**FORM      10-K**

**ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES **
**EXCHANGE      ACT OF 1934.**

**OR**

**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES **
**EXCHANGE      ACT OF 1934.**

*www.bmhc.com*

**Building      Materials Holding Corporation**

| **Delaware**                                           |   | **91-1834269**                                                  |
|--------------------------------------------------------|--------|-----------------------------------------------------------------|
| (State                of                incorporation) |   | (IRS                Employer                Identification No.) |

**Four      Embarcadero Center, Suite 3250, San Francisco, CA 94111**

**(415)      627-9100**

**None      **

**Common      Stock ($.001 par value)**

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| Large                accelerated filer þ | Accelerated                filer  ̈ | Non-accelerated                filer  ̈ |
|-----------------------------------------------|-----------------------------------------|---------------------------------------------|

**Documents      Incorporated by Reference**

| (1) | Portions                of                the Proxy Statement to be delivered to shareholders in connection                with the                Annual Meeting of Shareholders on May 2, 2006, are incorporated by                reference in Part III of this Form                10-K. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**FORM      10-K**

INDEX

| **PART                I**   |                    |                                                                                                                                             |
|-----------------------------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                    |                                                                                                                                             |   |
|                        | Item                1.  | Business                                                                                                                                         | 2 |
|                        | Item                1A. | Risk                Factors                                                                                                                      | 12 |
|                        | Item                1B. | Unresolved                Staff Comments                                                                                                         | 15 |
|                        | Item                2.  | Properties                                                                                                                                       | 16 |
|                        | Item                3.  | Legal                Proceedings                                                                                                                 | 16 |
|                        | Item                4.  | Submission                of Matters to a Vote of Security                Holders                                                                | 16 |
|                        |                    |                                                                                                                                             |   |
|                        |                    |                                                                                                                                             |   |
| **PART                II**  |                    |                                                                                                                                             |
|                        |                    |                                                                                                                                             |   |
|                        | Item                5.  | Market                for Registrant’s Common Equity, Related Stockholder                Matters and Issuer Purchases of Equity Securities | 17 |
|                        | Item                6.  | Selected                Financial Data                                                                                                           | 18 |
|                        | Item                7.  | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations                        | 19 |
|                        | Item                7A. | Quantitative                and Qualitative Disclosures About Market                Risk                                                         | 35 |
|                        | Item                8.  | Financial                Statements and Supplementary                Data                                                                        | 36 |
|                        | Item                9.  | Changes                in and Disagreements With Accountants on Accounting                and Financial Disclosure                               | 67 |
|                        | Item                9A. | Controls                and Procedures                                                                                                           | 67 |
|                        | Item                9B. | Other                Information                                                                                                                 | 67 |
|                        |                    |                                                                                                                                             |   |
|                        |                    |                                                                                                                                             |   |
| **PART                III** |                    |                                                                                                                                             |
|                        |                    |                                                                                                                                             |   |
|                        | Item                10. | Directors                and Executive Officers of the                Registrant                                                                 | 68 |
|                        | Item                11. | Executive                Compensation                                                                                                            | 72 |
|                        | Item                12. | Security                Ownership of Certain Beneficial Owners and                Management and Related Stockholder Matters                     | 73 |
|                        | Item                13. | Certain                Relationships and Related                Transactions                                                                     | 73 |
|                        | Item                14. | Principal                Accounting Fees and Services                                                                                            | 73 |
|                        |                    |                                                                                                                                             |   |
|                        |                    |                                                                                                                                             |   |
| **PART                IV**  |                    |                                                                                                                                             |
|                        |                    |                                                                                                                                             |   |
|                        | Item                15. | Exhibits                and Financial Statement                Schedules                                                                         | 74 |
|                        |                    | Signatures                                                                                                                                       | 81 |

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INDEX

**Introduction      - Risk Factors and Forward-Looking Statements**

*There      are a      number of business risks and uncertainties that affect our operations and      therefore could cause future results to differ from past financial performance      or expected results and ultimately affect the trading price of our common      shares.  Information regarding these risks and uncertainties is      contained in Item 1A of this Form 10-K under the caption Risk      Factors.*

*Certain      statements in this Form 10-K including those related to expectations about      homebuilding activity in our markets, demographic trends supporting homebuilding      and anticipated sales and operating income are forward-looking statements within      the meaning of the Private Securities Litigation Reform Act of      1995.  Statements that are not historical or current facts, including      statements about our expectations, anticipated financial results and future      business prospects are forward-looking statements.  While these      statements represent our current judgment on what the future may hold and we      believe these judgments are reasonable, these statements involve risks and      uncertainties that are important factors that could cause our actual results      to      differ materially from those in forward-looking statements.  These      factors include, but are not limited to the risks and uncertainties cited in      Item 1A of this Form 10-K under the caption Risk Factors.  Undue      reliance should not be placed on such forward-looking statements, as such      statements speak only as of the date of the filing of our 2005 Annual Report      on      Form 10-K.  We undertake no obligation to update forward-looking      statements.*

**PART      I**

**ITEM      1.  Business**

**General      Overview **

**BMC      Construction**
**BMC      West**

**Industry      Overview**

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INDEX

**BMC      Construction**

**BMC      West**

**Acquisition      Strategy**

**BMC      Construction**

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INDEX

**2005**

| ·   | framing                services in San Diego, California                (October) |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | concrete                services in Las Vegas, Nevada and concrete and plumbing services                in                southern California (September) |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | additional                20% interest in our existing business providing foundation and shell                construction services in Florida (20% August 2005 and 60% January                2003) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 51%                interest                in concrete services in Arizona                (July) |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | 73%                interest                in plumbing services in Phoenix and Tucson, Arizona (60% April and                13%                July) |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | stucco                services in Las Vegas, Nevada                (June) |
|--------------------|---------------------------------------------------------------------------|

| ·   | 51%                interest                in framing services in Chicago, Illinois                (January) |
|--------------------|--------------------------------------------------------------------------------------------------------------|

**2004**

| ·   | remaining                49%                interest in our existing framing services business in northern California                (49% July 2004 and 51% July 2002) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2003**

| ·   | 67.33%                interest in framing services in Delaware, Maryland and Virginia                (October) |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | 60%                interest                in foundation and shell construction services in Florida                (January) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

**BMC      West**

|                                 |   | **2005** |    | 2004   |   | 2003 |   |
|--------------------------------------|--------|----------|---------|--------|--------|------|--------|
| Construction                Services |   |     | **54**  | **%**  |   | 43   | %      |   | 35 | % |
| Building                Products     |   |     | **46**  |   |   | 57   |   |   | 65 |   |
|                                 |   |     | **100** | **%**  |   | 100  | %      |   | 100 | % |

**Our      Customers**

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INDEX

**BMC      Construction**

| ·   | reputation                for providing quality construction services |
|--------------------|-----------------------------------------------------------------------|

| ·   | multiple                construction trade offerings |
|--------------------|------------------------------------------------------|

| ·   | timely                completion of contracts |
|--------------------|-----------------------------------------------|

| ·   | competitive                pricing |
|--------------------|------------------------------------|

**BMC      West**

| ·   | quality                and                availability of products |
|--------------------|--------------------------------------------------------------------|

| ·   | dependability,                scope and quality of services |
|--------------------|-------------------------------------------------------------|

| ·   | reliable                delivery and production schedules |
|--------------------|-----------------------------------------------------------|

| ·   | competitive                pricing |
|--------------------|------------------------------------|

| ·   | availability                of trade credit |
|--------------------|---------------------------------------------|

**Focus      on Service**

**Competition**

**BMC      Construction**

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INDEX

**BMC      West**

**Sales      and Marketing**

**BMC      Construction **

**BMC      West**

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INDEX

**Business      Segments**

|                                                   | **2005**      |          | 2004                                                                                                              |                                                                                  | 2003                                                                                                                                              |
|--------------------------------------------------------|---------------|---------------|-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| **BMC                Construction**                    |          |          |                                                                                                              |                                                                                  |                                                                                                                                              |
|    Construction                services | **$**         | **1,358,333** |                                                                                                              | $                                                                                     | 744,932                                                                                                                                           |   | $ | 408,167 |
|    Building                products     | **35,553**    |          |                   8,769 |                                                                                  |                        ― |
|                                                   | **$**         | **1,393,886** |                                                                                                              | $               | 753,701                                                                                                                                           |   | $               | 408,167 |
| **BMC                West**                            |          |          |                                                                                                              |                                                                                  |                                                                                                                                              |
|    Construction                services | **$**         | **228,176**   |                                                                                                              | $                                                                                     | 159,430                                                                                                                                           |   | $ | 89,885 |
|    Building                products     | **1,290,098** |          |            1,177,894                                       |                                                                                  |               917,019                                                       |
|                                                   | **$**         | **1,518,274** |                                                                                                              | $                                   |  1,337,324                                                                                                                                   |   | $            | 1,006,904 |
|                                                   |          |          |                                                                                                              |                                                                                  |                                                                                                                                              |
| **      ****Total**      | **$**         | **2,912,160** |                                                                                                              | $                                   |  2,091,025                                                                                                                                   |   | $            | 1,415,071 |

|                                                    |   | Sales  |          | Income(1)(Loss)BeforeTaxes                  and |   | Equityin                  Net                  Income |   | Depreciation      |          |               |   |                  |   |
|---------------------------------------------------------|--------|--------|---------------|-------------------------------------------------|--------|-------------------------------------------------------|--------|-------------------|---------------|--------------------|--------|-----------------------|--------|
|                                                    |   | Total  |          | Inter-Segment                              |   | Trade                                                 |   | MinorityInterests |          | ofAffiliates  |   | andAmortization  |   | Capital(2)Expenditures |   | Assets |   |
| **Year                  Ended December 31, 2005**  |   |   |          |                                            |   |                                                  |   |              |          |               |   |                  |   |
| BMC                  Construction                       |   | **$**  | **1,395,182** |                                            | **$**  | **(1,296**                                            | **)**  | **$**             | **1,393,886** |               | **$**  | **160,957**           |   | **$** | **―** |   | **$** | **12,375** |   | **$** | **62,611** |   | **$** | **611,067** |   |
| BMC                  West                               |   |   | **1,519,903** |                                            |   | **(1,629**                                            | **)**  |              | **1,518,274** |               |   | **151,030**           |   |   | **―** |   |   | **14,988** |   |   | **17,335** |   |   | **447,619** |   |
| Corporate                                               |   |   | **―**   |                                            |   | **―**                                           |   |              | **―**   |               |   | **(72,631**           | **)**  |   | **―** |   |   | **704** |   |   | **―** |   |   | **91,839** |   |
|                                                    |   | **$**  | **2,915,085** |                                            | **$**  | **(2,925**                                            | **)**  | **$**             | **2,912,160** |               |   | **239,356**           |   | **$** | **―** |   | **$** | **28,067** |   | **$** | **79,946** |   | **$** | **1,150,525** |   |
| Interest                  Expense                       |   |   |          |                                            |   |                                                  |   |              |          |               |   | **14,420**            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |          |                                            |   |                                                  |   |              |          |               | **$**  | **224,936**           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |          |                                            |   |                                                  |   |              |          |               |   |                  |   |   |   |   |   |   |   |   |   |
| **Year                  Ended December 31, 2004**       |   |   |          |                                            |   |                                                  |   |              |          |               |   |                  |   |   |   |   |   |   |   |
| BMC                  Construction                       |   | $      | 753,956       |                                            | $      | (255                                                  | )      | $                 | 753,701       |               | $      | 59,689                |   | $ | ― |   | $ | 8,216 |   | $ | 14,382 |   | $ | 268,498 |   |
| BMC                  West                               |   |   | 1,338,470     |                                            |   | (1,146                                                | )      |              | 1,337,324     |               |   | 96,083                |   |   | ― |   |   | 14,599 |   |   | 17,036 |   |   | 409,160 |   |
| Corporate                                               |   |   | ―       |                                            |   | ―                                               |   |              | ―       |               |   | (47,664               | )      |   | ― |   |   | 497 |   |   | ― |   |   | 65,386 |   |
|                                                    |   | $      | 2,092,426     |                                            | $      | (1,401                                                | )      | $                 | 2,091,025     |               |   | 108,108               |   | $ | ― |   | $ | 23,312 |   | $ | 31,418 |   | $ | 743,044 |   |
| Interest                  Expense                       |   |   |          |                                            |   |                                                  |   |              |          |               |   | 13,560                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |          |                                            |   |                                                  |   |              |          |               | $      | 94,548                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |          |                                            |   |                                                  |   |              |          |               |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Year                  Ended December 31, 2003**       |   |   |          |                                            |   |                                                  |   |              |          |               |   |                  |   |   |   |   |   |   |   |
| BMC                  Construction                       |   | $      | 408,929       |                                            | $      | (762                                                  | )      | $                 | 408,167       |               | $      | 18,954                |   | $ | 1,431 |   | $ | 4,410 |   | $ | 5,555 |   | $ | 187,479 |   |
| BMC                  West                               |   |   | 1,007,373     |                                            |   | (469                                                  | )      |              | 1,006,904     |               |   | 54,826                |   |   | ― |   |   | 15,315 |   |   | 12,121 |   |   | 390,764 |   |
| Corporate                                               |   |   | ―       |                                            |   | ―                                               |   |              | ―       |               |   | (33,351               | )      |   | ― |   |   | 1,060 |   |   | ― |   |   | 25,956 |   |
|                                                    |   | $      | 1,416,302     |                                            | $      | (1,231                                                | )      | $                 | 1,415,071     |               |   | 40,429                |   | $ | 1,431 |   | $ | 20,785 |   | $ | 17,676 |   | $ | 604,199 |   |
| Interest                  Expense                       |   |   |          |                                            |   |                                                  |   |              |          |               |   | 9,279                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |          |                                            |   |                                                  |   |              |          |               | $      | 31,150                |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | In                2005,                impairments of $1.3 million were recognized for goodwill and certain                customer relationships for BMC Construction.  During 2004,                impairments of $1.3 million for the carrying amount of certain properties                held for sale and $1.0 million in the carrying amount of goodwill                resulting from a change in business strategy were recognized for                BMC                West.  As a result of changes in a specific market, an                impairment of $0.8 million in the carrying amount of certain customer                relationships was recognized for BMC Construction in                2003. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Property                and                equipment from acquisitions are included as capital                expenditures. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

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INDEX

**Operating      Strategy**

**Purchasing**

**Management      Information Systems**

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INDEX

**Safety      and Risk Management**

**Employees**

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INDEX

**Executive      Officers**

|  **Name**                                        |  **Age** |  **Position                and Business Experience**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------------------------------------------------------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Robert                E.                Mellor        | 62            | Chairman                of the Board, President and Chief Executive OfficerMr.                Mellor                became Chairman of the Board of Directors in 2002 and has been President                and Chief Executive Officer since 1997. He has been a director since                1991.                He was previously Of Counsel with the law firm of Gibson, Dunn &                Crutcher LLP from 1990 to 1997. He is a director for Coeur d’Alene Mines                Corporation, The Ryland Group, Monro Muffler Brake and the California                Chamber of Commerce. He is also on the board of councilors of                Save-the-Redwoods League. He does not serve on the audit committee                of any                of these boards. Mr. Mellor intends to remove himself as a director                from                one of these boards in 2006. |
|                                                  |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  William                M.                Smartt |  63      |  Senior                Vice President and Chief Financial OfficerMr.                Smartt                has been a Senior Vice President and Chief Financial Officer since                April                2004.  Prior to joining the Company, he was an independent                consultant from August 2001 to March 2004.  From 1992 to 2001,                he was Executive Vice President, Chief Financial and Administrative                Officer of DHL Express, a leader in international air express                service.  His previous experience as a Chief Financial Officer                included ten years with Di Giorgio Corporation, a Fortune 500 Company,                whose product lines included the distribution of building materials,                prefabricated components and framing services.                                   |
|                                                  |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  Michael                D.                Mahre  |  46      |  Senior                Vice President - Corporate Development, President and Chief Executive                Officer - BMC ConstructionMr.                Mahre was                elected a Senior Vice President in 2003.  He was elected Vice                President of Corporate Development in 2001 and Chief Executive Officer                of                BMC Construction in 2002.  He joined the Company in 1999 as                Director of Financial Planning and Analysis. Mr. Mahre was a principal                of                The Cambria Group, a private equity investment firm, from 1997 to                1998.                                                                                                                                                                                                                                            |
|                                                  |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  Stanley                M.                Wilson |  61      |  Senior                Vice President, President and Chief Executive Officer - BMC                WestMr.                Wilson                was elected President and CEO of BMC West in 2004 and was appointed                Senior                Vice President in 2003.  He was elected Vice President in 2000                and was General Manager of the Pacific Division of BMC West from                1993 to                2003.  Mr. Wilson has been with the company since its beginning                in 1987.  His previous experience includes 20 years with the                building materials distribution business of Boise Cascade                Corporation.                                                                                                                                                                           |

