world's leading level, the influx of a large number of people to the city caused a huge traffic pressure to the city, in order to build an efficient urban transportation network, each city has increased the municipal road construction on the original basis. But in the municipal road construction, the project cost management is the key work, the cost management effect is directly related to the economic and social benefits of the project, in order to improve the cost management level, according to the characteristics of municipal road engineering, the construction of comprehensive cost index, better control of the project cost. Based on this, this paper aims at the principles, methods, index selection and other contents of the construction of comprehensive cost index of municipal road engineering, which has important guiding value for the cost management.