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**FORM      10-Q**

**QUARTERLY      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) |   | (I.R.S.                Employer Identification No.) |

**Four      Embarcadero Center, Suite 3200, San Francisco, CA 94111**

**(415)      627-9100**

**N/A**

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**Back          to Table of Contents**

**FORM      10-Q**

**INDEX**

|                                                                                                                                                                               | **Page****Number** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
|                                                                                                                                                                               |               |
| **PART                I - FINANCIAL INFORMATION**                                                                                                                             | 2                  |
|                                                                                                                                                                          |               |
| **Item                1**-                Financial                Statements (unaudited)                                                                                     | 2                  |
| Consolidated                Statements of Income for the Three Months Ended                March 31, 2006 and 2005                                                            | 2                  |
| Consolidated                Balance Sheets as of March 31, 2006 and December                31, 2005                                                                          | 3                  |
| Consolidated                Statements of Shareholders’ Equity for the Three Months Ended March 31,                2006 and                2005                         | 4                  |
| Consolidated                Statements of Cash Flows for the Three Months                Ended March 31, 2006 and 2005                                                        | 5                  |
| Notes                to Consolidated Financial                Statements                                                                                                      | 6                  |
| **Item                2**                -                Management's Discussion and Analysis of Financial Condition and Results                of                Operations | 24                 |
|                                                                                                                                                                          |                    |
| **Item                3**                -                Quantitative and Qualitative Disclosures about Market                Risk                                           | 32                 |
|                                                                                                                                                                          |               |
| **Item                4**                - Controls                and Procedures                                                                                             | 33                 |
|                                                                                                                                                                          |               |
| **PART                II - OTHER INFORMATION**                                                                                                                                | 34                 |
|                                                                                                                                                                          |               |
| **Item                1**                - Legal                Proceedings                                                                                                   | 34                 |
|                                                                                                                                                                          |               |
| **Item                1A**                - Risk                Factors                                                                                                       | 34                 |
|                                                                                                                                                                          |               |
| **Item                2**                -                Unregistered Sales of Equity Securities and Use of                Proceeds                                          | 34                 |
|                                                                                                                                                                          |               |
| **Item                3**                - Defaults                Upon Senior Securities                                                                                     | 34                 |
|                                                                                                                                                                          |               |
| **Item                4**                - Submission                of Matters to a Vote of Security Holders                                                                 | 34                 |
|                                                                                                                                                                          |               |
| **Item                5**                - Other                Information                                                                                                   | 35                 |
|                                                                                                                                                                          |               |
| **Item                6**                -                Exhibits                                                                                                            | 35                 |
|                                                                                                                                                                          |               |
| **SIGNATURES**                                                                                                                                                                | 36                 |
|                                                                                                                                                                          |               |

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**Item      1 - Financial Statements**