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INDEX

|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------------------------------------------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Eric                R.                Beem        |  36 |  Vice                President and ControllerMr.                Beem was                appointed Vice President in January 2006 and Controller in April                2005.  He joined the Company as Accounting Manager in                1996.  Mr. Beem is a Certified Public Accountant and his                experience includes three years with an international public accounting                firm.                                                                                                                                                                           |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  John                D.                Fa          |  35 |  Vice                President, Real EstateMr.                Fa joined                the company as Vice President, Real Estate in December 2005.  He                previously served from 1999 to 2005 as Associate Director for Development                at Presidio Trust in San Francisco.                                                                                                                                                                                                                                                                                                   |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  Mark                R.                Kailer      |  52 |  Vice                President, Treasurer and Investor RelationsMr.                Kailer                has been Vice President and Treasurer since 2003.  He joined the                company in 2000 as Assistant Treasurer.  He was previously                Senior Manager of Treasury Services at Circle International Group,                a                publicly-traded global logistics company based in San Francisco,                from 1997                to 2000.                                                                                                               |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  Jeffrey                F.                Lucchesi |  52 |  Senior                Vice President, Chief Information OfficerMr.                Lucchesi                joined the company in August 2004 as Senior Vice President and Chief                Information Officer. From                2000 to                2004, he was Senior Vice President of Worldwide Operations for Corio,                Inc., an enterprise application service provider.  Mr. Lucchesi                also served from 1994 to 2000 as Vice President and Chief Information                Officer for DHL Express, a leader in international air express                services. |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  Steven                H.                Pearson   |  58 |  Senior                Vice President - Human ResourcesMr.                Pearson                has been Senior Vice President of Human Resources since                2001.  From 1987 through 2001 he served as Vice President of                Human Resources.  Mr. Pearson has been with the Company since                its beginning in 1987.  His previous experience also includes 18                years in the human resource function of Boise Cascade                Corporation.                                                                                |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  Paul                S.                Street      |  57 |  Senior                Vice President, Chief Administrative Officer, General Counsel and                Corporate SecretaryMr.                Street                joined the Company in 1999 as Senior Vice President, General Counsel                and                Corporate Secretary and has been Chief Administrative Officer since                2001.  He previously served as our outside General Counsel &                Secretary while a partner of the law firm of Moffatt, Thomas, Barrett,                Rock & Fields.                                                          |

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INDEX

**ITEM      1A.  Risk Factors**

***Risks      Related to Our Business***

***Our      business is dependent on demand for single-family homes which is influenced      by      changes in the overall condition of the U.S. economy, including interest rates,      job formation, consumer confidence and other important      factors.***

***There      are risks associated with changes to our business      model.***

***The      integration of acquired businesses may not result in anticipated cost savings      and revenue synergies being fully realized or may take longer to realize than      expected.***

| ·   | the                uncertainty that an acquired business will achieve anticipated operating                results; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | significant                expenses to integrate; |
|--------------------|---------------------------------------------------|

| ·   | diversion                of                management attention; |
|--------------------|------------------------------------------------------------------|

| ·   | departure                of                key personnel from the acquired                business; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | effectively                managing entrepreneurial spirit and                decision-making; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | integration                of different information systems; |
|--------------------|--------------------------------------------------------------|

| ·   | managing                new                construction service trades; |
|--------------------|-------------------------------------------------------------------------|

| ·   | unanticipated                costs and exposure to unforeseen liabilities                and; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | impairment                of                assets. |
|--------------------|-----------------------------------------------------|

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INDEX

***Our      growth is dependent upon our ability to identify suitable acquisition      candidates.***

***Our      success is dependent upon the availability of and our ability to attract, train      and retain qualified individuals.***

***An      inability to implement and maintain cost structures that align with revenue      growth may have an adverse impact on our operating      results.***

***Changes      in the business models of customers may limit our ability to provide      construction services and building products required by our      customers.***

***Our      operating results are affected by fluctuations in our costs and the availability      of sourcing channels for commodity wood products, concrete, steel and other      building materials.***

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INDEX

***Our      business is subject to intense competition.***

***Weather      conditions, including natural catastrophic events, may cause our operating      results to fluctuate each quarter.***

***The      nature of our business exposes us to construction defect and product liability      claims as well as other legal proceedings.***

***We      may be adversely affected by disruptions in our information      systems.***

***Actual      and perceived vulnerabilities as a result of terrorist activities and armed      conflict may adversely impact consumer confidence and our      business.***

***Numerous      other matters of a local and regional scale, including those of a political,      economic, business, competitive or regulatory nature may have an adverse impact      on our business.***

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INDEX

***Risks      Related to Our Shares***

***Our      share price may fluctuate significantly, which may make it difficult for      shareholders to sell***
***our      shares when desired or at attractive prices.***

***Anti-takeover      defenses in our governing documents and certain provisions under Delaware law      could***
***prevent      an acquisition of our company or limit the price that investors might be willing      to pay for our shares.***

**ITEM      1B.  Unresolved Staff      Comments**

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INDEX

**ITEM      2.  Properties**

| **BMC                Construction** |                               | **BMC                West** |
|-------------------------------------|------------------------------------|-----------------------------|
|                                |
| Location                            | Number                ofProperties |                        | Location | Number                ofProperties |
| Arizona                             | 11                                 |                        | Arizona | 1 |
| California                          | 17                                 |                        | California | 7 |
| Florida                             | 12                            |                        | Colorado | 18  |
| Illinois                            | 1                                  |                        | Idaho | 8 |
| Nevada                              | 9                                  |                        | Montana | 8 |
| Virginia                            | 1                                  |                        | Nevada | 3 |
|                                |                               |                        | Oregon | 2 |
|                                |                               |                        | Texas | 27  |
|                                |                               |                        | Utah | 7 |
|                                |                               |                        | Washington | 5 |

**ITEM      3.  Legal Proceedings**

**ITEM      4.  Submission of Matters to a Vote of Security      Holders**

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INDEX

**PART      II**

**ITEM          5.  **
**Market          for Registrant's Common Equity, Related Stockholder Matters and Issuer          Purchases          of Equity Securities**

|                          | **2005**               |   | 2004                   |
|-------------------------------|------------------------|--------|------------------------|
|                          |  **High**         |   |  **Low**          |   | **Cash                Dividends****Declared** |   |  High |   | Low |   | CashDividendsDeclared |
|                          |                   |   |                   |   |   |   |   |   |   |   |   |
| First                quarter  | **$49.73  ** |   | **$34.00  ** |   | **$0.08  ** |   | $18.33   |   | $14.90   |   | $0.06   |
| Second                quarter | **$72.26  ** |   | **$44.00  ** |   | **$0.10  ** |   | $19.28   |   | $15.70   |   | $0.06   |
| Third                quarter  | **$97.31  ** |   | **$69.36  ** |   | **$0.15  ** |   | $27.65   |   | $16.97   |   | $0.08   |
| Fourth                quarter | **$96.22  ** |   | **$68.21  ** |   | **$0.15  ** |   | $38.94   |   | $25.62   |   | $0.08   |

----

INDEX

**ITEM      6.  Selected Financial Data** 

**Selected      Financial Data**

|                                                            |   | **Year                Ended December 31**  |          |
|-----------------------------------------------------------------|--------|-------------------------------------------------|---------------|
|                                                            |   | **2005**                                        |          | 2004 |   | 2003 |   | 2002 |   | 2001 |   |
| Sales(1)                                                        |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                services                            |   | **$**                                           | **1,586,509** |   | $ | 904,362 |   | $ | 498,052 |   | $ | 293,063 |   | $ | 147,363 |   |
| Building                products                                |   |                                            | **1,325,651** |   |   | 1,186,663 |   |   | 917,019 |   |   | 868,431 |   |   | 945,504 |   |
| Total                sales                                      |   | **$**                                           | **2,912,160** |   | $ | 2,091,025 |   | $ | 1,415,071 |   | $ | 1,161,494 |   | $ | 1,092,867 |   |
|                                                            |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from                operations(2)         |   | **$**                                           | **239,356**   |   | $ | 108,108 |   | $ | 40,429 |   | $ | 39,121 |   | $ | 42,629 |   |
|                                                            |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income(3)                                    |   | **$**                                           | **129,507**   |   | $ | 53,910 | (4) | $ | 19,929 |   | $ | 7,015 | (5) | $ | 20,844 |   |
|                                                            |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                per share:             |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   | **$**                                           | **9.22**      |   | $ | 4.00 |   | $ | 1.50 |   | $ | 0.54 |   | $ | 1.61 |   |
| Diluted                                                         |   | **$**                                           | **8.82**      |   | $ | 3.87 |   | $ | 1.48 |   | $ | 0.53 |   | $ | 1.60 |   |
|                                                            |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Annual cash                dividends declared per share(6) |   | **$**                                           | **0.48**      |   | $ | 0.28 |   | $ | 0.21 |   | $ | 0.05 |   | $ | ― |   |
|                                                            |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working                capital                                  |   | **$**                                           | **304,459**   |   | $ | 284,173 |   | $ | 216,898 |   | $ | 170,492 |   | $ | 160,904 |   |
| Total                assets                                     |   | **$**                                           | **1,150,525** |   | $ | 743,044 |   | $ | 604,199 |   | $ | 503,074 |   | $ | 485,742 |   |
| Long-term                debt, net of current portion           |   | **$**                                           | **278,169**   |   | $ | 206,419 |   | $ | 186,773 |   | $ | 157,375 |   | $ | 167,417 |   |
| Shareholders’                equity                       |   | **$**                                           | **470,061**   |   | $ | 327,678 |   | $ | 271,010 |   | $ | 251,300 |   | $ | 242,894 |   |
|                                                            |   |                                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                flows                provided by operations |   | **$**                                           | **199,280**   |   | $ | 33,677 |   | $ | 12,479 |   | $ | 35,726 |   | $ | 63,687 |   |

|   | (1) | Acquisitions                provided sales of $403.9 million in 2005; $221.4 million in 2004;                $155.2                million in 2003; $117.4 million in 2002 and $100.5 million in                2001. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Acquisitions                provided income (loss) from operations of $31.6 million in 2005;                $2.8                million in 2004; ($3.6) million in 2003; $9.8 million in 2002 and                $7.7                million in 2001. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Impairments                of assets net of tax were $0.8 million in 2005; $1.4 million in 2004;                $0.5                million in 2003; $4.1 million in 2002 and $1.1 million in                2001. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Includes                a                reduction of expenses for lower than expected insurance costs of                $3.8                million net of tax. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The                transitional impairment analysis of goodwill resulted in an impairment                of                $11.7 million net of tax. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | In                February                2006, our Board of Directors approved a two for one split of our                outstanding common shares and first quarter cash dividend. The first                quarter cash dividend will be $0.10 per share after the split or                $0.20 per                share prior to the split of our common shares. The cash dividend                was                initiated in the fourth quarter of                2002.   |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

**ITEM      7.  Management's Discussion and Analysis of Financial Condition and      Results****of      Operations**

**OVERVIEW**

***Homebuilding      Industry***

***Our      Strategy***

***Business      Segments***

**BMC      Construction **
**BMC      West**

----

INDEX

***Acquisition      History***

**2005**

| ·   | framing                services in San Diego, California                (October) |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | concrete                services in Las Vegas, Nevada and concrete and plumbing services                in                southern California (September) |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | additional                20% interest in our existing business providing foundation and shell                construction services in Florida (20% August 2005 and 60% January                2003) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 51%                interest                in concrete services in Arizona                (July) |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | 73%                interest                in plumbing services in Phoenix and Tucson, Arizona (60% April and                13%                July) |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | stucco                services in Las Vegas, Nevada                (June) |
|--------------------|---------------------------------------------------------------------------|

| ·   | 51%                interest                in framing services in Chicago, Illinois                (January) |
|--------------------|--------------------------------------------------------------------------------------------------------------|

**2004**

| ·   | remaining                49%                interest in our existing framing services business in northern California                (49% July 2004 and 51% July 2002) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2003**

| ·   | 67.33%                interest in framing services in Delaware, Maryland and Virginia                (October) |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | 60%                interest                in foundation and shell construction services in Florida                (January) |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

***Performance      Measurements***

| ●Sales                                                | ●Management                of working capital       |
|-------------------------------------------------------------|-----------------------------------------------------------|
| ●Income                from                operations | ●Return                on                investment |

----

INDEX

**RESULTS      OF OPERATIONS**

***2005      COMPARED WITH 2004***

|                                                             |   | **Year                Ended December 31** |        |
|------------------------------------------------------------------|--------|-------------------------------------------|-------------|
|                                                             |   | **2005**                                  |        | **2004** |   |
| **Sales**                                                        |   |                                      |        |   |   |   |   |   |   |
| Construction                services                             |   | **$**                                     | **1,586.5** |   |   | **54.5** | **%** | $ | 904.3 |   |   | 43.2 | % |
| Building                products                                 |   |                                      | **1,325.7** |   |   | **45.5** |   |   | 1,186.7 |   |   | 56.8 |   |
| **Total                sales**                                   |   |                                      | **2,912.2** |   |   | **100.0** |   |   | 2,091.0 |   |   | 100.0 |   |
|                                                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |
| **Costs                and operating expenses**                  |   |                                      |        |   |   |   |   |   |   |   |   |   |   |
| Cost                of goods                sold                 |   |                                      |        |   |   |   |   |   |   |   |   |   |   |
| Construction                services                             |   |                                      | **1,285.9** |   |   | **81.1** |   |   | 768.4 |   |   | 85.0 |   |
| Building                products                                 |   |                                      | **967.9**   |   |   | **73.0** |   |   | 897.7 |   |   | 75.6 |   |
| Total                cost of                goods sold           |   |                                      | **2,253.8** |   |   | **77.4** |   |   | 1,666.1 |   |   | 79.7 |   |
| Impairment                of                assets               |   |                                      | **1.3**     |   |   | **―** |   |   | 2.3 |   |   | 0.1 |   |
| Selling,                general and administrative expenses      |   |                                      | **420.9**   |   |   | **14.5** |   |   | 317.0 |   |   | 15.2 |   |
| Other                income,                net                  |   |                                      | **(3.2**    | **)** |   | **(0.1** | **)** |   | (2.5 | ) |   | (0.1 | ) |
| Total                costs                and operating expenses |   |                                      | **2,672.8** |   |   | **91.8** |   |   | 1,982.9 |   |   | 94.9 |   |
| **Income                from operations**                        |   |                                      | **239.4**   |   |   | **8.2** |   |   | 108.1 |   |   | 5.1 |   |
|                                                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |
| **Net                income**                                    |   | **$**                                     | **129.5**   |   |   | **4.4** | **%** | $ | 53.9 |   |   | 2.6 | % |
|                                                             |   |                                      |        |   |   |   |   |   |   |   |   |   |   |
| **Earnings                per diluted share**                    |   | **$**                                     | **8.82**    |   |   |   |   | $ | 3.87 |   |   |   |   |

***Consolidated      Financial Results***

|                                                     |   |   | **2005**  |   |   | **2004** |   |   | **$                  Δ** |   |   | **%                  Δ** |   |
|----------------------------------------------------------|--------|--------|-----------|--------|--------|----------|--------|--------|-------------------------------|--------|--------|-------------------------------|--------|
| **Sales**                                                |   |   |      |   |   |     |   |   |                          |   |   |                          |   |
|    Construction                  services |   | **$**  | **1,586** |   | $      | 904      |   | $      | 682                           |   |   | 75                            | %      |
|    Building                  products     |   |   | **1,326** |   |   | 1,187    |   |   | 139                           |   |   | 12                            | %      |
|                                                     |   | **$**  | **2,912** |   | $      | 2,091    |   | $      | 821                           |   |   | 39                            | %      |
|                                                     |   |   |      |   |   |     |   |   |                          |   |   |                          |   |
| **Income                  from operations**              |   | **$**  | **239**   |   | $      | 108      |   | $      | 131                           |   |   | 121                           | %      |

----

INDEX

**Business      Segments**

|                            |   | **2005**        |        | **2004**                                     |   |
|---------------------------------|--------|-----------------|-------------|----------------------------------------------|--------|
|                            |   |  **Sales** |        | **Income                from****Operations** |   |  **Sales** |   | **Income                from****Operations** |   |
| BMC                Construction |   | **$**           | **1,394**   |                                         | **$**  | **161** |   | $ | 754 |   | $ | 60 |   |
| BMC                West         |   |            | **1,518**   |                                         |   | **151** |   |   | 1,337 |   |   | 96 |   |
| Corporate                       |   |            | **―** |                                         |   | **(73** | **)** |   | ― |   |   | (48 | ) |
|                            |   | **$**           | **2,912**   |                                         | **$**  | **239** |   | $ | 2,091 |   | $ | 108 |   |

***BMC      Construction***

|                                                |   | **2005** |      | **2004** |   | **$                Δ** |   | **%                Δ** |   |
|-----------------------------------------------------|--------|----------|-----------|----------|--------|-----------------------------|--------|-----------------------------|--------|
| **Sales**                                           |   | **$**    | **1,394** |     | $      | 754                         |   | $                           | 640    |   |   | 85 | % |
|    Less:                Acquisitions |   |     | **(385**  | **)**    |   | ―                     |   |                        | (385   | ) |   | ― |   |
|                                                |   | **$**    | **1,009** |     | $      | 754                         |   | $                           | 255    |   |   | 34 | % |
|                                                |   |     |      |     |   |                             |   |                        |   |   |   |   |   |
| **Income                from operations**           |   | **$**    | **161**   |     | $      | 60                          |   | $                           | 101    |   |   | 168 | % |
|    Less:                Acquisitions |   |     | **(31**   | **)**    |   | ―                     |   |                        | (31    | ) |   | ― |   |
|                                                |   | **$**    | **130**   |     | $      | 60                          |   | $                           | 70     |   |   | 117 | % |

----

INDEX

***BMC      West***

|                                                |   | **2005** |        | **2004** |   | **$                Δ** |   | **%                Δ** |    |
|-----------------------------------------------------|--------|----------|-------------|----------|--------|-----------------------------|--------|-----------------------------|---------|
| **Sales**                                           |   | **$**    | **1,518**   |     | $      | 1,337                       |   | $                           | 181     |   |   | 14 | % |
|    Less:                Acquisitions |   |     | **(19**     | **)**    |   | ―                     |   |                        | (19     | ) |   | ― |   |
|                                                |   | **$**    | **1,499**   |     | $      | 1,337                       |   | $                           | 162     |   |   | 12 | % |
|                                                |   |     |        |     |   |                        |   |                        |    |   |   |   |   |
| **Income                from operations**           |   | **$**    | **151**     |     | $      | 96                          |   | $                           | 55      |   |   | 57 | % |
|    Less:                Acquisitions |   |     | **―** |     |   | ―                     |   |                        | ― |   |   | ― |   |
|                                                |   | **$**    | **151**     |     | $      | 96                          |   | $                           | 55      |   |   | 57 | % |

