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In order to determine the rate of a particular item, the factors affecting the rate of that item are studied carefully and then finally a rate is decided for that item. This process of determining the rates of an item is termed as analysis of rates or rate analysis. The rate of particular item of work depends on the following: 1. Specifications of works and material about their quality, proportion and constructional operation method. 2. Quantity of materials and their costs. 3. Cost of labours and their wages. 4. Location of site of work and the distances from source and conveyance charges. 5. Overhead and establishment charges 6. Profit Cost of materials at source and at site of construction: The costs of materials are taken as delivered at site inclusive of the transport local taxes and other charges.![](jpg/rate-analysis-building-construction7aa2.jpg)