**Building      Materials Holding Corporation**

**Consolidated      Statements of Income**

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

**(unaudited)**

|                                                                            |   |                                  |                                   |
|---------------------------------------------------------------------------------|--------|---------------------------------------|----------------------------------------|
|                                                                            |   | **Three                Months Ended** |                                   |
|                                                                            |   | **March                31**           |                                   |
|                                                                                 |   | **2006**                              |                              | **2005** |   |
| **Sales**                                                                       |   |                                  |                                   |    |   |
| Construction                services                                            |   | **$**                                 | **548,905**                            |   | $ | 280,045 |   |
| Building                products                                                |   |                                  | **335,652**                            |   |   | 292,883 |   |
| **      Total                sales**              |   |                                  | **884,557**                            |   |   | 572,928 |   |
|                                                                            |   |                                  |                                   |   |   |   |   |
| **Costs                and operating expenses **                           |   |                                  |                                   |   |   |   |   |
| Cost                of goods                sold                                |   |                                  |                                   |   |   |   |   |
| Construction                services                                            |   |                                  | **448,300**                            |   |   | 227,484 |   |
| Building                products                                                |   |                                  | **246,792**                            |   |   | 215,648 |   |
| Selling,                general and administrative expenses                     |   |                                  | **136,866**                            |   |   | 89,993 |   |
| Other                income,                net                                 |   |                                  | **(1,787**                             | **)** |   | (505 | ) |
| Total                costs                and operating expenses                |   |                                  | **830,171**                            |   |   | 532,620 |   |
|                                                                            |   |                                  |                         |   |   |     |   |
| **Income                from operations**                                       |   |                                  | **54,386**                             |   |   | 40,308 |   |
|                                                                            |   |                                  |                                   |   |   |   |   |
| Interest                expense                                                 |   |                                  | **5,590**                              |   |   | 3,198 |   |
|                                                                            |   |                                  |                                   |   |   |   |   |
| Income                before                income taxes and minority interests |   |                                  | **48,796**                             |   |   | 37,110 |   |
|                                                                            |   |                                  |                                   |   |   |   |   |
| Income                taxes                                                     |   |                                  | **17,810**                             |   |   | 12,961 |   |
|                                                                            |   |                                  |                                   |   |   |   |   |
| Minority                interests income, net of income taxes                   |   |                                  | **(2,917**                             | **)** |   | (3,001 | ) |
|                                                                            |   |                                  |                    |   |   |                     |   |
| **Net                income**                                                   |   | **$**                                 | **28,069**                             |   | $ | 21,148 |   |
|                                                                            |   |                                  |                                   |   |   |   |   |
|                                                                            |   |                                  |                                   |   |   |   |   |
| **Net                income per share:**                                        |   |                                  |                                   |   |   |   |   |
| Basic                                                                           |   |                                  | **$0.98**                              |   |   | $0.76 |   |
| Diluted                                                                         |   |                                  | **$0.95**                              |   |   | $0.73 |   |

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**Building      Materials Holding Corporation**