***Corporate***

----

INDEX

|                                  | **2005** |   | **2004** |   | **$                Δ** |   | **%                Δ** |
|---------------------------------------|----------|--------|----------|--------|-----------------------------|--------|-----------------------------|
| **Operating                expenses** | **$73**  |   | $48      |   | $25                         |   |                  52%   |

***2004      COMPARED WITH 2003***

|                                                             |   | **Year                Ended December 31** |    |
|------------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                             |   | **2004**                                  |    | **2003** |   |
| **Sales**                                                        |   |                                      |    |   |   |   |   |   |   |
| Construction                services                             |   | $                                         | 904.3   |   |   | 43.2 | % | $ | 498.1 |   |   | 35.2 | % |
| Building                products                                 |   |                                      | 1,186.7 |   |   | 56.8 |   |   | 917.0 |   |   | 64.8 |   |
| **Total                sales**                                   |   |                                      | 2,091.0 |   |   | 100.0 |   |   | 1,415.1 |   |   | 100.0 |   |
|                                                             |   |                                      |    |   |   |   |   |   |   |   |   |   |   |
| **Costs                and operating expenses**                  |   |                                      |    |   |   |   |   |   |   |   |   |   |   |
| Cost                of goods                sold                 |   |                                      |    |   |   |   |   |   |   |   |   |   |   |
| Construction                services                             |   |                                      | 768.4   |   |   | 85.0 |   |   | 436.9 |   |   | 87.7 |   |
| Building                products                                 |   |                                      | 897.7   |   |   | 75.6 |   |   | 688.4 |   |   | 75.1 |   |
| Total                cost of                goods sold           |   |                                      | 1,666.1 |   |   | 79.7 |   |   | 1,125.3 |   |   | 79.5 |   |
| Impairment                of                assets               |   |                                      | 2.3     |   |   | 0.1 |   |   | 0.8 |   |   | 0.1 |   |
| Selling,                general and administrative expenses      |   |                                      | 317.0   |   |   | 15.2 |   |   | 250.3 |   |   | 17.6 |   |
| Other                income,                net                  |   |                                      | (2.5    | ) |   | (0.1 | ) |   | (1.7 | ) |   | (0.1 | ) |
| Total                costs                and operating expenses |   |                                      | 1,982.9 |   |   | 94.9 |   |   | 1,374.7 |   |   | 97.1 |   |
| **Income                from operations**                        |   |                                      | 108.1   |   |   | 5.1 |   |   | 40.4 |   |   | 2.9 |   |
|                                                             |   |                                      |    |   |   |   |   |   |   |   |   |   |   |
| **Net                income**                                    |   | $                                         | 53.9    |   |   | 2.6 | % | $ | 19.9 |   |   | 1.4 | % |
|                                                             |   |                                      |    |   |   |   |   |   |   |   |   |   |   |
| **Earnings                per diluted share**                    |   | $                                         | 3.87    |   |   |   |   | $ | 1.48 |   |   |   |   |

***Consolidated      Financial Results***

|                                                   |   | **2004** |   | **2003** |   | **$                Δ** |   | **%                Δ** |   |
|--------------------------------------------------------|--------|----------|--------|----------|--------|-----------------------------|--------|-----------------------------|--------|
| **Sales**                                              |   |     |   |     |   |                        |   |                        |   |
|    Construction                services |   | $        | 904    |     | $      | 498                         |   | $                           | 406    |   |   | 82 | % |
|    Building                products     |   |     | 1,187  |     |   | 917                         |   |                        | 270    |   |   | 29 | % |
|                                                   |   | $        | 2,091  |     | $      | 1,415                       |   | $                           | 676    |   |   | 48 | % |
|                                                   |   |     |   |     |   |                        |   |                        |   |   |   |   |   |
| **Income                from operations**              |   | $        | 108    |     | $      | 40                          |   | $                           | 68     |   |   | 170 | % |

----

INDEX

**Business      Segments**

|                            |   | **2004**        |    | **2003**                                     |   |
|---------------------------------|--------|-----------------|---------|----------------------------------------------|--------|
|                            |   |  **Sales** |    | **Income                from****Operations** |   |  **Sales** |   | **Income                from****Operations** |   |
| BMC                Construction |   | $               | 754     |                                         | $      | 60 |   | $ | 408 |   | $ | 19 |   |
| BMC                West         |   |            | 1,337   |                                         |   | 96 |   |   | 1,007 |   |   | 55 |   |
| Corporate                       |   |            | ― |                                         |   | (48 | ) |   | ― |   |   | (34 | ) |
|                            |   | $               | 2,091   |                                         | $      | 108 |   | $ | 1,415 |   | $ | 40 |   |

***BMC      Construction***

|                                      |   | **2004** |   | **2003** |   | **$                Δ** |   | **%                Δ** |   |
|-------------------------------------------|--------|----------|--------|----------|--------|-----------------------------|--------|-----------------------------|--------|
| **Sales**                                 |   | $        | 754    |     | $      | 408                         |   | $                           | 346    |   |   | 85 | % |
|    Less: Acquisitions |   |     | (185   | )        |   | ―                     |   |                        | (185   | ) |   | ― |   |
|                                      |   | $        | 569    |     | $      | 408                         |   | $                           | 161    |   |   | 39 | % |
|                                      |   |     |   |     |   |                        |   |                        |   |   |   |   |   |
| **Income                from operations** |   | $        | 60     |     | $      | 19                          |   | $                           | 41     |   |   | 216 | % |
|    Less: Acquisitions |   |     | (6     | )        |   | ―                     |   |                        | (6     | ) |   | ― |   |
|                                      |   | $        | 54     |     | $      | 19                          |   | $                           | 35     |   |   | 184 | % |

----

INDEX

***BMC      West***

|                                      |   | **2004** |   | **2003** |   | **$                Δ** |   | **%                Δ** |   |
|-------------------------------------------|--------|----------|--------|----------|--------|-----------------------------|--------|-----------------------------|--------|
| **Sales**                                 |   | $        | 1,337  |     | $      | 1,007                       |   | $                           | 330    |   |   | 33 | % |
|    Less: Acquisitions |   |     | (36    | )        |   | ―                     |   |                        | (36    | ) |   | ― |   |
|                                      |   | $        | 1,301  |     | $      | 1,007                       |   | $                           | 294    |   |   | 29 | % |
|                                      |   |     |   |     |   |                        |   |                        |   |   |   |  |   |
| **Income                from operations** |   | $        | 96     |     | $      | 55                          |   | $                           | 41     |   |   | 75 | % |
|    Less: Acquisitions |   |     | 3      |     |   | ―                     |   |                        | 3      |   |   | ― |   |
|                                      |   | $        | 99     |     | $      | 55                          |   | $                           | 44     |   |   | 80 | % |

***Corporate***

|                                  |   | **2004** |    | **2003** |    | **$                Δ** |    | **%                Δ** |   |
|---------------------------------------|--------|----------|--------------|----------|--------------|-----------------------------|--------------|-----------------------------|--------|
| **Operating                expenses** |   | $        | 48           |     | $            | 34                          |         | $                           | 14     |   |   | 41% |   |

**LIQUIDITY      AND CAPITAL RESOURCES**

----

INDEX

***Operations***

***Capital      Investment and Acquisitions***

***Financing***

----

INDEX

***Revolver***

***Term      Notes***

***Other***

***Expansion      of Credit Facility, Covenants and Maturities***

| 2006       | $      | 10,131  |
|------------|--------|---------|
| 2007       |   | 13,914  |
| 2008       |   | 14,073  |
| 2009       |   | 77,775  |
| 2010       |   | 171,851 |
| Thereafter |   | 556     |
|       | $      | 288,300 |

----

INDEX

***Hedging      Activities***

***Equity***

----

INDEX

**OFF-BALANCE      SHEET ARRANGEMENTS**

**DISCLOSURES      OF CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS**

|                                                                                                                                |   | **Payments                Due by Period**             |    |             |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|------------------|--------|
| **Contractual                Obligations**                                                                                          |   | **Less                than****1                Year** |    | **1-3****Years** |   | **3-5Years** |   | **More                than****5                Years** |   | **Total** |   | **Fair                Value** |   |
| Long-term                debt                                                                                                       |   | $                                                     | 9.9     |             | $      | 27.4 |   | $ | 249.6 |   | $ | 0.6 |   | $ | 287.5 |   |   | $286.0 |   |
| Capital                lease                obligations                                                                             |   |                                                  | 0.3     |             |   | 0.5 |   |   | ― |   |   | ― |   |   | 0.8 |   |   | 0.7 |   |
| Operating                leases                                                                                                     |   |                                                  | 19.1    |             |   | 30.6 |   |   | 19.9 |   |   | 7.6 |   |   | 77.2 |   |   | 77.2 |   |
| Unconditional                purchase obligations                                                                                   |   |                                                  | ― |             |   | ― |   |   | ― |   |   | ― |   |   | ― |   |   | ― |   |
| Other                long-term commitments                                                                                          |   |                                                  | ― |             |   | ― |   |   | ― |   |   | ― |   |   | ― |   |   | ― |   |
|                                                                                                                                |   | $                                                     | 29.3    |             | $      | 58.5 |   | $ | 269.5 |   | $ | 8.2 |   | $ | 365.5 |   |   | $363.9 |   |
|                                                                                                                                |   |                                                  |    |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                rate                swap contracts                                                                          |   |                                                  |    |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Notional                principal                amount of interest rate                exchange                agreements maturing |   |                                                  |    |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Variable                to                fixed                                                                                     |   |                                                  | ― |             |   | ― |   |   | ― |   |   | ― |   | $ | 100.0 |   |  | (1.2) |   |
| Average                pay                rate                                                                                      |   |                                                  | ― |             |   | ― |   |   | ― |   |   | ― |   |   | 4.39 | % |  |   |   |
| Average                receive rate                                                                                                 |   |                                                  | ― |             |   | ― |   |   | ― |   |   | ― |   |   | 3.30 | % |   |   |   |
|                                                                                                                                |   |                                                  |    |             |   |   |   |   |   |   |   |   |   |   |   |   |   | $362.7 |   |

----

INDEX

**QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**CRITICAL      ACCOUNTING ESTIMATES**

***Revenue      Recognition for Construction Services***

----

INDEX

***Estimated      Losses on Uncompleted Contracts and Changes in Contract      Estimates***

***Goodwill***

***Insurance      Deductible Reserves***

----

INDEX

***Share-based      Compensation***

**RECENT      ACCOUNTING PRINCIPLES**

*Share-Based      Payment*
*Accounting      for      Stock Issued to Employees*

**BUSINESS      RISKS AND FORWARD-LOOKING STATEMENTS**

----

INDEX

| ·   | demand                for                single-family homes which is influenced by changes in the overall                condition of the U.S. economy, including interest rates, job formation,                consumer confidence and other important                factors; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                to                our business model; |
|--------------------|--------------------------------------------------------------|

| ·   | the                integration of acquired businesses may not result in anticipated                cost                savings and revenue synergies being fully realized or may take longer                to                realize than expected; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                ability                to identify suitable acquisition                candidates; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | availability                of and our ability to attract, train and retain qualified                individuals; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | our                ability                to implement and maintain cost structures that align with revenue                growth; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in                the business models of our customers may limit our ability to provide                construction services and building products required by our                customers; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | fluctuations                in our costs and availability of sourcing channels for commodity                wood                products, concrete, steel and other building                materials; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | intense                competition; |
|--------------------|-------------------------------------|

| ·   | weather                conditions including natural catastrophic                events; |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | exposure                to                construction defect and product liability claims as well as other                legal                proceedings; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | disruptions                in our information systems; |
|--------------------|--------------------------------------------------------|

| ·   | actual                and                perceived vulnerabilities as a result of terrorist activities and                armed                conflict; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | numerous                other matters of a local and regional scale, including those of a                political, economic, business, competitive or regulatory                nature. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | price                for our                shares may fluctuate significantly;                and |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | anti-takeover                defenses and certain provisions could prevent an acquisition of our                company or limit share price. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

**ITEM      7A.  Quantitative and Qualitative Disclosures About      Market Risk**

***Inventory      Price Risk***

***Interest      Rate Risk***

----

INDEX

**ITEM      8.  Financial Statements and Supplementary      Data**

**Building      Materials Holding Corporation**

**Consolidated      Statements of Income**

**(thousands,      except per share data)**

|                                                                                             |   | **Year                Ended December 31**  |          |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|---------------|
|                                                                                             |   | **2005**                                        |          |  **2004** |   |  **2003** |   |
| **Sales**                                                                                        |   |                                            |          |    |   |    |   |
|    Construction                services                                           |   | **$**                                           | **1,586,509** |   | $ | 904,362 |   | $ | 498,052 |   |
|    Building                products                                               |   |                                            | **1,325,651** |   |   | 1,186,663 |   |   | 917,019 |   |
| **      Total                sales**                               |   |                                            | **2,912,160** |   |   | 2,091,025 |   |   | 1,415,071 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| **Costs                and operating expenses**                                                  |   |                                            |          |   |   |   |   |   |   |   |
|    Cost                of goods sold                                              |   |                                            |          |   |   |   |   |   |   |   |
|       Construction                services                         |   |                                            | **1,285,949** |   |   | 768,407 |   |   | 436,908 |   |
|       Building                products                             |   |                                            | **967,877**   |   |   | 897,725 |   |   | 688,354 |   |
|    Impairment                of assets                                            |   |                                            | **1,320**     |   |   | 2,274 |   |   | 829 |   |
|    Selling,                general and administrative expenses                    |   |                                            | **420,862**   |   |   | 317,002 |   |   | 250,319 |   |
|    Other                income, net                                               |   |                                            | **(3,204**    | **)** |   | (2,491 | ) |   | (1,768 | ) |
|       Total                costs and operating expenses            |   |                                            | **2,672,804** |   |   | 1,982,917 |   |   | 1,374,642 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| **Income                from operations**                                                        |   |                                            | **239,356**   |   |   | 108,108 |   |   | 40,429 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| Interest                expense                                                                  |   |                                            | **14,420**    |   |   | 13,560 |   |   | 9,279 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| Income                before                income taxes, minority interests and equity earnings |   |                                            | **224,936**   |   |   | 94,548 |   |   | 31,150 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| Income                taxes                                                                      |   |                                            | **79,915**    |   |   | 35,198 |   |   | 11,402 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| Minority                interests income                                                         |   |                                            | **(15,514**   | **)** |   | (5,440 | ) |   | (1,250 | ) |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| Equity                earnings, net of tax of $918                                               |   |                                            | **―**   |   |   | ― |   |   | 1,431 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| **Net                income**                                                                    |   | **$**                                           | **129,507**   |   | $ | 53,910 |   | $ | 19,929 |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
|                                                                                             |   |                                            |          |   |   |   |   |   |   |   |
| **Net                income per share:**                                                         |   |                                            |          |   |   |   |   |   |   |   |
|    Basic                                                                          |   |                                            | **$9.22**     |   |   | $4.00 |   |   | $1.50 |   |
|    Diluted                                                                        |   |                                                 | **$8.82**     |   |   | $3.87 |   |   | $1.48 |   |

----

INDEX

**Building      Materials Holding Corporation**

**Consolidated      Balance Sheets**

**(thousands,      except share data)**

|                                                        |   | **December                31** |     |   |          | **December                31** |
|-------------------------------------------------------------|--------|--------------------------------|----------|--------|---------------|--------------------------------|
|                                                        |   | **2005**                       | **2004** |   |          |                           | **2005** | **2004** |
| **ASSETS**                                                  |   |                           |     |   |          |                           | **LIABILITIES,                MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY** |   |   |   |   |   |
| Cash                and cash                equivalents     | **$**  | **30,078 **               |     | $      | 19,496   |                           |   |   |   |   |   |   |
| Marketable                securities                        |   | **3,645 **                |     |   | 2,216    |                           | Accounts                payable | **$** | **146,627 ** |   | $ | 77,591  |
| Receivables,                net of allowances               |   |                           |     |   |          |                           | Accrued                compensation |   | **65,928 ** |   |   | 34,078  |
|    of                $3,756 and $4,367       |   | **363,527 **              |     |   | 238,071  |                           | Insurance                deductible reserves |   | **21,872 ** |   |   | 12,903  |
| Inventory                                                   |   | **168,282 **              |     |   | 153,391  |                           | Other                accrued                liabilities |   | **51,579 ** |   |   | 26,177  |
| Unbilled                receivables                         |   | **56,128 **               |     |   | 17,196   |                           | Billings                in                excess of costs and estimated earnings |   | **33,799 ** |   |   | 11,274  |
| Deferred                income taxes                        |   | **5,768 **                |     |   | 11,913   |                           |   |   |  |   |   |  |
| Prepaid                expenses and other                   |   | **6,967 **                |     |   | 7,317    |                           | Current                portion of long-term debt |   | **10,131 ** |   |   | 3,404  |
|    Total                current assets       |   | **634,395 **              |     |   | 449,600  |                           |    Total                current liabilities |   | **329,936 ** |   |   | 165,427  |
|                                                        |   |                           |     |   |          |                           |   |   |   |   |   |   |
| Property                and                equipment        |   |                           |     |   |          |                           | Deferred                income taxes |   | **6,911 ** |   |   | 297  |
|    Land                                      |   | **47,328 **               |     |   | 37,036   |                           | Insurance                deductible reserves |   | **20,753 ** |   |   | 13,736  |
|    Buildings                and improvements |   | **118,556 **              |     |   | 102,321  |                           | Long-term                debt |   | **278,169 ** |   |   | 206,419  |
|    Equipment                                 |   | **166,633 **              |     |   | 124,451  |                           | Other                long-term liabilities |   | **30,689 ** |   |   | 23,162  |
|    Construction                in progress   |   | **9,485 **                |     |   | 4,956    |                           |    Total                liabilities |   | **666,458 ** |   |   | 409,041  |
|    Accumulated                depreciation   |   | **(121,525)**                  |     |   | (104,453)     |                           |   |   |   |   |   |   |
| Marketable                securities                        |   | **28,875 **               |     |   | 16,760   |                           | Minority                interests |   | **14,006 ** |   |   | 6,325  |
| Deferred                loan                costs           |   | **3,616 **                |     |   | 2,084    |                           |   |   |   |   |   |   |
| Other                long-term assets                       |   | **20,465 **               |     |   | 16,281   |                           | Commitments                and contingent liabilities |   | **― ** |   |   | ―  |
| Other                intangibles, net                       |   | **55,227 **               |     |   | 13,692   |                           |   |   |   |   |   |   |
| Goodwill                                                    |   | **187,470 **              |     |   | 80,316   |                           | Shareholders’                equity |   |   |   |   |   |
|    Total                assets               | **$**  | **1,150,525 **            |     | $      | 743,044  |                           |    Common                shares, $0.001 par value: |   |   |   |   |   |
|                                                        |   |                           |     |   |          |                           |    authorized                50 million and 20 million |   |   |   |   |   |
|                                                        |   |                           |     |   |          |                           |    shares;                issued and outstanding |   |   |   |   |   |
|                                                        |   |                           |     |   |          |                           |    14,379,290                and 13,852,683 shares |   | **14 ** |   |   | 14  |
|                                                        |   |                           |     |   |          |                           |    Additional                paid-in capital |   | **143,795 ** |   |   | 124,594  |
|                                                        |   |                           |     |   |          |                           |    Unearned                compensation |   | **(2,698)** |   |   | (1,383) |
|                                                        |   |                           |     |   |          |                           |    Retained                earnings |   | **328,463 ** |   |   | 205,812  |
|                                                        |   |                           |     |   |          |                           |                       Accumulated other comprehensive income (loss),                    net |   | **487**  |   |   | (1,359) |
|                                                        |   |                           |     |   |          |                           |       Total                shareholders’ equity |   | **470,061 ** |   |   | 327,678  |
|                                                        |   |                           |     |   |          |                           | Total                  liabilities, minority interests and shareholders’                  equity | **$** | **1,150,525 ** |   | $ | 743,044  |

