# 1. What is the purpose of rate analysis??

The purpose of rate analysis is more important in planning stage of every project. It give the idea about approximate cost according to specifications and construction methodology required for the project.

## Purpose of Rate analysis:

There are various purpose of rate analysis,

#### To find out actual cost per unit of the item:

Rate Analysis is important to find out unit rate of an item or the rate per unit of item. Rate per unit item is very essential to find out the approximate cost of project.

#### To determine the current rate of an item per unit at  the locality

Before purchasing and ordering the inventory, finding out current rate of item is important. availability of material, location, transportation expenses is also important. After concerned requirement and studies, the item would be finalized for project on basis on low cost per item.

#### To examine the viability of rates

The purpose of rate analysis is also to find out the viability of rates.

#### To calculate labour and equipment quantity required for  Project Planning.

Depending upon the rate analysis for particular work, human resources and machinery is calculated to complete the task within time. All the resources required are also depend on rate analysis and type of work. If the labour and equipment quantity increases then automatically cost for the construction will increases.

#### To fix up labor contract rates.

The purpose of rate analysis is also to fix up the labour contract rates. There are to many ways to pay labour depending upon work demand.

## Importance of Rate Analysis:

Rate analysis is very important especially at the stage of planning & design. By the process of rate analysis we can easily calculate the expected expenditure for the project and in this way we will clearly get the idea of finances for completion of entire project.

At the same time, rate analysis is also helpful to figure out the quality, quantity and specification for the materials, labours and machinery.

The rate analysis gives the clear idea about purchase and use of material, labours and equipment  including the process, method of construction for the finished product.

##### For example,

For brick masonry, the materials, labour, scaffolding, water for curing, mortar proportions and preparation etc is already calculated and we can plan activity according to that.

Again for same brickwork we requires materials is brick, mortar (cement, sand, water) and labour like mason, bhishti and helper is required to perform the activity.  And tools and plants need for same.

Water is required for curing.

So the final rate per cum for brickwork is calculated by the considering all the above factors.