**Consolidated      Balance Sheets**

**(thousands,      except share data)**

**(unaudited)**

|                                                                     |   |                        |          |                           |   |                                                                                             |   |                        |                                                                                                   |                           |   |
|--------------------------------------------------------------------------|--------|-----------------------------|---------------|--------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|-----------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------|--------|
|                                                                     |   | **March                31** |          | **December                31** |   |                                                                                             |   | **March                31** |                                                                                                   | **December                31** |   |
|                                                                     |   | **2006**                    |          | **2005**                       |   |                                                                                                  |   | **2006**                    |                                                                                                   | **2005**                       |   |
| **Assets**                                                               |   |                        |          |                      |   | **Liabilities,                Minority Interests and Shareholders’                Equity** |   |                        |                                                                                                   |                      |   |
| Cash                and cash equivalents                                 |   | **$**                       | **30,270**    |                           | $      | 30,078                                                                                           |   |                        |                                                                                                   |                           |   |   |   |   |   |   |
| Marketable                securities                                     |   |                        | **8,025**     |                           |   | 3,645                                                                                            |   |                        | Accounts                payable                                                                        |                           | **$**  | **191,189** |   | $ | 146,627 |   |
| Receivables,                net of                                       |   |                        |          |                           |   |                                                                                             |   |                        | Accrued                compensation                                                                    |                           |   | **51,370** |   |   | 65,928 |   |
| allowances                of $4,534 and $3,756                           |   |                        | **412,581**   |                           |   | 363,527                                                                                          |   |                        | Insurance                deductible reserves                                                           |                           |   | **24,816** |   |   | 21,872 |   |
| Inventory                                                                |   |                        | **193,663**   |                           |   | 168,282                                                                                          |   |                        | Other                accrued liabilities                                                               |                           |   | **95,458** |   |   | 51,579 |   |
| Unbilled                receivables                                      |   |                        | **86,378**    |                           |   | 56,128                                                                                           |   |                        | Billings                in excess of costs                                                             |                           |   |   |   |   |   |   |
| Deferred                income taxes                                     |   |                        | **7,440**     |                           |   | 5,768                                                                                            |   |                        | and                estimated earnings                                                                  |                           |   | **40,454** |   |   | 33,799 |   |
| Prepaid                expenses and other                                |   |                        | **9,292**     |                           |   | 6,967                                                                                            |   |                        | Current                portion of long-term debt                                                       |                           |   | **11,939** |   |   | 10,131 |   |
| **   Total                current                assets** |   |                        | **747,649**   |                           |   | 634,395                                                                                          |   |                        | **Total                current liabilities**                                                           |                           |   | **415,226** |   |   | 329,936 |   |
|                                                                     |   |                        |          |                           |   |                                                                                             |   |                        |                                                                                                   |                           |   |   |   |   |   |   |
| Property                and equipment                                    |   |                        |          |                           |   |                                                                                             |   |                        | Deferred                income taxes                                                                   |                           |   | **8,375** |   |   | 6,911 |   |
| Land                                                                     |   |                        | **48,201**    |                           |   | 47,328                                                                                           |   |                        | Insurance                deductible reserves                                                           |                           |   | **25,125** |   |   | 20,753 |   |
| Buildings                and improvements                                |   |                        | **124,363**   |                           |   | 118,556                                                                                          |   |                        | Long-term                debt                                                                          |                           |   | **356,151** |   |   | 278,169 |   |
| Equipment                                                                |   |                        | **176,625**   |                           |   | 166,633                                                                                          |   |                        | Other                long-term liabilities                                                             |                           |   | **34,601** |   |   | 30,689 |   |
| Construction                in progress                                  |   |                        | **10,345**    |                           |   | 9,485                                                                                            |   |                        | **Total                liabilities**                                                                   |                           |   | **839,478** |   |   | 666,458 |   |
| Accumulated                depreciation                                  |   |                        | **(127,606**  | **)**                          |   | (121,525                                                                                         | )      |                        |                                                                                                   |                           |   |   |   |   |   |   |
| Marketable                securities                                     |   |                        | **24,613**    |                           |   | 28,875                                                                                           |   |                        | Minority                interests                                                                      |                           |   | **10,770** |   |   | 14,006 |   |
| Deferred                loan costs                                       |   |                        | **3,408**     |                           |   | 3,616                                                                                            |   |                        |                                                                                                   |                           |   |   |   |   |   |   |
| Other                long-term assets                                    |   |                        | **26,270**    |                           |   | 20,465                                                                                           |   |                        | Commitments                and contingentliabilities                                                   |                           |   | **―** |   |   | ― |   |
| Other                intangibles, net                                    |   |                        | **78,269**    |                           |   | 55,227                                                                                           |   |                        |                                                                                                        |                           |   |   |   |   |   |   |
| Goodwill                                                                 |   |                        | **238,162**   |                           |   | 187,470                                                                                          |   |                        | Shareholders’equity                                                                              |                           |   |   |   |   |   |   |
| **   Total                assets**                        |   | **$**                       | **1,350,299** |                           | $      | 1,150,525                                                                                        |   |                        | Common                shares, $0.001 par value:                                                        |                           |   |   |   |   |   |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | authorized                50 million                                                                   |                           |   |   |   |   |   |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | shares;                issued and                                                                      |                           |   |   |   |   |   |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | outstanding                28,939,776                                                                  |                           |   |   |   |   |   |   |
|                                                                     |   |                        |          |                           |   |                                                                                             |   |                        | and                28,758,580                shares                                                    |                           |   | **29** |   |   | 29 |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | Additional                paid-in capital                                                              |                           |   | **145,022** |   |   | 143,780 |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | Unearned                compensation                                                                   |                           |   | **―** |   |   | (2,698 | ) |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | Retained                earnings                                                                       |                           |   | **353,638** |   |   | 328,463 |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | Accumulated                other comprehensive income, net                                             |                           |   | **1,362** |   |   | 487 |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | **Total                shareholders’ equity**                                                    |                           |   | **500,051** |   |   | 470,061 |   |
|                                                                     |   |                        |          |                           |   |                                                                                             |   |                        |                                                                                                   |                           |   |   |   |   |   |   |
|                                                                          |   |                        |          |                           |   |                                                                                             |   |                        | **Total                liabilities, minority interests and shareholders’                equity** |                           | **$**  | **1,350,299** |   | $ | 1,150,525 |   |

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**Building      Materials Holding Corporation**