----

INDEX

**Building      Materials Holding Corporation**

**Consolidated      Statements of Shareholders’ Equity**

**(thousands)**

|                                                                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   | Accumulated                    OtherComprehensive                    Income (Loss)  |   |   |        |   |
|------------------------------------------------------------------------------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------|--------|--------|-------------|--------|
|                                                                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   | Net                    Unrealized Gain (Loss) From  |   |   |                                                                                     |   |
|                                                                                           |   |   | Common                    Shares |   |   | Additional                    Paid-In |   |   | Unearned      |   |   | Retained     |   |   | Interest                    Rate                    Swap |   |   | Marketable                                                                               |   |   |        |   |
|                                                                                           |   |   | Shares                           |   |   | Amount                                |   |   | Capital  |   |   | Compensation |   |   |  Earnings                                           |   |   | Contracts                                                                                |   |   | Securities  |   |   | Total  |   |
| **Balance                    at December 31, 2002**                                            |   |   | **13,136**                       |   | $      | 13                                    |   | $      | 112,709       |   | $      | ―      |   | $      | 138,578                                                  |   | $      | ―                                                                                  |   | $      | ―     |   | $ | 251,300 |   |
|                                                                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   |   |   |
|    Net                    income                                                |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   | 19,929                                                   |   |   |                                                                                     |   |   |        |   |   | 19,929 |   |
|    Share                    options exercised                                   |   |   | 88                               |   |   |                                  |   |   | 913           |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 913 |   |
|       Tax                    benefit for share options exercised |   |   |                             |   |   |                                  |   |   | 141           |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 141 |   |
|    Shares                    issued from Director Plan                          |   |   | 25                               |   |   |                                  |   |   | 319           |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 319 |   |
|                       Shares issued for acquisitions                                 |   |   | 85                               |   |   |                                  |   |   | 1,200         |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 1,200 |   |
|    Cash                    dividends on common shares                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   | (2,792                                                   | )      |   |                                                                                     |   |   |        |   |   | (2,792 | ) |
| **Balance                    at December 31, 2003**                                            |   |   | **13,334**                       |   |   | **13**                                |   |   | **115,282**   |   |   | **―**  |   |   | **155,715**                                              |   |   | **―**                                                                              |   |   | **―** |   |   | **271,010** |   |
|                                                                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   |   |   |
|    Net                    income                                                |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   | 53,910                                                   |   |   |                                                                                     |   |   |        |   |   | 53,910 |   |
|    Unrealized                    loss                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   | (2,215                                                                                   | )      |   |        |   |   | (2,215 | ) |
|       Tax                    benefit for unrealized loss         |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   | 853                                                                                      |   |   |        |   |   | 853 |   |
|    Unrealized                    gain                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   | 5           |   |   | 5 |   |
|       Taxes                    for unrealized gain               |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   | (2          | )      |   | (2 | ) |
| **   Comprehensive                    income**                                  |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 52,551 |   |
|                                                                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   |   |   |
|    Share                    options exercised                                   |   |   | 412                              |   |   | 1                                     |   |   | 5,008         |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 5,009 |   |
|       Tax                    benefit for share options exercised |   |   |                             |   |   |                                  |   |   | 2,041         |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 2,041 |   |
|    Shares                    issued from Director Plan                          |   |   | 17                               |   |   |                                  |   |   | 285           |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 285 |   |
|    Shares                    issued from Employee Plan                          |   |   | 15                               |   |   |                                  |   |   | 356           |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 356 |   |
|    Issuance                    of restricted shares                             |   |   | 75                               |   |   |                                  |   |   | 1,622         |   |   | (1,622       | )      |   |                                                     |   |   |                                                                                     |   |   |        |   |   | ― |   |
|       Earned                    compensation expense             |   |   |                             |   |   |                                  |   |   |          |   |   | 239          |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | 239 |   |
|    Cash                    dividends on common shares                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   | (3,813                                                   | )      |   |                                                                                     |   |   |        |   |   | (3,813 | ) |
| **Balance                    at December 31, 2004**                                            |   |   | **13,853**                       |   |   | **14**                                |   |   | **124,594**   |   |   | **(1,383**   | **)**  |   | **205,812**                                              |   |   | **(1,362**                                                                               | **)**  |   | **3**       |   |   | **327,678** |   |
|                                                                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   |   |   |
|                                                                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   |   |   |
|    Net                    income                                                |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   | **129,507**                                              |   |   |                                                                                     |   |   |        |   |   | **129,507** |   |
|    Unrealized                    gain                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   | **3,412**                                                                                |   |   |        |   |   | **3,412** |   |
|       Taxes                    for unrealized gain               |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   | **(1,314**                                                                               | **)**  |   |        |   |   | **(1,314** | **)** |
|    Unrealized                    loss                                           |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   | **(410**    | **)**  |   | **(410** | **)** |
|       Tax                    benefit for unrealized loss         |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   | **158**     |   |   | **158** |   |
| **   Comprehensive                    income**                                  |   |   |                             |   |   |                                  |   |   |          |   |   |         |   |   |                                                     |   |   |                                                                                     |   |   |        |   |   | **131,353** |   |

----

INDEX

|                                                                       |       |   |   |   |   |   |        |   |        |            |   |        |              |   |        |          |   |        |      |   |        |                |
|----------------------------------------------------------------------------|------------|--------|--------|--------|--------|--------|-------------|--------|-------------|-----------------|--------|-------------|-------------------|--------|-------------|---------------|--------|-------------|-----------|--------|-------------|---------------------|
|                   Share options exercised                        | **430**    |   |   |        |   |        | **4,905**   |   |             |                 |   |        |                   |   |        |               |        |             |           |   |        | **4,905**** ** |
|                     Tax benefit for share options exercised |       |   |   |   |   |   | **9,140**   |   |        |            |   |        |              |   |        |          |   |        |      |   |        | **9,140 **     |
|                 Shares issued from Director Plan                 | **7**      |   |   |   |   |   | **380**     |   |        |            |   |        |              |   |        |          |   |        |      |   |             | **380**        |
|                 Shares issued from Employee Plan                 | **18**     |   |   |   |   |   | **1,160**   |   |        |            |   |        |              |   |        |          |   |        |      |   |        | **1,160**      |
|                 Shares issued for acquisition                    | **17**     |   |   |   |   |   | **1,000**   |   |        |            |   |        |              |   |        |          |   |        |      |   |        | **1,000**** ** |
|                   Issuance of restricted shares                  | **54**     |   |   |   |   |   | **2,616**   |   |        | **(2,616)**     |   |        |              |   |        |          |   |        |      |   |        | **―**    |
|                   Earned compensation expense          |       |   |   |   |   |   |        |   |        | **1,301**  |   |        |              |   |        |          |   |        |      |   |        | **1,301**      |
|                 Cash dividends on common shares                  |       |   |   |   |   |   |        |   |        |            |   |        | **(6,856)**  |   |        |          |   |        |      |   |        | **(6,856)**         |
| **Balance                at December 31, 2005**                            | **14,379** |   | **$**  | **14** |   | **$**  | **143,795** |   | **$**  | **(2,698)**     |   | **$**  | **328,463**       |   | **$**  | **736**  |   | **$**  | **(249)** |   | **$**  | **470,061 **   |

----

INDEX

**Building      Materials Holding Corporation**

**Consolidated      Statements of Cash Flows**

**(thousands)**

|                                                                                                                                                                            | **Year                Ended December 31** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
| **Operating                Activities**                                                                                                                                         | **2005**                                  |   | **2004** | **2003** |
|    Net                income                                                                                                                                     | **$**                                     | **129,507 ** |   | $ | 53,910  |   | $ | 19,929  |
|    Items                in net income not using (providing) cash:                                                                                                |                                      |   |   |   |   |   |   |   |
|       Equity                earnings, net of amortization and before taxes of $918                                                                |                                      | **― ** |   |   | ―  |   |   | (2,349) |
|       Minority                interests, net                                                                                                      |                                      | **15,514 ** |   |   | 5,440  |   |   | 1,059  |
|       Impairment                of assets                                                                                                         |                                      | **1,320 ** |   |   | 2,274  |   |   | 829  |
|       Depreciation                and amortization                                                                                                |                                      | **28,067 ** |   |   | 23,312  |   |   | 20,785  |
|       (Gain)                Loss on sale of assets, net                                                                                           |                                      | **(194)** |   |   | 334  |   |   | (1,161) |
|       Deferred                financing costs                                                                                                     |                                      | **― ** |   |   | ―  |   |   | 660  |
|       Deferred                income taxes                                                                                                        |                                      | **(3,473)** |   |   | (7,490) |   |   | 2,556  |
|       Tax                benefit for share options                                                                                                |                                      | **9,140 ** |   |   | 2,041  |   |   | ―  |
|       Changes                in assets and liabilities, net of effects of acquisitions and sales                of                business units: |                                      |   |   |   |   |   |   |   |
|             Receivables,                net                                                                         |                                      | **(19,049)** |   |   | (45,687) |   |   | (35,076) |
|             Inventory                                                                                               |                                      | **(3,332)** |   |   | (40,258) |   |   | (25,929) |
|             Unbilled                receivables                                                                     |                                      | **(8,378)** |   |   | (8,571) |   |   | (473) |
|             Prepaid                expenses and other current assets                                                |                                      | **4,340 ** |   |   | (1,895) |   |   | 2,304  |
|             Accounts                payable                                                                         |                                      | **1,852 ** |   |   | 11,413  |   |   | 3,439  |
|             Accrued                compensation                                                                     |                                      | **24,465 ** |   |   | 15,643  |   |   | (2,580) |
|             Insurance                deductible reserves                                                            |                                      | **5,777 ** |   |   | 3,045  |   |   | 11,013  |
|             Other                accrued liabilities                                                                |                                      | **(4,611)** |   |   | 5,777  |   |   | 9,221  |
|             Billings                in excess of costs and estimated earnings                                       |                                      | **(1,911)** |   |   | (795) |   |   | 5,579  |
|             Other                long-term assets and liabilities                                                   |                                      | **18,181 ** |   |   | 13,057  |   |   | 3,633  |
|          Other,                net                                                                                                 |                                      | **2,065 ** |   |   | 2,127  |   |   | (960) |
|    Cash                flows provided by operating activities                                                                                                    |                                      | **199,280 ** |   |   | 33,677  |   |   | 12,479  |
|                                                                                                                                                                            |                                      |   |   |   |   |   |   |   |
| **Investing                Activities**                                                                                                                                         |                                      |   |   |   |   |   |   |   |
|    Purchases                of property and equipment                                                                                                            |                                      | **(46,540)** |   |   | (27,652) |   |   | (15,887) |
|    Acquisitions                and investments in businesses, net of cash acquired                                                                               |                                      | **(203,201)** |   |   | (22,738) |   |   | (30,269) |
|    Proceeds                from dispositions of property and equipment                                                                                           |                                      | **1,358 ** |   |   | 12,278  |   |   | 10,065  |
|    Proceeds                from sales of business units, net of cash sold                                                                                        |                                      | **― ** |   |   | ―  |   |   | 6,591  |
|    Purchase                of marketable securities                                                                                                              |                                      | **(14,077)** |   |   | (19,026) |   |   | ―  |
|    Other,                net                                                                                                                                     |                                      | **892 ** |   |   | (871) |   |   | (961) |
|    Cash                flows used by investing activities                                                                                                        |                                      | **(261,568)** |   |   | (58,009) |   |   | (30,461) |
|                                                                                                                                                                            |                                      |   |   |   |   |   |   |   |
| **Financing                Activities**                                                                                                                                         |                                      |   |   |   |   |   |   |   |
|    Net                borrowings (payments) under revolver                                                                                                       |                                      | **(3,700)** |   |   | 20,800  |   |   | 9,200  |
|    Borrowings                under term note                                                                                                                     |                                      | **75,000 ** |   |   | ―  |   |   | 31,500  |
|    Principal                payments on term note                                                                                                                |                                      | **(1,251)** |   |   | (1,250) |   |   | (9,425) |
|    Net                payments on other notes payable                                                                                                            |                                      | **(7,605)** |   |   | (932) |   |   | (410) |
|    Increase                in book overdrafts                                                                                                                    |                                      | **17,404 ** |   |   | 5,411  |   |   | 554  |
|    Share                options exercised                                                                                                                        |                                      | **4,905 ** |   |   | 5,008  |   |   | 895  |
|    Dividends                paid                                                                                                                                 |                                      | **(5,807)** |   |   | (3,505) |   |   | (2,649) |
|    Deferred                financing costs                                                                                                                       |                                      | **(2,236)** |   |   | (175) |   |   | (1,394) |
|    Distributions                to minority interests                                                                                                            |                                      | **(2,792)** |   |   | (728) |   |   | ―  |
|    Other,                net                                                                                                                                     |                                      | **(1,048)** |   |   | (307) |   |   | ―  |
|    Cash                flows provided by financing activities                                                                                                    |                                      | **72,870 ** |   |   | 24,322  |   |   | 28,271  |
|                                                                                                                                                                            |                                      |   |   |   |   |   |   |   |
| **Increase                (Decrease) in Cash and Cash Equivalents**                                                                                                             |                                      | **10,582 ** |   |   | (10) |   |   | 10,289  |
|                                                                                                                                                                            |                                      |   |   |   |   |   |   |   |
|    Cash                and cash equivalents, beginning of year                                                                                                   |                                      | **19,496 ** |   |   | 19,506  |   |   | 9,217  |
|    Cash                and cash equivalents, end of year                                                                                                         | **$**                                     | **30,078 ** |   | $ | 19,496  |   | $ | 19,506  |
|                                                                                                                                                                            |                                      |   |   |   |   |   |   |   |
| **Supplemental                Disclosure of Cash Flow Information**                                                                                                             |                                      |   |   |   |   |   |   |   |
|    Accrued                but unpaid dividends                                                                                                                   | **$**                                     | **2,158 ** |   | $ | 1,108  |   | $ | 800  |
|    Cash                paid for interest                                                                                                                         | **$**                                     | **13,682 ** |   | $ | 12,902  |   | $ | 9,327  |
|    Cash                paid for income taxes                                                                                                                     | **$**                                     | **70,553 ** |   | $ | 37,777  |   | $ | 7,795  |

| **Supplemental                Schedule of Non-cash Investing Activities** |   |              |   |   |         |   |   |         |
|---------------------------------------------------------------------------|--------|-------------------|--------|--------|--------------|--------|--------|--------------|
|    Fair                value of assets acquired            | **$**  | **337,924 ** |   | $      | 25,353  |   | $      | 44,131  |
|    Liabilities                assumed                      | **$**  | **134,723 ** |   | $      | 2,615   |   | $      | 13,862  |
|    Cash                paid                                | **$**  | **203,201 ** |   | $      | 22,738  |   | $      | 30,269  |

