Rate analysis is an important aspect of construction projects as it helps in determining the cost of various items involved in the project. The purposes of rate analysis can be summarized as follows:

1. Determining the current rate per unit of an item at the locality:
Rate analysis helps in determining the prevailing market rates for various items such as materials, labor, equipment, etc. This information is crucial in estimating the overall cost of the project accurately. By analyzing the rates, the project team can understand the cost implications and make informed decisions during the planning and budgeting stages.

2. Examining the viability of rates offered by contractors:
Rate analysis allows for the comparison of rates offered by different contractors for the same item. This analysis helps in evaluating the reasonableness and competitiveness of the rates. It ensures that the rates quoted by the contractors are fair and reasonable, and not excessively high or low. By examining the viability of rates, the project team can select the most suitable contractor for the project.

3. Calculating the quantity of materials and labor strength required for project planning:
Rate analysis involves determining the quantities of materials, labor, and equipment required for the project. This analysis helps in estimating the overall project cost and planning the resources accordingly. By accurately calculating the quantities, the project team can ensure that the required materials and labor strength are available at the right time and in the right quantities, avoiding delays and cost overruns.

4. Fixing labor contract rates:
Rate analysis helps in fixing labor contract rates for different categories of labor involved in the project. It involves determining the wages, allowances, and other benefits to be provided to the laborers based on the prevailing market rates and government regulations. By fixing labor contract rates, the project team can ensure fair compensation for the laborers and maintain a harmonious working environment.

In conclusion, rate analysis serves multiple purposes in construction projects. It helps in determining the current rates, evaluating the viability of contractor rates, calculating the quantities required for project planning, and fixing labor contract rates. By conducting a comprehensive rate analysis, the project team can ensure accurate cost estimation, resource planning, and fair compensation for all stakeholders involved in the project.