**Consolidated      Statements of Shareholders’Equity**

**(thousands)**

**(unaudited)**

|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |
|-----------------------------------------------------------------------|--------|--------|----------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|----------------------------------------|--------|--------|----------------------------------|--------|--------|-------------|--------|--------|-----------------------------------------------------------------------------|--------|
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | Accumulated                Other                                            |   |   |   |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | ComprehensiveIncome                (Loss)                                   |   |   |   |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | Net                UnrealizedGain                (Loss)                From |   |   |   |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | Interest                                                                    |   |   |   |   |   |   |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   | Additional                             |   |   |                             |   |   |        |   |   | Rate                                                                        |   |   |   |   |   |   |   |
|                                                                  |   |   | Common                Shares           |   |   | Paid-In                                             |   |   | Unearned                               |   |   | Retained                    |   |   |  Swap  |   |   | Marketable                                                                  |   |   |   |   |
|                                                                  |   |   | Shares                                 |   |   | Amount                                              |   |   | Capital                                |   |   | Compensation                     |   |   | Earnings    |   |   | Contracts                                                                   |   |   | Securities |   |   | Total |   |
| **Balance                at December 31, 2004**                       |   |   | **27,705**                             |   | **$**  | **28**                                              |   | **$**  | **124,580**                            |   | **$**  | **(1,383**                       | **)**  | **$**  | **205,812** |   | **$**  | **(1,362**                                                                  | **)**  | **$** | **3** |   | **$** | **327,678** |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   |   |   |
| Net                income                                             |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   | 21,148      |   |   |                                                                        |   |   |   |   |   | 21,148 |   |
| Unrealized                gain                                        |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | 2,394                                                                       |   |   |   |   |   | 2,394 |   |
| Taxes                for                unrealized gain               |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | (922                                                                        | )      |   |   |   |   | (922 | ) |
| Unrealized                loss                                        |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   | (247 | ) |   | (247 | ) |
| Tax                benefit                for unrealized loss         |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   | 95 |   |   | 95 |   |
| **Comprehensive                income**                               |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 22,468 |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   |   |   |
| Issuance                of                restricted shares           |   |   | 114                                    |   |   |                                                |   |   | 2,596                                  |   |   | (2,596                           | )      |   |        |   |   |                                                                        |   |   |   |   |   | ― |   |
| Earned                compensation expense                            |   |   |                                   |   |   |                                                |   |   |                                   |   |   | 254                              |   |   |        |   |   |                                                                        |   |   |   |   |   | 254 |   |
| Share                options                exercised                 |   |   | 230                                    |   |   |                                                |   |   | 1,451                                  |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 1,451 |   |
| Tax                benefit                for share options exercised |   |   |                                   |   |   |                                                |   |   | 1,387                                  |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 1,387 |   |
| Shares                issued                from Employee Plan        |   |   | 9                                      |   |   |                                                |   |   | 182                                    |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 182 |   |
| Cash                dividends                on common shares         |   |   |                    |   |   |                       |   |   |                    |   |   |                   |   |   | (1,122      | )      |   |                                                              |   |   |                    |   |   | (1,122 | ) |
| **Balance                at March 31, 2005**                          |   |   | **28,058**                             |   | **$**  | **28**                                              |   | **$**  | **130,196**                            |   | **$**  | **(3,725**                       | **)**  | **$**  | **225,838** |   | **$**  | **110**                                                                     |   | **$** | **(149** | **)** | **$** | **352,298** |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   |   |   |
|                                                                       |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   |   |   |
| **Balance                at December 31, 2005**                       |   |   | **28,759**                             |   | **$**  | **29**                                              |   | **$**  | **143,780**                            |   | **$**  | **(2,698**                       | **)**  | **$**  | **328,463** |   | **$**  | **736**                                                                     |   | **$** | **(249** | **)** | **$** | **470,061** |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   |   |   |
| Net                income                                             |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   | 28,069      |   |   |                                                                        |   |   |   |   |   | 28,069 |   |
| Unrealized                gain                                        |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | 1,440                                                                       |   |   |   |   |   | 1,440 |   |
| Taxes                for                unrealized gain               |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   | (554                                                                        | )      |   |   |   |   | (554 | ) |
| Unrealized                loss                                        |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   | (103 | ) |   | (103 | ) |
| Tax                benefit                for unrealized loss         |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   | 92 |   |   | 92 |   |
| **Comprehensive                income**                               |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | **28,944** |   |
|                                                                  |   |   |                                   |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   |   |   |
| Reclassify                unearned compensation -restricted shares    |   |   |                                   |   |   |                                                |   |   | (2,698                                 | )      |   | 2,698                            |   |   |        |   |   |                                                                        |   |   |   |   |   | ― |   |
| Earned                compensation - options                          |   |   |                                   |   |   |                                                |   |   | 2,198                                  |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 2,198 |   |
| Earned                compensation - restricted shares                |   |   |                                   |   |   |                                                |   |   | 723                                    |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 723 |   |
| Issuance                of                restricted shares           |   |   | 138                                    |   |   |                                                |   |   |                                   |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   |   |   |
| Share                options                exercised                 |   |   | 32                                     |   |   |                                                |   |   | 291                                    |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 291 |   |
| Tax                benefit                for share options exercised |   |   |                                   |   |   |                                                |   |   | 328                                    |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 328 |   |
| Shares                issued                from Employee Plan        |   |   | 11                                     |   |   |                                                |   |   | 400                                    |   |   |                             |   |   |        |   |   |                                                                        |   |   |   |   |   | 400 |   |
| Cash                dividends                on common shares         |   |   |                    |   |   |                                 |   |   |                         |   |   |                   |   |   | (2,894      | )      |   |                                                              |   |   |                    |   |   | (2,894 | ) |
| **Balance                at March 31, 2006**                          |   |   | **28,940**                             |   | **$**  | **29**                                              |   | **$**  | **145,022**                            |   | **$**  | **―**                      |   | **$**  | **353,638** |   | **$**  | **1,622**                                                                   |   | **$** | **(260** | **)** | **$** | **500,051** |   |