----

INDEX

***Notes      to Consolidated Financial Statements***

***1.***
***Summary      of Significant Accounting Policies***

***Nature      of Operations***

***Principles      of Consolidation***

***Use      of Estimates***

***·***
***Revenue      Recognition for Construction Services***

***·***
***Estimated      Losses on Uncompleted Contracts and Changes in Contract***
***Estimates***

----

INDEX

***·***
***Goodwill***

***·***
***Insurance      Deductible Reserves***

***·***
***Share-based        compensation***

***Cash      and Cash Equivalents***

***Receivables***

***Inventory      Valuation***

***Unbilled      Receivables and Billings in Excess of Costs and Estimated      Earnings***

----

INDEX

***Property      and Equipment***

***Long-lived      Assets***

***Revenue      Recognition***

***Shipping      and Handling***

----

INDEX

***Share-based      Compensation***

*Accounting      for      Stock Issued to Employees*
*Accounting      for      Stock-Based Compensation*

|                                                                                                                                                                                                        | **Year                  Ended December 31** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|
|                                                                                                                                                                                                        |                                        | **2005** |   |   | 2004 |   |   | 2003 |
| Net                  income,                  as reported                                                                                                                                                   | **$**                                       | **129,507** |   | $ | 53,910  |   | $ | 19,929  |
| Add:                  Share-based employee compensation                    expense determined under APB 25, net of                    related tax effects                               |                                        | **555** |   |   | 659  |   |   | 446  |
| Deduct:                  Share-based employee compensation                    expense determined under fair value method                     for all awards, net of related tax effects |                                        | **(2,497)** |   |   | (1,892) |   |   | (1,664) |
| Pro                  forma net                  income                                                                                                                                                      | **$**                                       | **127,565** |   | $ | 52,677  |   | $ | 18,711  |
|                                                                                                                                                                                                        |                                        |   |   |   |   |   |   |   |
| Earnings                  per                  share:                                                                                                                                                       |                                        |   |   |   |   |   |   |   |
| Basic                  - as                  reported                                                                                                                                                       |                                        | **$9.22** |   |   | $4.00  |   |   | $1.50  |
| Basic                  - pro                  forma                                                                                                                                                         |                                        | **$9.08** |   |   | $3.90  |   |   | $1.41  |
|                                                                                                                                                                                                        |                                        |   |   |   |   |   |   |   |
| Diluted                  - as                  reported                                                                                                                                                     |                                        | **$8.82** |   |   | $3.87  |   |   | $1.48  |
| Diluted                  - pro                  forma                                                                                                                                                       |                                        | **$8.69** |   |   | $3.78  |   |   | $1.39  |

***Recent      Accounting Principles***

*Share-Based      Payment*
*Accounting      for      Stock Issued to Employees*

***Reclassifications***

----

INDEX

***2.***
***Net      Income Per Share***

|                                                                                                                                                                     | **Year                  Ended December 31** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|
|                                                                                                                                                                     |                                        | **2005** |   |   | 2004 |   |   | 2003 |
| Net                  income                                                                                                                                              | **$**                                       | **129,507 ** |   | $ | 53,910  |   | $ | 19,929  |
|                     Weighted average shares used to      determine                  basic net income per share                   |                                        | **14,051 ** |   |   | 13,494  |   |   | 13,279  |
|                     Net effect of dilutive stock options and      restricted                  stock (1)                     |                                        | **630 ** |   |   | 429  |   |   | 162  |
|    Weighted                  average shares used to       determine                  diluted net income per share** ** | **14,681 **                            |   |   | 13,923  |   |   | 13,441  |
|                                                                                                                                                                     |                                        |   |   |   |   |   |   |   |
| Net                  income                  per share:                                                                                                                  |                                        |   |   |   |   |   |   |   |
|    Basic                                                                                                                                                  |                                        | **$9.22 ** |   |   | $4.00  |   |   | $1.50  |
|    Diluted                                                                                                                                                |                                        | **$8.82 ** |   |   | $3.87  |   |   | $1.48  |
|                                                                                                                                                                     |                                        |   |   |   |   |   |   |   |
| Annual                  cash                  dividends declared per share                                                                                               |                                        | **$0.48 ** |   |   | $0.28  |   |   | $0.21  |

| (1)   | Options                to                purchase 208,000 shares in the first quarter of 2005 and 325,525                shares in                2003 were not dilutive and therefore excluded in the computations                of                diluted income per share.  There were no options excluded from                the computation of diluted income per share in 2004.  Options                considered not dilutive are those with exercise prices greater than                the                average market value of the common shares in the periods                presented.   |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***3.***
***Impairment      of Assets***

***4.***
***Acquisitions      and Minority Interests***

----

INDEX

| ·   | In                October                2005, BMC Construction acquired a framing services business in San                Diego,                California for approximately $72.5 million in cash of which $7.6                million                has been retained for the settlement period.  This purchase                price is subject to working capital adjustment and an additional                cash                payment may be required based on operating                performance.  Information required to complete the purchase                price allocation is not yet available.  Final allocation of the                purchase price will be completed as soon as this information is                available.   |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                September                2005, BMC Construction acquired a concrete and plumbing services                business                in Las Vegas, Nevada and Southern California for $84.1 million in                cash.  The purchase price is subject to working capital                adjustment of approximately $1.6 million.  Information required                to complete the purchase price allocation is not yet                available.  Final allocation of the purchase price will be                completed as soon as this information is                available.   |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                September                2005, BMC West acquired a truss manufacturing business in McCall,                Idaho                for $1.3 million in                cash.   |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                June 2005,                BMC Construction acquired a stucco business in Las Vegas, Nevada                for $5.9                million in cash.   |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                June 2004,                BMC West acquired a framing business in Denver, Colorado for $0.8                million                in cash.   |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                October                2004, BMC Construction acquired a window installation business in                Napa,                California for $1.8 million in                cash.   |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                March                2004, BMC Construction acquired a distribution facility in Tucson,                Arizona                for $4.0 million in                cash.   |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                January                2003, BMC Construction acquired a 60% interest in WBC Construction,                LLC                (WBC Construction) for $22.9 million in cash and the issuance of                70,053                common shares.  In August 2005, BMC Construction acquired an                additional 20% interest for approximately $15.0 million in                cash.  An additional cash payment of approximately $8.1 million                was recorded and will be required based on operating                performance.  The remaining 20% interest is owned by Willard                Brothers Construction, Inc. and is recognized as minority                interest.  WBC Construction provides concrete block masonry and                concrete services to high-volume production homebuilders in                Florida.  Information required to complete the purchase price                allocation for the additional 20% interest is not yet                available.  Final allocation of the purchase price will be                completed as soon as this information is                available.   |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

| ·   | In                July 2005,                BMC Construction acquired a 51% interest in BBP Companies for $9.2                million                in cash and 16,836 common shares.  The remaining 49% is owned by                BBP Concrete and is recognized as minority interest.  BBP                Companies provide concrete services to high-volume production homebuilders                in Arizona.  Information required to complete the purchase price                allocation is not yet available.  Final allocation of the                purchase price will be completed as soon as this information is                available.   |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                April                2005, BMC Construction acquired a 60% interest in Riggs Plumbing,                LLC                (Riggs Plumbing) for $17.8 million in cash.  In July 2005, we                acquired an additional 13% for $1.4 million in cash.  The                remaining 27% is owned by Riggs & Associates, LLC and is recognized as                minority interest.  Riggs Plumbing provides plumbing services to                high-volume production builders in the Phoenix and Tucson                markets.   |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                January                2005, BMC Construction acquired a 51% interest in RCI Construction,                LLC                (RCI Construction) for $4.9 million in cash.  The remaining 49%                is owned by Residential Carpentry, Inc. and is recognized as minority                interest.  RCI Construction provides framing services to                high-volume production builders in the greater Chicago                area.   |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                September                2004, our majority-owned subsidiary WBC Construction acquired a 51%                interest in A-1 Building Components, LLC (A-1 Truss) for $2.3 million                in                cash.  The remaining 49% is owned by A-1 Roof Trusses, Ltd.,                Company and is recognized as minority interest.  A-1 Truss                manufactures trusses in Fort Pierce,                Florida.   |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                July 2002,                BMC Construction acquired a 51% interest in KBI Norcal for $5.8 million                in                cash, $0.8 million of assumed debt and the issuance of 34,364 common                shares.  The remaining 49% interest was owned by RJ Norcal, LLC                and recognized as minority interest.  In July 2004, BMC                Construction acquired the remaining 49% of KBI Norcal for $14.0 million                in                cash.  KBI Norcal provides framing services to high-volume                production homebuilders in northern                California. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                October                2003, BMC Construction acquired a 67.33% interest in WBC Mid-Atlantic                for                $5.1 million in cash and 15,059 common shares.  The remaining                32.67% is owned by ANM Carpentry, Inc. and is recognized as minority                interest.  WBC Mid-Atlantic provides framing services to                high-volume production builders in Delaware, Maryland and                Virginia. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

|                                                        | **2005** |              | 2004   |   |          | **2005** |                                                                      | 2004   |
|-------------------------------------------------------------|----------|-------------------|--------|--------|---------------|----------|---------------------------------------------------------------------------|--------|
| Cash                and cash                equivalents     | **$**    | **1,644 **   |   | $      | ―  |     | Accounts                payable                                           | **$**  | **46,078 ** |   | $ | 1,265  |
| Receivables                                                 |     | **106,407 ** |   |   | 4,594    |     | Accrued                compensation                                       |   | **7,385 ** |   |   | 194  |
| Inventory                                                   |     | **11,559 **  |   |   | 1,987    |     | Insurance                deductible reserves                              |   | **3,192 ** |   |   | ―  |
| Unbilled                receivables                         |     | **30,554 **  |   |   | ―  |     | Other                accrued                liabilities                   |   | **30,014 ** |   |   | 1,071  |
| Deferred                income taxes                        |     | **(6,527)**       |   |   | ―  |     | Billings                in                excess of costs and             |   |   |   |   |   |
| Prepaid                expenses and other                   |     | **4,057 **   |   |   | 127      |     |    estimated                earnings                       |   | **24,436 ** |   |   | ―  |
|                                                        |     |              |   |   |          |     | Current                portion oflong-term debt                      |   | **5,605 ** |   |   | 1,131  |
|    Total                current assets  |     | **147,694 ** |   |   | 6,708    |     |    Total                current liabilities                |   | **116,710 ** |   |   | 3,661  |
|                                                        |     |              |   |   |          |     |                                                                      |   |   |   |   |   |
| Property                and                equipment        |     | **33,406 **  |   |   | 3,766    |     | Deferred                income taxes                                      |   | **8,528 ** |   |   | ―  |
| Other                long-term assets                       |     | **18 **      |   |   | 528      |     | Long-term                debt                                             |   | **10,048 ** |   |   | ―  |
| Other                intangibles, net                       |     | **46,824 **  |   |   | 5,868    |     | Other                long-term liabilities                                |   | **― ** |   |   | 1,124  |
| Goodwill                                                    |     | **109,982 ** |   |   | 8,483    |     |                                                                      |   |   |   |   |   |
|                                                        |     |              |   |   |          |     | Minority                interests                                         |   | **(3,172)** |   |   | (2,081) |
|    Total                assets               | **$**    | **337,924 ** |   | $      | 25,353   |     |    Total                liabilities and minority interests | **$**  | **132,114 ** |   | $ | 2,704  |

|                                                   |   | **2005**      |   |   | 2004      |
|--------------------------------------------------------|--------|---------------|--------|--------|-----------|
| Sales                - as                reported      | **$**  | **2,912,160** |   | $      | 2,091,025 |
| Pro                forma                Sales          | **$**  | **3,265,401** |   | $      | 2,734,854 |
|                                                   |   |          |   |   |      |
| Net                income -                as reported | **$**  | **129,507**   |   | $      | 53,910    |
| Pro                forma Net                income     | **$**  | **145,471**   |   | $      | 71,646    |
|                                                   |   |          |   |   |      |
| Net                income                per share:    |   |          |   |   |      |
|    Diluted                - as reported |   | **$8.82**     |   |   | $3.87     |
|    Pro                forma Diluted     |   | **$9.91**     |   |   | $5.14     |

***Subsequent      to December 31, 2005***

----

INDEX

|                            | **Call                Options**                                   |                                                              | **Put                Options**                                  |
|---------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------------------|
| BBP                Companies    | July                2008                through June 2015         |                                                              | July                2008                through June 2015       |
| Riggs                Plumbing   | April                2008                through March 2013       |                                                              | April                2008                through March 2013     |
| RCI                Construction | January                2008                through January 2012   |                                                              | January                2008                through January 2012 |
| A-1                Truss        | September                2004 through August 2014                 | September                2009 through August 2014                 |
| WBC                Mid-Atlantic | October                2003                through September 2010 | December                2006                through December 2008 |
| WBC                Construction | January                2006                through January 2009   |                                                              | January                2007                through January 2009 |

***5.***
***Marketable      Securities***

|                                                    |   | **2005**   |   |   | 2004   |
|---------------------------------------------------------|--------|------------|--------|--------|--------|
| Cash                and cash                equivalents | **$**  | **415**    |   | $      | 112    |
| U.S.                government and agencies             |   | **7,838**  |   |   | 6,524  |
| Asset                backed                securities   |   | **13,391** |   |   | 7,816  |
| Corporate                securities                     |   | **10,876** |   |   | 4,524  |
|                                                    | **$**  | **32,520** |   | $      | 18,976 |

|                                                   |   | **2005**   |   |   | 2004   |
|--------------------------------------------------------|--------|------------|--------|--------|--------|
| Less                than one                year       | **$**  | **3,645**  |   | $      | 2,216  |
| Due                in one to                two years  |   | **9,893**  |   |   | 5,484  |
| Due                in two to                five years |   | **18,982** |   |   | 11,276 |
|                                                   | **$**  | **32,520** |   | $      | 18,976 |

----

INDEX

***6.***
***Intangible      Assets and Goodwill***

|                                                      | **December                31, 2005**        |
|-----------------------------------------------------------|---------------------------------------------|
|                                                      | **Gross****Carrying                Amount** |   | **Accumulated****Amortization** |   | **Net                Carrying****Amount** |
|    Customer                relationships   | **$**                                       | **58,926 ** |   | **$** | **(9,165) ** |   | **$** | **49,761 ** |
|    Covenants                not to compete |                                        | **7,541 ** |   |   | **(2,307) ** |   |   | **5,234 ** |
|    Trade                names              |                                        | **204 ** |   |   | **(91) ** |   |   | **113 ** |
|    Other                                   |                                        | **146 ** |   |   | **(27) ** |   |   | **119 ** |
|                                                      | **$**                                       | **66,817 ** |   | **$** | **(11,590) ** |   | **$** | **55,227 ** |

|                                                      | **December                31, 2004**        |
|-----------------------------------------------------------|---------------------------------------------|
|                                                      | **Gross****Carrying                Amount** |   | **Accumulated**** Amortization** |   | **Net                Carrying****Amount** |
|    Customer                relationships   | $                                           | 17,134  |   | $ | (5,116) |   | $ | 12,018  |
|    Covenants                not to compete |                                        | 2,919  |   |   | (1,426) |   |   | 1,493  |
|    Trade                names              |                                        | 204  |   |   | (23) |   |   | 181  |
|    Other                                   |                                        | 500  |   |   | (500) |   |   | ―  |
|                                                      | $                                           | 20,757  |   | $ | (7,065) |   | $ | 13,692  |

|                                                       | **BMC                West** |             | **BMC****Construction** |   | **Total**         |
|------------------------------------------------------------|-----------------------------|------------------|-------------------------|--------|-------------------|
| Balance                at                December 31, 2003 | $                           | 20,830      |                    | $      | 51,915       |   | $ | 72,745  |
| Goodwill                acquired                           |                        | 234         |                    |   | 8,249        |   |   | 8,483  |
| Purchase                price adjustment                   |                        | ―     |                    |   | 89           |   |   | 89  |
| Impairment                                                 |                        | (1,001)          |                    |   | ―      |   |   | (1,001) |
| Balance                at                December 31, 2004 | $                           | 20,063      |                    | $      | 60,253       |   | $ | 80,316  |
| Goodwill                acquired                           |                        | 139         |                    |   | 107,778      |   |   | 107,917  |
| Impairment                                                 |                        | ―     |                    |   | (763)             |   |   | (763) |
| **Balance                at December 31, 2005**            | **$**                       | **20,202 ** |                    | **$**  | **167,268 ** |   | **$** | **187,470 ** |

----

INDEX

***7.***
***Debt***

**As        of December 31, 2005**

|                                            |        |              |                                     |                                                         |                                   | **NotionalAmount                of** |                                | **Effective                Interest Rate** |
|-------------------------------------------------|-------------|-------------------|------------------------------------------|---------------------------------------------------------|----------------------------------------|--------------------------------------|-------------------------------------|--------------------------------------------|
|                                            | **Balance** |              | **StatedInterest                  Rate** |                                                    | **Interest                Rate Swaps** |                                 | **Average                for Year** |                                       | **As                of****December                31** |
| Revolver                                        | **$**       | **77,500 **  |                                     | **LIBOR                plus 0.75% or Prime plus 0.00%** |                                   | **$**                                | **― **                   |                                       | **5.37%** |   | **6.08%** |
|                                            |        |              |                                     |                                                    |                                   |                                 |                                |                                       |   |   |   |
| Term                note                        |        | **75,000 **  |                                     | **LIBOR                plus 0.75% or Prime plus 0.00%** |                                   |                                 | **― **                   |                                       | **4.52%** |   | **5.28%** |
|                                            |        |              |                                     |                                                    |                                   |                                 |                                |                                       |   |   |   |
| Term                note                        |        | **121,875 ** |                                     | **LIBOR                plus 1.75%**                     |                                   |                                 | **100,000 **                   |                                       | **6.23%** |   | **6.17%** |
|                                            |        |              |                                     |                                                    |                                   |                                 |                                |                                       |   |   |   |
| Other                                           |        | **13,925 **  |                                     | **Various**                                             |                                   |                                 | **― **                   |                                       | **―  ** |   | **―  ** |
|                                            |        |              | **288,300 **                        |                                                    |                                   |                                 | **$**                               | **100,000 **                          |   |   |   |   |
|                                            |        |              |                                     |                                                    |                                   |                                 |                                |                                       |   |   |   |   |
| Less:  Current                portion |        | **10,131 **  |                                     |                                                    |                                   |                                 |                                |                                       |   |   |   |
|                                            |        | **$**             | **278,169 **                        |                                                    |                                   |                                 |                                |                                       |   |   |   |   |

