Purposes of rate analysis are

a. To determine current rate per unit of an item at locality

b. To examine viability of rates offered by contractors

c. To calculate quantity of materials and labour strength required for project planning

d. To fix labour contract rates 

Explanation:

Purpose of Analysis of rates: 

• To work out the actual cost per unit of the items at the locality.
• To examine the viability of rates offered by contractors
• To calculate the number of materials and labour strength required for project planning
• To fix labour contract rates
• To work out the economical use of materials and processes in completing the particulars item.
• To work out the cost of extra items which are not provided in the contract bond, but are to be done as per the directions of the department.
• To revise the schedule of rates due to an increase in the cost of material and labour or due to a change in technique. 

Additional Information

Cost of labour -types of labour, standard schedule of rates: 

• The labour can be classified into 1) Skilled – 1st class 2) Skilled – 2d Class 3) Unskilled
• The labour charges can be obtained from the standard schedule of rates 30% of the skilled labour provided in the data may be taken as Ist class, remaining 70% as II class.
• The rates of materials for Government works are fixed by the superintendent Engineer for his circle every year and approved by the Board of Chief Engineers. These rates are incorporated in the standard schedule of rates.