----

**Back          to Table of Contents**

**Building      Materials Holding Corporation**

**Consolidated      Statements of Cash Flows**

**(thousands)**

**(unaudited)**

|                                    |   | **Three                Months Ended** |     |
|-----------------------------------------|--------|---------------------------------------|----------|
|                                    |   | **March                31**           |     |
| **Operating                Activities** |   |                                  | **2006** |    |   | **2005** |   |

| Net                income                                                                                                                                  |   | **$**  | **28,069**  |   | $      | 21,148  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|---------|--------|
| Items                in net                income not using (providing) cash:                                                                              |   |   |        |   |   |    |   |
| Minority                interests, net                                                                                                                     |   |   | **2,917**   |   |   | 3,001   |   |
| Share-based                compensation                                                                                                                    |   |   | **2,980**   |   |   | 281     |   |
| Depreciation                and amortization                                                                                                               |   |   | **10,390**  |   |   | 5,570   |   |
| Loss                on sale                of assets, net                                                                                                  |   |   | **27**      |   |   | 81      |   |
| Deferred                income taxes                                                                                                                       |   |   | **(208**    | **)**  |   | (1,174  | )      |
| Tax                benefit                for share options                                                                                                |   |   | **―** |   |   | 1,387   |   |
| Changes                in                assets and liabilities, net of effects of acquisitions and sales                of                business units: |   |   |        |   |   |    |   |
| Receivables,                net                                                                                                                            |   |   | **(19,399** | **)**  |   | (20,994 | )      |
| Inventory                                                                                                                                                  |   |   | **(15,096** | **)**  |   | (31,956 | )      |
| Unbilled                receivables                                                                                                                        |   |   | **(22,510** | **)**  |   | (6,251  | )      |
| Prepaid                expenses and other current assets                                                                                                   |   |   | **(2,257**  | **)**  |   | 3,981   |   |
| Accounts                payable                                                                                                                            |   |   | **35,094**  |   |   | 22,813  |   |
| Accrued                compensation                                                                                                                        |   |   | **(15,745** | **)**  |   | 285     |   |
| Insurance                deductible reserves                                                                                                               |   |   | **2,944**   |   |   | 5,419   |   |
| Other                accrued                liabilities                                                                                                    |   |   | **16,019**  |   |   | 6,800   |   |
| Billings                in                excess of costs and estimated earnings                                                                           |   |   | **(4,425**  | **)**  |   | 5,003   |   |
| Other                long-term assets and liabilities                                                                                                      |   |   | **(4,068**  | **)**  |   | (537    | )      |
| Other,                net                                                                                                                                  |   |   | **(370**    | **)**  |   | (732    | )      |
| Cash                flows                provided by operating activities                                                                                  |   |   | **14,362**  |   |   | 14,125  |   |
|                                                                                                                                                       |   |   |        |   |   |    |   |
| **Investing                Activities**                                                                                                                    |   |   |        |   |   |    |   |
| Purchases                of                property and equipment                                                                                          |   |   | **(10,409** | **)**  |   | (8,345  | )      |
| Acquisitions                and investments in businesses, net of cash acquired                                                                            |   |   | **(80,005** | **)**  |   | (4,713  | )      |
| Proceeds                from                dispositions of property and equipment                                                                         |   |   | **425**     |   |   | 68      |   |
| Purchase                of                marketable securities                                                                                            |   |   | **(253**    | **)**  |   | (169    | )      |