**As          of December 31, 2004**

|                                              |        |          |                                         |                                                       |                                     | **NotionalAmount                  of** |                                  | **Effective                  Interest Rate** |
|---------------------------------------------------|-------------|---------------|----------------------------------------------|-------------------------------------------------------|------------------------------------------|----------------------------------------|---------------------------------------|----------------------------------------------|
|                                              | **Balance** |          | **StatedInterest                      Rate** |                                                  | **Interest                  Rate Swaps** |                                   | **Average                  for Year** |                                         | **As                  of****December                  31** |
| Revolver                                          | $           | 81,200   |                                         | LIBOR                  plus 1.75% or Prime plus 0.50% |                                     | $                                      | ―                          |                                         | 4.88% |   | 5.25% |
|                                              |        |          |                                         |                                                  |                                     |                                   |                                  |                                         |   |   |   |
| Term                  note                        |        | 123,125  |                                         | LIBOR                  plus 2.75% or Prime plus 2.00% |                                     |                                   | 100,000                          |                                         | 5.65% |   | 6.80% |
|                                              |        |          |                                         |                                                  |                                     |                                   |                                  |                                         |   |   |   |
| Other                                             |        | 5,498    |                                         | Various                                               |                                     |                                   | ―                          |                                         | ―   |   | ―   |
|                                              |        |          | 209,823                                 |                                                  |                                     |                                   | $                                     | 100,000                                 |   |   |   |   |
|                                              |        |          |                                         |                                                  |                                     |                                   |                                  |                                         |   |   |   |   |
| Less:  Current                  portion |        | 3,404    |                                         |                                                  |                                     |                                   |                                  |                                         |   |   |   |
|                                              |        | $             | 206,419                                 |                                                  |                                     |                                   |                                  |                                         |   |   |   |   |

***Revolver***

----

INDEX

***Term      Notes***

***Other***

***Expansion      of Credit Facility, Covenants and Maturities***

| 2006       | $      | 10,131  |
|------------|--------|---------|
| 2007       |   | 13,914  |
| 2008       |   | 14,073  |
| 2009       |   | 77,775  |
| 2010       |   | 171,851 |
| Thereafter |   | 556     |
|       | $      | 288,300 |

***Hedging      Activities***

----

INDEX

***8.***
***Shareholders’      Equity***

***Preferred      Shares***

***Common      Shares***

| ·   | $0.15                per                share in third quarter of 2005 |
|--------------------|------------------------------------------------------------------------|

| ·   | $0.10                per                share in second quarter of 2005 |
|--------------------|-------------------------------------------------------------------------|

| ·   | $0.08                per                share in third quarter of 2004 |
|--------------------|------------------------------------------------------------------------|

| ·   | $0.06                per                share in fourth quarter of 2003 |
|--------------------|-------------------------------------------------------------------------|

| ·   | $0.05                per                share in fourth quarter 2002 (initial                dividend) |
|--------------------|--------------------------------------------------------------------------------------------------------|

|                                               | **Unissued                Shares** |
|----------------------------------------------------|------------------------------------|
| Employee                Stock Purchase Plan        | 67,298                             |
| 2004                Incentive and Performance Plan | 642,450                            |

***Shareholders’      Rights Plan***

----

INDEX

***Cash      Equity Plan***

***Employee      Stock Purchase Plan***

***Share      Option Plans and Share Plans***

----

INDEX

***2004      Incentive and Performance Plan***

----

INDEX

|                                                                                                            |                                       | **2005**            |   | 2004                                         |         | 2003            |
|-----------------------------------------------------------------------------------------------------------------|--------------------------------------------|---------------------|--------|----------------------------------------------|--------------|-----------------|
|                                                                                                            |                                       | **Shares**          |   | **Weighted****Average****Exercise****Price** |         | **Shares**      |   | **Weighted****Average****Exercise****Price** |   | **Shares** |   | **Weighted                Average Exercise Price** |
| Balance                at                beginning of the year                                                  |                                       | **1,377,898 ** |   | **$12.87**                                   |         | 1,521,177  |   | $12.20 |   | 1,515,183  |   | $11.96 |
|    Options                granted                                                                |                                       | **212,000 **   |   | **$45.75**                                   |         | 304,500    |   | $16.83 |   | 185,750  |   | $13.92 |
|    Options                exercised                                                              |                                       | **(430,692)**       |   | **$11.39**                                   |         | (412,364)       |   | $12.15 |   | (88,547) |   | $10.10 |
|    Options                forfeited                                                              |                                       | **(9,250)**         |   | **$16.81**                                   |         | (35,415)        |   | $26.56 |   | (91,209) |   | $13.79 |
| Balance                at                end of the year                                                        |                                       | **1,149,956 ** |   | **$19.46**                                   |         | 1,377,898  |   | $12.87 |   | 1,521,177  |   | $12.20 |
|                                                                                                            |                                       |                |   |                                         |         |            |   |   |   |   |   |   |
| Exercisable                at end of the year                                                                   |                                       | **712,650 **   |   | **$12.63**                                   |         | 956,650    |   | $11.53 |   | 1,158,540  |   | $12.22 |
| Weighted                average fair value of    options granted at fair                value    |                                       | **$24.69 **    |   |                                         |         | $9.64      |   |   |   | $8.87  |   |   |
| Weighted                average fair value of    options granted above fair                value | **$    ― ** |                |   |                                         | $10.31  |            |   |   | $ ―   |   |   |

| ·   | expected                term                of approximately 6.8 years for 2005, 7.5 years for 2004 and 9 years                for                2003 |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | dividend                yield of 0.84% in 2005, 1.51% in 2004 and 1.52% in                2003 |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | expected                share price volatility of 54.2% in 2005, 54.3% in 2004 and 55.0%                in                2003 |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | risk-free                interest rates of 4.1% in 2005, 4.6% in 2004 and 3.9% in                2003 |
|--------------------|-------------------------------------------------------------------------------------------------------|

|                                          |   | **Options                  Outstanding**  |   | **Options                  Exercisable**                           |
|-----------------------------------------------|--------|------------------------------------------------|--------|-------------------------------------------------------------------------|
| **Range                  of Exercise Prices** |   | **Options****Outstanding**                     |   | **Weighted****Average****Contractual****Life                  (Years)** |   | **Weighted****Average****Exercise                  Price** |   | **Options****Exercisable** |   | **Weighted****Average****Exercise                  Price** |
|  $9.69                  to $13.93        |   | 509,577                                        |   | 5.0                                                                     |   | $11.54 |   | 464,015 |   | $11.30 |
| $14.00                  to $19.50             |   | 428,379                                        |   | 6.2                                                                     |   | $15.86 |   | 248,635 |   | $15.10 |
| $45.54                  to $56.72             |   | 212,000                                        |   | 6.1                                                                     |   | $45.75 |   |  ― |   |                        ― |
|  $9.69                  to $56.72        |   | 1,149,956                       |   | 5.7                                                                     |   | $19.46 |   | 712,650 |   | $12.63 |

|                                                                                     |   | **Number                of Securities to be Issued Upon Exercise of Outstanding Options,                Warrants                and Rights** |   | **Weighted                Average Exercise Price of Outstanding Options, Warrants and                Rights** |   | **Number                of Securities Remaining Available for Future Issuance Under Equity                Compensation Plans** |   |
|------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity                compensation plans approved                by security holders     |   | 1,228,706                                                                                                                                    |   | $21.15                                                                                                        |   | 642,450                                                                                                                        |   |
| Equity                compensation plans not approved                by security holders |   |                         50,000(1)                                                                    |   | $12.50                                                                                                        |   |                          ―                                                  |   |
|       Total                                                |   | 1,278,706                                                                                                                                    |   | $20.81                                                                                                        |   | 642,450                                                                                                                        |   |
|                                                                                     |   |                                                                                                                                         |   |                                                                                                          |   |                                                                                                                           |   |

|   | (1) | In                February                1997, the Board of Directors authorized issuance of these options                as an                additional incentive to attract a member of senior                management.  The exercise price was equal to the fair market                value of the shares on the date the options were granted.  These                options vested in February 2002 and expire 10 years from the date                of                grant. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

***9.***
***Income        Taxes***

|                                   |   | **2005**     |       | 2004         |   | 2003         |   |
|----------------------------------------|--------|--------------|------------|--------------|--------|--------------|--------|
| Current                  income taxes  |   |    |       |    |   |    |   |
|    Federal              |   | **$**        | **72,650** |         | $      | 37,185       |   | $ | 8,258 |   |
|    State                |   |         | **10,738** |         |   | 5,503        |   |   | 588 |   |
|                                   |   |         | **83,388** |         |   | 42,688       |   |   | 8,846 |   |
|                                   |   |         |       |         |   |         |   |   |   |   |
| Deferred                  income taxes |   |         |       |         |   |         |   |   |   |   |
|    Federal              |   |         | **(3,157** | **)**        |   | (6,809       | )      |   | 2,240 |   |
|    State                |   |         | **(316**   | **)**        |   | (681         | )      |   | 316 |   |
|                                   |   |         | **(3,473** | **)**        |   | (7,490       | )      |   | 2,556 |   |
|                                   |   |         |       |         |   |         |   |   |   |   |
|                                   |   | **$**        | **79,915** |         | $      | 35,198       |   | $ | 11,402 |   |

|                                                                     |   | **2005** |     | 2004   |   | 2003    |   |
|--------------------------------------------------------------------------|--------|----------|----------|--------|--------|---------|--------|
| Statutory                rate                                            |   |     | **35.0** | **%**  |   | 35.0    | %      |   | 35.0 | % |
| State                income                taxes, net of federal benefit |   |     | **3.5**  |   |   | 3.3     |   |   | 1.7 |   |
| Non-deductible                items                                      |   |     | **0.2**  |   |   | ― |   |   | 1.3 |   |
| Earnings                of                minority interests             |   |     | **(2.3** | **)**  |   | (2.3    | )      |   | (1.4 | ) |
| Domestic                production deduction                             |   |     | **(0.8** | **)**  |   | ― |   |   | ― |   |
| Other                                                               |   |     | **(0.1** | **)**  |   | 1.2     |   |   | ― |   |
|                                                                     |   |     | **35.5** | **%**  |   | 37.2    | %      |   | 36.6 | % |

----

INDEX

|                                                                          |   | **2005** |              | 2004   |
|-------------------------------------------------------------------------------|--------|----------|-------------------|--------|
| Deferred                tax                assets:                            |   |     |              |   |   |   |
|    Inventory                                                   |   | **$**    | **― ** |   | $ | 3,440  |
|    Other                intangibles, net                       |   |     | **― ** |   |   | 2,279  |
|    Accrued                expenses                             |   |     | **10,009 **  |   |   | 10,425  |
|    Accrued                compensation                         |   |     | **13,692 **  |   |   | 8,407  |
|    Other                                                       |   |     | **161 **     |   |   | 1,657  |
|                                                                          |   |     | **23,862 **  |   |   | 26,208  |
|                                                                          |   |     |              |   |   |   |
| Deferred                tax                liabilities:                       |   |     |              |   |   |   |
|    Inventory                                                   |   |     | **3,116 **   |   |   | ―  |
|    Deferred                costs                               |   |     | **1,889 **   |   |   | 1,952  |
|    Property                and equipment                       |   |     | **367 **     |   |   | 367  |
|    Depreciation                                                |   |     | **14,144 **  |   |   | 12,273  |
|    Other                intangibles, net                       |   |     | **5,489 **   |   |   | ―  |
|                                                                          |   |     | **25,005 **  |   |   | 14,592  |
|                                                                          |   |     |              |   |   |   |
| Net                deferred                tax (liabilities) assets           |   | **$**    | **(1,143)**       |   | $ | 11,616  |
|                                                                          |   |     |              |   |   |   |
| Classified                in                the balance sheet as:             |   |     |              |   |   |   |
|    Deferred                income tax benefit (current assets) |   | **$**    | **5,768 **   |   | $ | 11,913  |
|    Deferred                income taxes (long-term liability)  |   |     | **(6,911)**       |   |   | (297) |
|                                                                          |   | **$**    | **(1,143)**       |   | $ | 11,616  |

***10.***
***Retirement Plans***

----

INDEX

***11.***
***Financial Instruments***

***12.***
***Commitments and Contingencies***

***Operating      Leases***

***Legal      Proceedings***

***13.***
***Segment Information***

----

INDEX

|                                            | Sales  |          |  Income(1)(Loss)BeforeTaxes                and  |   | Equity                in                Net                Income |   |   | Depreciation  |   |   |              |   |   |                         |   |
|-------------------------------------------------|--------|---------------|-----------------------------------------------------------|--------|-------------------------------------------------------------------|--------|--------|---------------|--------|--------|-------------------|--------|--------|------------------------------|--------|
|                                            |   | Total         |                                                      |   | Inter-Segment                                                     |   |   | Trade         |   |   | MinorityInterests |   |   | of                Affiliates |   |   | andAmortization |   |   | Capital(2)Expenditures |   |   | Assets |   |
| **Year                Ended December 31, 2005** |   |          |                                                      |   |                                                              |   |   |          |   |   |              |   |   |                         |   |   |   |   |   |
| BMC                Construction                 | **$**  | **1,395,182** |                                                      | **$**  | **(1,296**                                                        | **)**  | **$**  | **1,393,886** |   | **$**  | **160,957**       |   | **$**  | **―**                  |   | **$** | **12,375** |   | **$** | **62,611** |   | **$** | **611,067** |   |
| BMC                West                         |   | **1,519,903** |                                                      |   | **(1,629**                                                        | **)**  |   | **1,518,274** |   |   | **151,030**       |   |   | **―**                  |   |   | **14,988** |   |   | **17,335** |   |   | **447,619** |   |
| Corporate                                       |   | **―**   |                                                      |   | **―**                                                       |   |   | **―**   |   |   | **(72,631**       | **)**  |   | **―**                  |   |   | **704** |   |   | **―** |   |   | **91,839** |   |
|                                            | **$**  | **2,915,085** |                                                      | **$**  | **(2,925**                                                        | **)**  | **$**  | **2,912,160** |   |   | **239,356**       |   | **$**  | **―**                  |   | **$** | **28,067** |   | **$** | **79,946** |   | **$** | **1,150,525** |   |
| Interest                Expense                 |   |          |                                                      |   |                                                              |   |   |          |   |   | **14,420**        |   |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                            |   |          |                                                      |   |                                                              |   |   |          |   | **$**  | **224,936**       |   |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                            |   |          |                                                      |   |                                                              |   |   |          |   |   |              |   |   |                         |   |   |   |   |   |   |   |
| **Year                Ended December 31, 2004** |   |          |                                                      |   |                                                              |   |   |          |   |   |              |   |   |                         |   |   |   |   |   |
| BMC                Construction                 | $      | 753,956       |                                                      | $      | (255                                                              | )      | $      | 753,701       |   | $      | 59,689            |   | $      | ―                      |   | $ | 8,216 |   | $ | 14,382 |   | $ | 268,498 |   |
| BMC                West                         |   | 1,338,470     |                                                      |   | (1,146                                                            | )      |   | 1,337,324     |   |   | 96,083            |   |   | ―                      |   |   | 14,599 |   |   | 17,036 |   |   | 409,160 |   |
| Corporate                                       |   | ―       |                                                      |   | ―                                                           |   |   | ―       |   |   | (47,664           | )      |   | ―                      |   |   | 497 |   |   | ― |   |   | 65,386 |   |
|                                            | $      | 2,092,426     |                                                      | $      | (1,401                                                            | )      | $      | 2,091,025     |   |   | 108,108           |   | $      | ―                      |   | $ | 23,312 |   | $ | 31,418 |   | $ | 743,044 |   |
| Interest                Expense                 |   |          |                                                      |   |                                                              |   |   |          |   |   | 13,560            |   |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                            |   |          |                                                      |   |                                                              |   |   |          |   | $      | 94,548            |   |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                            |   |          |                                                      |   |                                                              |   |   |          |   |   |              |   |   |                         |   |   |   |   |   |   |   |   |   |   |
| **Year                Ended December 31, 2003** |   |          |                                                      |   |                                                              |   |   |          |   |   |              |   |   |                         |   |   |   |   |   |
| BMC                Construction                 | $      | 408,929       |                                                      | $      | (762                                                              | )      | $      | 408,167       |   | $      | 18,954            |   | $      | 1,431                        |   | $ | 4,410 |   | $ | 5,555 |   | $ | 187,479 |   |
| BMC                West                         |   | 1,007,373     |                                                      |   | (469                                                              | )      |   | 1,006,904     |   |   | 54,826            |   |   | ―                      |   |   | 15,315 |   |   | 12,121 |   |   | 390,764 |   |
| Corporate                                       |   | ―       |                                                      |   | ―                                                           |   |   | ―       |   |   | (33,351           | )      |   | ―                      |   |   | 1,060 |   |   | ― |   |   | 25,956 |   |
|                                            | $      | 1,416,302     |                                                      | $      | (1,231                                                            | )      | $      | 1,415,071     |   |   | 40,429            |   | $      | 1,431                        |   | $ | 20,785 |   | $ | 17,676 |   | $ | 604,199 |   |
| Interest                Expense                 |   |          |                                                      |   |                                                              |   |   |          |   |   | 9,279             |   |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                            |   |          |                                                      |   |                                                              |   |   |          |   | $      | 31,150            |   |   |                         |   |   |   |   |   |   |   |   |   |   |

|   | (1) | See                Note 3                for an explanation of asset impairments affecting our                segments. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Property                and                equipment from acquisitions are included as capital                expenditures. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

