Rising inflation rates have influenced the profitability of many ongoing projects in many economies in 2022. In addition, supply shortages due to the Covid19 pandemic have delayed many projects. Accurate estimation of project time and costs for a project bid in such uncertainties minimizes the risks of financial losses incurred in an awarded project. Conversely, the failure to anticipate the changes in prices and supplies in estimation models decreases the profitability and continuance of awarded projects, leading to some ripple effects in society. This paper examines the stochastic model to include inflation and supply shortage in estimation models. It suggests a solution for project estimators to estimate project costs and time more accurately, given the risks of rising inflation and supply shortage.