| Other,                net                                                                                                                                  |   |   | **(1,777**  | **)**  |   | (1,027  | )      |
| Cash                flows                used by investing activities                                                                                      |   |   | **(92,019** | **)**  |   | (14,186 | )      |
|                                                                                                                                                       |   |   |        |   |   |    |   |
| **Financing                Activities**                                                                                                                    |   |   |        |   |   |    |   |
| Net                borrowings under revolver                                                                                                               |   |   | **80,700**  |   |   | 13,100  |   |
| Principal                payments on term note                                                                                                             |   |   | **(313**    | **)**  |   | (313    | )      |
| Net                (payments) borrowings on other notes payable                                                                                            |   |   | **(688**    | **)**  |   | 458     |   |
| Increase                in                book overdrafts                                                                                                  |   |   | **329**     |   |   | 718     |   |
| Proceeds                from                share options exercised                                                                                        |   |   | **291**     |   |   | 1,451   |   |
| Tax                benefit                for share options                                                                                                |   |   | **328**     |   |   | ― |   |
| Dividends                paid                                                                                                                              |   |   | **(2,158**  | **)**  |   | (1,108  | )      |
| Deferred                financing costs                                                                                                                    |   |   | **―** |   |   | (348    | )      |
| Distributions                to minority interests                                                                                                         |   |   | **(245**    | **)**  |   | ― |   |
| Other,                net                                                                                                                                  |   |   | **(395**    | **)**  |   | 73      |   |
| Cash                flows                provided by financing activities                                                                                  |   |   | **77,849**  |   |   | 14,031  |   |
|                                                                                                                                                       |   |   |        |   |   |    |   |
| **Increase                in Cash and Cash Equivalents**                                                                                                   |   |   | **192**     |   |   | 13,970  |   |
|                                                                                                                                                       |   |   |        |   |   |    |   |
| Cash                and cash                equivalents, beginning of year                                                                                 |   |   | **30,078**  |   |   | 19,496  |   |
| Cash                and cash                equivalents, end of year                                                                                       |   | **$**  | **30,270**  |   | $      | 33,466  |   |
|                                                                                                                                                       |   |   |        |   |   |    |   |
| **Supplemental                Disclosure of Cash Flow Information**                                                                                        |   |   |        |   |   |    |   |
| Accrued                but                unpaid dividends                                                                                                 |   | **$**  | **2,893**   |   | $      | 1,122   |   |
| Cash                paid for                interest                                                                                                       |   | **$**  | **4,923**   |   | $      | 2,996   |   |
| Cash                paid for                income taxes                                                                                                   |   | **$**  | **13,146**  |   | $      | 8,125   |   |
|                                                                                                                                                       |   |   |        |   |   |    |   |
| **Supplemental                Disclosure of Non-cash Investing Activities**                                                                                |   |   |        |   |   |    |   |
| Fair                value of                assets acquired                                                                                                |   | **$**  | **133,143** |   | $      | 17,910  |   |
| Liabilities                assumed                                                                                                                         |   | **$**  | **53,138**  |   | $      | 13,197  |   |
| Cash                paid for                acquisitions and investments in businesses, net of cash                acquired                                |   | **$**  | **80,005**  |   | $      | 4,713   |   |

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**Notes      to Consolidated Financial Statements**