----

INDEX

***14.  Quarterly      Results of Operations (unaudited)***

|                                                                     | **Fourth** |                                          | **Third** |   | **Second**                    |   | **First** |
|--------------------------------------------------------------------------|------------|-----------------------------------------------|-----------|--------|-------------------------------|--------|-----------|
| **2005**                                                                 |       |                                          |      |   |                          |   |      |
| **   Sales**                                              | **$**      | **817,883                   ** |      | **$**  | **819,828   ** |   | **$**     | **701,521                   ** |   | **$** | **572,928**                    |
| **   Income                from operations**              | **$**      | **62,336                   **  |      | **$**  | **75,820   **  |   | **$**     | **60,892                   ** |   | **$** | **40,308**                    |
| **   Net                income**                          | **$**      | **33,481**(2)                                 |      | **$**  | **41,564**     |   | **$**     | **33,314**(1) |   | **$** | **21,148**                    |
|                                                                     |       |                                          |      |   |                          |   |      |   |   |   |   |
| **   Net                income per diluted common share** |       | **$2.25                   **   |      |   | **$2.81   **   |   |      | **$2.28                   ** |   |   | **$1.47**                    |
| **   Common                share prices:**                |       |                                          |      |   |                          |   |      |   |   |   |   |
| **High**                                                                 |       | **$96.22                   **  |      |   | **$97.31   **  |   |      | **$72.26                   ** |   |   | **$49.73**    |
| **Low**                                                                  |       | **$68.21                   **  |      |   | **$69.36   **  |   |      | **$44.00                   ** |   |   | **$34.00**    |
|                                                                     |       |                                          |      |   |                          |   |      |   |   |   |   |
| 2004                                                                     |       |                                          |      |   |                          |   |      |
|    Sales                                                  | $          | 539,309                        |      | $      | 591,480        |   | $         | 543,393                    |   | $ | 416,843                    |
|    Income                from operations                  | $          | 35,904                         |      | $      | 35,080         |   | $         | 26,473                    |   | $ | 10,651                    |
|    Net                income                              | $          |                  19,046(4)               |      | $      | 18,096         |   | $         | 12,580                    |   | $ | 4,188(3) |
|                                                                     |       |                                          |      |   |                          |   |      |   |   |   |   |
|    Net                income per diluted common share     |       | $1.34                          |      |   | $1.29          |   |      | $0.92                    |   |   | $0.31                    |
|    Common                share prices:                    |       |                                          |      |   |                          |   |      |   |   |   |   |
| High                                                                     |       | $38.94                         |      |   | $27.65         |   |      | $19.28                    |   |   | $18.33                    |
| Low                                                                      |       | $25.62                         |      |   | $16.97         |   |      | $15.70                    |   |   | $14.90                    |

|   | (1) | Includes                impairment of $0.3 million net of tax for certain customer relationships                of BMC Construction. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes                impairment of $0.5 million net of tax for goodwill of BMC                Construction. |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (3) | Includes                impairment of $0.8 million net of tax for certain properties of BMC                West. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (4) | Includes                impairment of $0.6 million net of tax for goodwill of BMC West and                a $3.8                million net of tax reduction of expenses for lower than expected                insurance                costs. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

**Management’s      Report on Internal Control Over Financial Reporting**

*Internal      Control - Integrated Framework *

| Date:  February                24, 2006 | */s/                Robert E. Mellor*                                                                                                    |   |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                              | Robert                E.                MellorChairman                of                the Board, President and Chief Executive Officer |

| Date:  February                24, 2006 | */s/                William M. Smartt*                                                                                         |   |
|---------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                              | William                M.                SmarttSenior                Vice                President and Chief Financial Officer |

----

INDEX

**Report      of Independent Registered Public Accounting Firm**

----

INDEX

**Report      of Independent Registered Public Accounting Firm**

----

INDEX

----

INDEX

**Report      of Independent Registered Public Accounting Firm**

----

INDEX

**ITEM      9.  Changes in and Disagreements with Accountants on Accounting and      Financial** **Disclosure**

**ITEM      9A.  Controls and Procedures** 

**Conclusion      Regarding the Effectiveness of Disclosure Controls and      Procedures**

**Changes      in Internal Controls**

**Management’s      Report on Internal Control Over Financial Reporting**

**Report      of Independent Registered Public Accounting Firm on Internal Control Over      Financial Reporting**

**ITEM      9B.  Other Information**

----

INDEX

**PART      III**

**ITEM      10.  Directors and Executive Officers of the      Registrant**

**Directors      **

|  **Name**                                       |  **Age** |  **Position                and Business Experience**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|------------------------------------------------------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Robert                E.                Mellor |  62      | Mr.                  Mellor                  became Chairman of the Board of Directors in 2002 and has been                  President                  and Chief Executive Officer since 1997. He has been a director                  since 1991.                  He was previously Of Counsel with the law firm of Gibson, Dunn&                  Crutcher LLP from 1990 to 1997. He is a director for Coeur d’Alene Mines                  Corporation, The Ryland Group, Monro Muffler Brake and the California                  Chamber of Commerce. He is also on the board of councilors of                  Save-the-Redwoods League. He does not serve on the audit committee                  of any                  of these boards. Mr. Mellor intends to remove himself as a director                  from                  one of these boards in 2006.                                                                                                                                                                                                         |
|                                                 |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Alec                F.                Beck     |  49      | Mr.                  Beck has                  served as a director since 1996. He is President of Hogan’s Alley, Inc.,                  since 2002, which is the general partner of Lithoprint Co., a printing                  company, and since 1998, AGC Partners, Ltd., an investment partnership                  with operations in Austin, Texas.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                 |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Sara                L.                Beckman  |  49      | Dr.                  Beckman                  has served as a director since 2002. She is a faculty member of                  the                  Operations and Information Technology Management group at the Haas                  School                  of Business at University of California - Berkeley where she has                  been for                  nearly twenty years. Her teaching and research focus on operations                  strategy and innovation management. She has also worked in several                  corporate positions at Hewlett-Packard Company, and as a consultant                  for                  Booz, Allen and Hamilton.                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                 |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Eric                S.                Belsky   |  44      | Dr.                  Belsky is                  nominated for election to the board for the first time. He is a                  specialist                  in housing finance, economics and policy. He has nearly 20 years                  experience conducting research on a wide range of housing and urban                  topics                  for public and private sector organizations and clients. He currently                  is                  the Executive Director of the Joint Center for Housing Studies                  at Harvard                  University and has been for over 5 years. Since 2004, he has been                  a                  Lecturer in the Harvard Graduate School of Design. He also served                  as                  Research Director for the Millennial Housing Commission 2001-2002,                  a                  bipartisan commission appointed by the United States Congress.                  Dr. Belsky                  also serves as a director of Champion Enterprises,                  Inc. |

----

INDEX

| James                K.                Jennings, Jr. | 64     | Mr.                  Jennings                  has served as a director since 2003. Since January 2005, Mr. Jennings                  has                  served as Executive Vice President and Secretary of both Ashbrook                  Simon-Hartley GP, LLC, and Ashbrook Simon-Hartley Operations GP,                  LLC, the                  general partners of limited partnerships which own the assets of                  a                  manufacturer of waste water treatment equipment with operations                  in the                  U.S., U.K. and Chile. He is Executive Vice President, Chief Financial                  Officer and Director of Atreides Capital, LLC, a private equity                  investment                  firm that specializes in the acquisition and operation of middle                  market                  manufacturing and distribution companies. He previously served                  as                  Executive Vice President, Chief Financial Officer and Director                  of                  Consolidation Partners, L.L.C., a privately-held merchant banking                  organization. Prior to that, he served as Executive Vice President                  and                  Chief Financial Officer of Loomis, Fargo & Co. and its predecessor                  organization, a cash-in-transit service provider, from 1994 to                  January                  2003.  |
|------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Norman                J.                Metcalfe     | 63     | Mr.                  Metcalfe                  is nominated for election to the board for the first time. For                  several                  years he has managed his own investment and real estate business.                  He has                  served as Vice Chairman and Chief Financial Officer of The Irvine                  Company,                  one of the nation's largest real estate and community development                  companies. Mr. Metcalfe also serves on the boards of The Ryland                  Group and                  The Tejon Ranch Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| R.                Scott                Morrison, Jr. | 66     | Mr.                  Morrison                  has served as a director since 2004. For over 5 years, he has been                  the                  owner and President of Morrison Properties, a real estate development                  firm, and a partner in City Center Business Offices, a company                  that rents                  business suites on a short-term basis and is based in Fort Lauderdale,                  Florida. He is formerly a partner and divisional President for                  the Florida                  based Arvida Corporation, a real estate firm. Mr. Morrison is also                  a                  development principal in the Boca Raton Innovation Center now known                  as the                  Florida Atlantic Research Park. Mr. Morrison was also a limited                  partner in                  Memphis Prince, L.P., d/b/a Audubon Park Place, which owns a 120                  unit                  apartment building in Memphis, Tennessee, until 2005 when it was                  sold and                  he served as the President of the general partner, RSM II, Inc,                  until 2005                  when it was dissolved. The limited partnership filed for protection                  under                  Chapter 11 of the federal bankruptcy laws in late 2003 and the                  court                  approved a reorganization plan late in 2004. |
|                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Peter                S.                O’Neill | 68     | Mr.                  O’Neill                  has served as a director since 1993. He is the founder of O’Neill                  Enterprises, LLC., a residential development and homebuilding company                  which he founded in 1979, and is currently chairman of PON, LLC                  and                  related companies. He currently serves on the Board of Trustees                  and as a                  member of the Governance Committee for Albertson College of Idaho.                  He is a                  member of the Urban Land Institute and is currently serving as                  a director                  of IDACORP and Idaho Power                  Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

INDEX

|                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Richard                G.                Reiten | 66     |  Mr.                  Reiten                  has served as a director since 2001. He is currently a director                  for                  Northwest Natural Gas Co. and was CEO from 2000 to 2002 as well                  as                  Chairman of the board until 2005. He is also a director of U.S.                  Bancorp,                  Regence Group, IDACORP and National Fuel and Gas. Mr. Reiten is                  past                  Chairman of the Board for the American Gas Association and serves                  on the                  board of the Associated Electric & Gas Insurance Services Limited. He                  is also a trustee of the Board of The Nature Conservancy of Oregon,                  the                  Oregon Business Council and the Oregon Community                  Foundation. |

**Executive      Officers**

|  **Name**                                        |  **Age** |  **Position                and Business Experience**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------------------------------------------------------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  Robert                E.                Mellor  |  62      |  Chairman                of the Board, President and Chief Executive OfficerMr.                  Mellor                  became Chairman of the Board of Directors in 2002 and has been                  President                  and Chief Executive Officer since 1997. He has been a director                  since 1991.                  He was previously Of Counsel with the law firm of Gibson, Dunn&                  Crutcher LLP from 1990 to 1997. He is a director for Coeur d’Alene Mines                  Corporation, The Ryland Group, Monro Muffler Brake and the California                  Chamber of Commerce. He is also on the board of councilors of                  Save-the-Redwoods League. He does not serve on the audit committee                  of any                  of these boards. Mr. Mellor intends to remove himself as a director                  from                  one of these boards in 2006. |
|                                                  |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  William                M.                Smartt |  63      |  Senior                Vice President and Chief Financial OfficerMr.                Smartt                has been a Senior Vice President and Chief Financial Officer since                April                2004.  Prior to joining the Company, he was an independent                consultant from August 2001 to March 2004.  From 1992 to 2001,                he was Executive Vice President, Chief Financial and Administrative                Officer of DHL Express, a leader in international air express                service.  His previous experience as a Chief Financial Officer                included ten years with Di Giorgio Corporation, a Fortune 500 Company,                whose product lines included the distribution of building materials,                prefabricated components and framing services.                                                                                   |
|                                                  |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  Michael                D.                Mahre  |  46      |  Senior                Vice President - Corporate Development, President and Chief Executive                Officer - BMC ConstructionMr.                Mahre was                elected a Senior Vice President in 2003.  He was elected Vice                President of Corporate Development in 2001 and Chief Executive Officer                of                BMC Construction in 2002.  He joined the Company in 1999 as                Director of Financial Planning and Analysis. Mr. Mahre was a principal                of                The Cambria Group, a private equity investment firm, from 1997 to                1998.                                                                                                                                                                                                                                                                                            |

----

INDEX

|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------------------------------------------------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Stanley                M.                Wilson   |  61 |  Senior                Vice President, President and Chief Executive Officer - BMC                WestMr.                Wilson                was elected President and CEO of BMC West in 2004 and was appointed                Senior                Vice President in 2003.  He was elected Vice President in 2000                and was General Manager of the Pacific Division of BMC West from                1993 to                2003.  Mr. Wilson has been with the company since its beginning                in 1987.  His previous experience includes 19 years with the                building materials distribution business of Boise Cascade                Corporation.   |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  Eric                R.                Beem        |  36 |  Vice                President and ControllerMr.                Beem was                appointed Vice President in January 2006 and Controller in April                2005.  He joined the Company as Accounting Manager in                1996.  Mr. Beem is a Certified Public Accountant and his                experience includes three years with an international public accounting                firm.                                                                                                                                                                                                                                                                                         |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  John                D.                Fa          |  35 |  Vice                President, Real EstateMr.                Fa joined                the company as Vice President, Real Estate in December 2005.  He                previously served from 1999 to 2005 as Associate Director for Development                at Presidio Trust in San Francisco.                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  Mark                R.                Kailer      |  52 |  Vice                President, Treasurer and Investor RelationsMr.                Kailer                has been Vice President and Treasurer since 2003.  He joined the                company in 2000 as Assistant Treasurer.  He was previously                Senior Manager of Treasury Services at Circle International Group,                a                publicly-traded global logistics company based in San Francisco,                from 1997                to 2000.                                                                                                                                                                                                                             |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  Jeffrey                F.                Lucchesi |  52 |  Senior                Vice President, Chief Information OfficerMr.                Lucchesi                joined the company in August 2004 as Senior Vice President and Chief                Information Officer.  From 2000 to 2004, he was Senior Vice                President of Worldwide Operations for Corio, Inc., an enterprise                application service provider.  Mr. Lucchesi also served from                1994 to 2000 as Vice President and Chief Information Officer for                DHL                Express, a leader in international air express                services.                                                                                                    |
|                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  Steven                H.                Pearson   |  58 |  Senior                Vice President - Human ResourcesMr.                Pearson                has been Senior Vice President of Human Resources since                2001.  From 1987 through 2001 he served as Vice President of                Human Resources.  Mr. Pearson has been with the Company since                its beginning in 1987.  His previous experience also includes 18                years in the human resource function of Boise Cascade                Corporation.                                                                                                                                                                                              |

----

INDEX

|                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------------------------------------------------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Paul                S.                Street |  57 |  Senior                Vice President, Chief Administrative Officer, General Counsel and                Corporate SecretaryMr.                Street                joined the Company in 1999 as Senior Vice President, General Counsel                and                Corporate Secretary and has been Chief Administrative Officer since                2001.  He previously served as our outside General Counsel &                Secretary while a partner of the law firm of Moffatt, Thomas, Barrett,                Rock & Fields. |

**Certain      Relationships and Legal Proceedings**

**Audit      Committee Financial Expert**

**Section      16(a) Beneficial Ownership Reporting Compliance**

**Code      of Ethics**

**ITEM      11.  Executive Compensation**

----

INDEX

**ITEM      12.** **Security      Ownership of Certain Beneficial Owners and Management and Related****Stockholder      Matters**

**ITEM      13.  Certain Relationships and Related      Transactions**

**ITEM      14.  Principal Accounting Fees and      Services**

----

INDEX

**PART      IV**

**ITEM      15.  Exhibits and Financial Statement Schedules**

| (a)                                                                                                                                                                                                                                                    | The                following                documents are filed as part of this Annual Report on Form                10-K: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                   |                                                                                                                       |   |   |   |   |   |
|                                                                                                                                                                                                                                                   | 1.                                                                                                                         | Financial                Statements as                filed under Item 8 - Financial Statements and Supplementary                Data: |
|                                                                                                                                                                                                                                                   |                                                                                                                       |   |   |   |   |   |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Consolidated                Statements of Income for the years ended December 31, 2005, 2004                and                2003 |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Consolidated                Balance Sheets as of December 31, 2005 and 2004 |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Consolidated                Statements of Shareholders’ Equity for the years ended December 31, 2005,                2004 and 2003 |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Consolidated                Statements of Cash Flows for the years ended December 31, 2005, 2004                and                2003 |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Notes                to                Consolidated Financial Statements |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Management’s                Report on Internal Control Over Financial Reporting |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Reports                of                Independent Registered Public Accounting Firms |
|                                                                                                                                                                                                                                                   |                                                                                                                       |   |   |   |
|                                                                                                                                                                                                                                                   | 2.                                                                                                                         | Financial                Statement Schedules: |   |   |   |   |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Schedule                II -                Valuation and Qualifying Accounts for the years ended December 31,                2005,                2004 and 2003                       (page 75) |
|                                                                                                                                                                                                                                                   |                                                                                                                       | ·  Report                of                Independent Registered Public Accounting Firm (page 76) |
|                                                                                                                                                                                                                                                   |                                                                                                                       |   |
| Schedules                other than those listed are omitted because they are not applicable                or the                required                information is presented in the financial statements and related                disclosures. |
|                                                                                                                                                                                                                                                   |                                                                                                                       |   |   |   |   |   |
|                                                                                                                                                                                                                                                   | 3.                                                                                                                         | Exhibits: |   |   |   |   |
|                                                                                                                                                                                                                                                   |                                                                                                                       |   |
|                                                                                                                                                                                                                                                   |                                                                                                                       | A                list of the                exhibits required to be filed as part of this report are presented                in the                Exhibit                Index                (page                77). |

----

INDEX

**Schedule      II**

**Valuation      and Qualifying Accounts**

*(thousands)*

**Deductions      to Accounts Receivable: Allowance for Returns, Discounts and Doubtful      Accounts**

| Description                                                | Balance                at Beginningof                Year | Additions                Charged to Costs                and Expenses | Additions                Charged to Other Accounts        | Deductions(1)                                      | Balance                at                End                of                Year |
|------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------|------------------------------------------------------------------------------------|
|                                                       |                                                           |                                                                       |                                                           |                                               |                                                                               |
| **Year                Ended December 31, 2005**            | **$4,367**                                                     | **$                  447    **                    | **$   ****― ****   ** | **$1,058    **                 | **$3,756    **                                                 |
| Year                Ended                December 31, 2004 | $2,425                                                         | $2,804                                                 |  $   ―           | $                 862     | $4,367                                                         |
| Year                Ended                December 31, 2003 | $2,022                                                         | $1,818                                                 |  $   ―           | $1,415                         | $2,425                                                         |

| (1)   | Represents                write-offs of uncollectible receivables, net of                recoveries. |
|-----------------|------------------------------------------------------------------------------------------------------|