**1.**
**Basis      of      Presentation**

*Common      Share      Split*

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

|                                                                                                                                      |   |   | **Three                Months Ended** |         |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------------|
|                                                                                                                                           |   |   | **March                31**           |         |
|                                                                                                                                           |   |   | **2006**                              |    |   | 2005 |   |
| Net                income                                                                                                                 |   | **$**  | **28,069**                            |         | $ | 21,148 |   |
|                                                                                                                                      |   |   |                                  |         |   |   |   |
| Weighted                average shares used to determine basic net income per                share                                        |   |   | **28,524**                            |         |   | 27,670 |   |
| Net                effect of                dilutive stock options                and                restricted stock (1) ** ** |   |   | **1,049**                             |         |   | 1,195 |   |
| Weighted                average shares used to determine diluted net income per                share                                      |   |   | **29,573**                            |         |   | 28,865 |   |
|                                                                                                                                      |   |   |                                  |         |   |   |   |
| Net                income                per share:                                                                                       |   |   |                                  |         |   |   |   |
| Basic                                                                                                                                     |   |   | **$0.98**                             |         |   | $0.76 |   |
| Diluted                                                                                                                                   |   |   | **$0.95**                             |         |   | $0.73 |   |
|                                                                                                                                      |   |   |                                  |         |   |   |   |
| Cash                dividends declared per share                                                                                          |   |   | **$0.10**                             |         |   | $0.04 |   |
|                                                                                                                                      |   |   |                                  |         |   |   |   |

| (1) | Options                to                purchase common shares of 407,100 and 416,000 for the first quarter                of                2006 and 2005 were not dilutive and therefore excluded from the                computation of net income per diluted share. Options were categorized                as                not dilutive on the basis that the exercise price was greater than                the                average market value of the common shares in the periods                presented. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**3.**
**Accounting      for Share-Based Compensation**

*Share-Based      Payment*

*Pro      Forma      Information for the Period Prior to January 1, 2006*

*Accounting      for      Stock-Based Compensation*

|                                                                                                                                                                         |   |   | **Three                Months Ended** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                                                                                                                         |   |   | **March                31**           |   |
|                                                                                                                                                                              |   |   | **2005**                              |   |
| Net                income, as reported                                                                                                                                       |   | **$**  | **21,148**                            |   |
| Add:                Share-based employee compensation expense determined under APB 25, net                of related tax effects                                             |   |   | **138**                               |   |
| Deduct:                Share-based employee compensation expense determined under                fair value method for all awards, net of related tax                effects |   |   | **(557**                              | **)**  |
| Pro                forma net income                                                                                                                                          |   | **$**  | **20,729**                            |   |
|                                                                                                                                                                         |   |   |                                  |   |
|                                                                                                                                                                         |   |   |                                  |   |
| Diluted                net income per share:                                                                                                                                 |   |   |                                  |   |
| As                reported                                                                                                                                                   |   |   | **$0.73**                             |   |
| Pro                forma                                                                                                                                                     |   |   | **$0.72**                             |   |

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**4.**
**Impairment      of Assets**

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**5.**
**Acquisitions      and Minority Interests **