----

INDEX

**Report      of Independent Registered Public Accounting Firm**

----

INDEX

**Exhibit      Index Filed with the Annual Report on Form 10-K**

**For      the Year Ended December 31, 2005**

|   |   | **Incorporated                  by Reference** |
|--------|--------|------------------------------------------------|

| **Exhibit**        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | ** ** |     |                          |                     |                                                 |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------|-------------------------------|--------------------------|------------------------------------------------------|
| **Number**         | **Exhibit                  Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |       | **Form** | **File                  No.** | **Exhibit**              | **Filing                  Date**                     |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 3.50               | Amended                  Certificate of Incorporation filed with the Delaware Secretary                  of State on                  September 23, 1997                                                                                                                                                                                                                                                                                                                                                                     |       | 8-K12G3  | 000-23135                     | 3.(i)                  1 | September                  24,                  1997 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 3.50.1             | Certificate                  of Amendment of Certificate of Incorporation of Building Materials                  Holding                  Corporation (filed with this Form)                                                                                                                                                                                                                                                                                                                                                 |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 3.60.1   | Amended                  and                  Restated By-laws                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       | 10-Q     | 000-23135                     | 3.7                      | November                  14,                  2001  |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 4.70     | Rights                  Agreement Dated September 19, 1997, as Amended November 5,                  1998                                                                                                                                                                                                                                                                                                                                                                                                                     |       | 10-K405  | 000-23135                     | 10.27                    | March                  30,                  1999     |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.10    | Amended                  and                  Restated Credit Agreement dated as of June 30, 2005 among Building                  Materials Holding Corporation, BMC West Corporation and other Subsidiary                  Guarantors, Wells Fargo Bank, National Association, as Administrative                  Agent, Co-Lead Arranger, Sole Book Runner and L/C Issuer, and Suntrust                  Bank as Co-Lead Arranger and Syndication Agent and the other financial                  institutions party hereto |       | 8-K      | 000-23135                     | 10.1                     | July                  6,                  2005       |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.20*        | Amended                  and                  Restated 1992 Non-Qualified                  Stock Plan                                                                                                                                                                                                                                                                                                                                                                                                                        |       | 10-K     | 000-23135                     | 10.33                    | March                  28,                  1997     |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.20.1*      | Non-Qualified                  Option Agreement between Michael Mahre and BMC West Corporation                  Pursuant                  to the 1992 Non-Qualified Stock Option Plan (filed with this                  Form)                                                                                                                                                                                                                                                                                                |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.21*        | Amended                  and                  Restated 1993 Employee Stock Option Plan                                                                                                                                                                                                                                                                                                                                                                                                                                       |       | 10-K     | 000-23135                     | 10.34                    | March                  28,                  1997     |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.21.1*      | Non-Statutory                  Stock Option Agreement Pursuant to the Amended and Restated 1993                  Employee                  Stock Option Plan (filed with this Form)                                                                                                                                                                                                                                                                                                                                          |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.22*        | Second                  Amended and Restated Non-Employee Director Stock Option Plan (filed                  with                  this Form)                                                                                                                                                                                                                                                                                                                                                                                |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.23*        | Building                  Materials Holding Corporation 2000 Stock Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                            |       | S-8      | 333-44260                     | 4                        | August                  22,                  2000    |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.23.1*      | Non-Statutory                  Stock Option Agreement Pursuant to the 2000 Stock Incentive Plan                  (filed                  with this Form)                                                                                                                                                                                                                                                                                                                                                                     |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.24*        | Building                  Materials Holding Corporation Employee Stock Purchase Plan                                                                                                                                                                                                                                                                                                                                                                                                                                         |       | S-8      | 333-47122                     | 4                        | October                  2,                  2000    |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.25*        | Building                  Materials Holding Corporation 2004 Incentive and Performance                  Plan                                                                                                                                                                                                                                                                                                                                                                                                                 |       | S-8      | 333-117237                    | 4                        | July                  8,                  2004       |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.25.1*      | Stock                  Option                  Agreement Pursuant to the 2004 Incentive and Performance Plan (filed                  with                  this Form)                                                                                                                                                                                                                                                                                                                                                        |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.26*             | Cash                  Equity                  Plan (filed with this Form)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.27*        | Stock                  Option                  Agreement Between Robert E. Mellor and BMC West Corporation (filed                  with                  this Form)                                                                                                                                                                                                                                                                                                                                                          |       |     |                          |                     |                                                 |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |       |     |                          |                     |                                                 |
| 10.40*        | Building                  Materials Holding Corporation 2005 Bonus Program BMHC Officers                  (filed with                  this Form)                                                                                                                                                                                                                                                                                                                                                                            |       |     |                          |                     |                                                 |

----

INDEX

|   |   | **Incorporated                    by Reference** |
|--------|--------|--------------------------------------------------|

| **Exhibit**    |                                                                                                                                                                                                                                                                                   | ** ** |     |                            |        |                                                     |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------|---------------------------------|-------------|----------------------------------------------------------|
| **Number**     | **Exhibit                    Description**                                                                                                                                                                                                                                             |       | **Form** | **File                    No.** | **Exhibit** | **Filing                    Date**                       |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.40.1*  | Incentive                      and                      Performance Compensation Pursuant to 2005 Financial                      Performance                                                                                                                                           |       | 10-Q     | 000-23135                       | 10.431      | August                      3,                      2005 |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.41*    | Building                      Materials Holding Corporation 2005 Bonus Program BMC West Senior                      Management (filed with this Form)                                                                                                                                  |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.42*         | Building                      Materials Holding Corporation 2005 Bonus Program BMC Construction                      Management (filed with this Form)                                                                                                                                 |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.43*    | Building                      Materials Holding Corporation 2005 Deferred Compensation Plan                      for                      Directors (filed with this Form)                                                                                                             |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.44*         | Building                      Materials Holding Corporation 2005 Deferred Compensation Plan                      for                      Executives (filed with this Form)                                                                                                            |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.45*    | Building                      Materials Holding Corporation General Terms and Conditions                      BMHC Officers                      and BMHC Key Management 2003 Long-Term Cash Incentive Plan                      (filed with                      this Form)           |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.46*         | Building                        Materials Holding Corporation General Terms and Conditions                        BMHC Officers                        and BMHC Key Management 2005 Long-Term Cash Incentive Plan                        (filed with                        this Form) |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.47*         | Building                      Materials Holding Corporation General Terms and Conditions                      BMHC Officers                      and BMHC Key Management 2005 Long-Term Cash Incentive Plan                      (filed with                      this Form)           |       |          |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.48*         | Building                      Materials Holding Corporation General Terms and Conditions                      BMC                      Construction Key Management 2003 Long-Term                      Cash Incentive Plan (filed with this Form)                                      |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
| 10.60*         | Building                      Materials Holding Corporation 2002 Executives Supplemental                      Retirement                      Income Plan as amended and restated December 31, 2002 (filed                      with this                      Form)                   |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |

----

INDEX

|   |   | **Incorporated                    by Reference** |
|--------|--------|--------------------------------------------------|

| **Exhibit**    |                                                                                                                                                                                                                                                                                                                                                                       | ** ** |     |                            |        |                                                     |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------|---------------------------------|-------------|----------------------------------------------------------|
| **Number**     | **Exhibit                    Description**                                                                                                                                                                                                                                                                                                                                 |       | **Form** | **File                    No.** | **Exhibit** | **Filing                    Date**                       |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.60.1*  | Building                        Materials Holding Corporation 2005 Executives Supplemental                        Retirement                        Income Plan (filed with this Form)                                                                                                                                                                                     |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.70*    | Amended                        and                        Restated Severance Plan for Certain Key Executive Officers,                        Senior                        Management and Key Employees of the Company and its Subsidiaries                        as                        Adopted by the Board of Directors on February 17,                        2000 |       | 10-K     | 000-23135                       | 10.37       | March                    31,                    2000     |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.70.1*       | First                        Amendment to the Severance Plan for Certain Executive Officers,                        Senior                        Management and Key Employees of Building Materials Holding                        Corporation,                        Effective as of June 16, 2005                                                                      |       | 8-K      | 000-23135                       | 10.46       | June                      20,                      2005  |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.80     | Amended                        Form                        of Indemnity Agreement Between the Company and its Officers                        and                        Directors                                                                                                                                                                                         |       | 10-K     | 000-23135                       | 10.7.1      | March                      26,                      2003 |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.90*         | Employment                        Agreement by and Between Robert E. Mellor and the Company                        as of June 1,                        2002                                                                                                                                                                                                               |       | 10-K     | 000-23135                       | 10.4        | March                      26,                      2003 |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.90.1*  | First                        Amendment to Employment Agreement Between Robert E. Mellor                        and the Company                        as of February 23, 2004                                                                                                                                                                                              |       | 10-K     | 000-23135                       | 10.41       | March                      15,                      2004 |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.90.2*  | Second                          Amendment to the Employment Agreement Between Robert E.                          Mellor and                          Building Materials Holding Corporation as of June 16,                          2005                                                                                                                                   |       | 8-K      | 000-23135                       | 10.45       | June                      20,                      2005  |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 10.91*         | Employment                      Agreement by and Between William M. Smartt and the Company                      as of April 1,                      2004 (filed with this Form)                                                                                                                                                                                            |       |          |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 21.0      | Subsidiaries                        of Building Materials Holding Corporation (filed with this                        Form)                                                                                                                                                                                                                                                |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |
| 23.1      | Consent                        of                        KPMG LLP (filed with this Form)                                                                                                                                                                                                                                                                                   |       |     |                            |        |                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                       |       |     |                            |        |                                                     |

----

INDEX

|   |   | **Incorporated                    by Reference** |
|--------|--------|--------------------------------------------------|

| **Exhibit**                                                                                     |                                                                                                                                                                                                                                                       | ** ** |     |                            |        |                               |
|-------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------|---------------------------------|-------------|------------------------------------|
| **Number**                                                                                      | **Exhibit                    Description**                                                                                                                                                                                                                 |       | **Form** | **File                    No.** | **Exhibit** | **Filing                    Date** |
|                                                                                            |                                                                                                                                                                                                                                                       |       |     |                            |        |                               |
| 23.2                                                                             | Consent                          of                          PricewaterhouseCoopers LLP (filed with this                          Form)                                                                                                                    |       |     |                            |        |                               |
|                                                                                            |                                                                                                                                                                                                                                                       |       |     |                            |        |                               |
| 31.1                                                                                       | Certificate                          of Chief Executive Officer Pursuant to Section 302 of the                          Sarbanes-Oxley                          Act of 2002 (filed with this Form)                                                         |       |     |                            |        |                               |
|                                                                                            |                                                                                                                                                                                                                                                       |       |     |                            |        |                               |
| 31.2                                                                                  | Certificate                          of Chief Financial Officer Pursuant to Section 302 of the                          Sarbanes-Oxley                          Act of 2002 (filed with this Form)                                                         |       |     |                            |        |                               |
|                                                                                            |                                                                                                                                                                                                                                                       |       |     |                            |        |                               |
| 32.1                                                                                  | Certifications                          of Chief Executive Officer and Chief Financial Officer                          Pursuant to Section                          906 of the Sarbanes-Oxley Act of 2002 (filed with this                          Form) |       |     |                            |        |                               |
|                                                                                            |                                                                                                                                                                                                                                                       |       |     |                            |        |                               |
| *Indicates                      a                      management contract or compensatory plan |                                                                                                                                                                                                                                                       |       |

----

INDEX

**SIGNATURES**

| Date:  February              27, 2006 | /s/ Robert E.              Mellor                                                                                                                   |
|-------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                            | Robert E.              Mellor                                                                                                                       |
|                                            | Chairman                of                the Board, President and Chief Executive Officer                (Principal  Executive Officer)  |
|                                            |                                                                                                                                                |

| Signature                                                |   |                                                                                                                                    |  Title                                     |   |   | Date |   |
|----------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------|--------|------|--------|
|                                                     |   |                                                                                                                                    |                                            |
| /s/                Robert E.                Mellor       |   | Chairman                of                the Board, President and Chief Executive Officer                (Principal Executive Officer) | February                27,                2006 |
| Robert                E.                Mellor           |   |                                                                                                                                    |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                William                M. Smartt      |   | Senior                Vice                President and Chief Financial Officer (Principal Financial                Officer)            | February                27,                2006 |
| William                M.                Smartt          |   |                                                                                                                                    |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                Eric R.                Beem           |   | Vice                President and Controller(Principal                Accounting Officer)                                               | February                27,                2006 |
| Eric                R.                Beem               |   |                                                                                                                                    |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                Alec F.                Beck           |   | Director                                                                                                                                | February                27,                2006 |
| Alec                F.                Beck               |   |                                                                                                                                    |                                            |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                Sara L.                Beckman        |   | Director                                                                                                                                | February                27,                2006 |
| Sara                L.                Beckman            |   |                                                                                                                                    |                                            |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                Eric S.                Belsky         |   | Director                                                                                                                                | February                27,                2006 |
| Eric                S.                Belsky             |   |                                                                                                                                    |                                            |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                James K.                Jennings, Jr. |   | Director                                                                                                                                | February                27,                2006 |
| James                K.                Jennings, Jr.     |   |                                                                                                                                    |                                            |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                R. Scott                Morrison, Jr. |   | Director                                                                                                                                | February                27,                2006 |
| R.                Scott                Morrison, Jr.     |   |                                                                                                                                    |                                            |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                Peter S.                O’Neill |   | Director                                                                                                                                | February                27,                2006 |
| Peter                S.                O’Neill     |   |                                                                                                                                    |                                            |
|                                                     |   |                                                                                                                                    |                                            |
| /s/                Richard                G. Reiten      |   | Director                                                                                                                                | February                27,                2006 |
| Richard                G.                Reiten          |   |                                                                                                                                    |                                            |

----

INDEX

| **List                of Exhibits Filed** |
|-------------------------------------------|
|                                      |   |
| **Exhibit**                               |   |
| **Number**                                | **Exhibit                Description** |
|                                      |   |
| 3.50.1                                    | Certificate                of Amendment of Certificate of Incorporation of Building Materials                Holding                Corporation |
|                                      |   |
| 10.20.1*                                  | Non-Qualified                Option Agreement between Michael Mahre and BMC West Corporation Pursuant                to the 1992 Non-Qualified Stock Option Plan |
|                                      |   |
| 10.21.1*                                  | Non-Statutory                Stock Option Agreement Pursuant to the Amended and Restated 1993                Employee                Stock Option Plan |
|                                      |   |
| 10.22*                                    | Second                Amended and Restated Non-Employee Director Stock Option                Plan |
|                                      |   |
| 10.23.1*                                  | Non-Statutory                Stock Option Agreement Pursuant to the 2000 Stock Incentive                Plan |
|                                      |   |
| 10.25.1*                                  | Stock                Option                Agreement Pursuant to the 2004 Incentive and Performance                Plan |
|                                      |   |
| 10.26*                                    | Cash                Equity                Plan |
|                                      |   |
| 10.27*                                    | Stock                Option                Agreement Between Robert E. Mellor and BMC West                Corporation |
|                                      |   |
| 10.40*                                    | Building                Materials Holding Corporation 2005 Bonus Program BMHC                Officers |
|                                      |   |
| 10.41*                                    | Building                Materials Holding Corporation 2005 Bonus Program BMC West Senior                Management |
|                                      |   |
| 10.42*                                    | Building                Materials Holding Corporation 2005 Bonus Program BMC Construction                Management |
|                                      |   |
| 10.43*                                    | Building                Materials Holding Corporation 2005 Deferred Compensation Plan for                Directors |
|                                      |   |
| 10.44*                                    | Building                Materials Holding Corporation 2005 Deferred Compensation Plan for                Executives |
|                                      |   |
| 10.45*                                    | Building                Materials Holding Corporation General Terms and Conditions BMHC Officers                and BMHC Key Management 2003 Long-Term Cash Incentive Plan |
|                                      |   |
| 10.46*                                    | Building                Materials Holding Corporation General Terms and Conditions BMHC Officers                and BMHC Key Management 2004 Long-Term Cash Incentive Plan |
|                                      |   |
| 10.47*                                    | Building                Materials Holding Corporation General Terms and Conditions BMHC Officers                and BMHC Key Management 2005 Long-Term Cash Incentive                Plan |
|                                      |   |
| 10.48*                                    | Building                Materials Holding Corporation General Terms and Conditions BMC                Construction Key Management 2003 Long-Term Cash Incentive                Plan |
|                                      |   |
| 10.60*                                    | Building                Materials Holding Corporation 2002 Executives Supplemental Retirement                Income Plan as Amended and Restated December 31, 2002 |
|                                      |   |
| 10.60.1*                                  | Building                Materials Holding Corporation 2005 Executives Supplemental Retirement                Income Plan |
|                                      |   |
| 10.91*                                    | Employment                Agreement by and Between William M. Smartt and the Company as of                April                1,                2004 |
|                                      |   |
| 21.0                                      | Subsidiaries                of Building Materials Holding Corporation |
|                                      |   |
| 23.1                                      | Consent                of                KPMG LLP |
|                                      |   |
| 23.2                                      | Consent                of                PricewaterhouseCoopers LLP |
|                                      |   |
| 31.1                                      | Certificate                of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002 |
|                                      |   |
| 31.2                                      | Certificate                of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002 |
|                                      |   |
| 32.1                                      | Certifications                of Chief Executive Officer and Chief Financial Officer Pursuant to                Section                906 of the Sarbanes-Oxley Act of                2002 |

----