|   | · | In                February                2006, BMC West acquired three facilities providing building materials                distribution and millwork services in Houston, Texas for approximately                $20.8 million in cash of which $0.4 million has been retained for                the                settlement period. This purchase price is subject to working capital                adjustment. 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                January                2006, BMC Construction acquired framing businesses in Palm Springs,                California and Reno, Nevada for approximately $57.7 million in cash                of                which $12.1 million has been retained for the settlement period.                This                purchase price is subject to working capital adjustment. An additional                cash payment may be required based on operating performance through                December 2009. 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                October                2005, BMC Construction acquired a framing services business in San                Diego,                California for approximately $72.6 million in cash of which $7.7                million                has been retained for the settlement period and operating performance.                This purchase price is subject to working capital adjustment. An                additional cash payment may be required based on operating performance                through September 2009. 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 $85.6 million in                cash. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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                January                2006, BMC Construction acquired the remaining 20% interest in WBC                Construction, LLC for $27.0 million in cash of which $24.4 million                is                payable in December 2006. An additional cash payment may be required                based                on operating performance through December 2006. 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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | In                July 2005,                BMC Construction acquired a 51% interest in BBP Companies for $9.4                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. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                July 2005,                BMC Construction acquired an additional 13% interest in Riggs Plumbing,                LLC (Riggs Plumbing) for $1.4 million in cash. In April 2005, we                acquired                an initial 60% interest for $17.8 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. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | **March                31** |                                   | December                31 |   |                           |   |   | **March                31**                            |         | December                31 |        |
|-------------------------------------------|--------|-----------------------------|----------------------------------------|----------------------------|--------|--------------------------------|--------|--------|--------------------------------------------------------|--------------|----------------------------|-------------|
|                                           |   | **2006**                    |                              | 2005                       |   |                           |   |   | **2006**                                               |    | 2005                       |        |
| Cash                and cash equivalents  |   | $                           | ―                                |                       | $      | 1,644                          |   |   | Accounts                payable                        |         | $                          | 9,918       |   | $ | 46,078 |   |
| Receivables                               |   |                        | **29,655**                             |                       |   | 106,407                        |   |   | Accrued                compensation                    |         |                       | **1,187**   |   |   | 7,385 |   |
| Inventory                                 |   |                        | **10,286**                             |                       |   | 11,559                         |   |   | Insurance                deductible reserves           |         |                       | **―** |   |   | 3,192 |   |
| Unbilled                receivables       |   |                        | **7,740**                              |                       |   | 30,554                         |   |   | Other                accrued liabilities               |         |                       | **27,860**  |   |   | 30,014 |   |
| Deferred                income taxes      |   |                        | **―**                            |                       |   | (6,527                         | )      |   | Billings                in excess of costs             |         |                       |        |   |   |   |   |
| Prepaid                expenses and other |   |                        | **36**                                 |                       |   | 4,057                          |   |   | and                estimated earnings                  |         |                       | **11,080**  |   |   | 24,436 |   |
|                                           |   |                        |               |                       |   |       |   |   | Current                portion of long-term debt  |         |                       | **―** |   |   | 5,605 |   |
| Total                current assets  |   |                        | **47,717**                             |                       |   | 147,694                        |   |   | Total                current liabilities               |         |                       | **50,045**  |   |   | 116,710 |   |
|                                      |   |                        |                                   |                       |   |                           |   |   |                                                   |         |                       |        |   |   |   |   |
| Property                and equipment     |   |                        | **8,606**                              |                       |   | 33,406                         |   |   | Deferred                income taxes                   |         |                       | **―** |   |   | 8,528 |   |
| Other                long-term assets     |   |                        | **13**                                 |                       |   | 18                             |   |   | Long-term                debt                          |         |                       | **―** |   |   | 10,048 |   |
| Other                intangibles, net     |   |                        | **26,111**                             |                       |   | 46,824                         |   |   | Other                long-term liabilities             |         |                       | **9,000**   |   |   | ― |   |
| Goodwill                                  |   |                        | **50,696**                             |                       |   | 109,982                        |   |   | Total                  liabilities                     |         |                       | **59,045**  |   |   | 135,286 |   |
|                                      |   |                        |                                   |                       |   |                           |   |   |                                                   |         |                       |        |   |   |   |   |
|                                           |   |                        |                    |                       |   |       |   |   | Minority                interests                      |         |                       | **(5,907**  | **)** |   | (3,172 | ) |
| Total                assets               |   | **$**                       | **133,143**                            |                       | $      | 337,924                        |   |   | Total                liabilities and minorityinterests |         | **$**                      | **53,138**  |   | $ | 132,114 |   |

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|                                                        |   |                                  |               |         |   |
|-------------------------------------------------------------|--------|---------------------------------------|--------------------|--------------|--------|
|                                                        |   | **Three                Months Ended** |               |
|                                                        |   | **March                31**           |               |
|                                                             |   | **2006**                              |     | 2005         |   |
| Sales                                                       |   |                                  |               |    |   |
| As                reported                                  |   | **$**                                 | **884,557**        |         | $      | 572,928 |   |
| Pro                forma                                    |   | **$**                                 | **899,251**        |         | $      | 788,019 |   |
|                                                        |   |                                  |               |         |   |   |   |
| Net                income                                   |   |                                  |               |         |   |   |   |
| As                reported                                  |   | **$**                                 | **28,069**         |         | $      | 21,148 |   |
| Pro                forma                                    |   | **$**                                 | **28,979**         |         | $      | 28,133 |   |
|                                                        |   |                                  |               |         |   |   |   |
| Diluted                net                income per share: |   |                                  |               |         |   |   |   |
| As                reported                                  |   |                                  | **$0.95**          |         |   | $0.73 |   |
| Pro                forma                                    |   |                                  | **$0.98**          |         |   | $0.97 |   |

*Subsequent      to      March 31, 2006*

|   | · | In                April                2006, BMC Construction acquired a concrete services business in Northern                Arizona for approximately $1.5 million in                cash. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                April                2006, BMC Construction acquired a wall panel and truss manufacturing                business in Palm Springs, California for approximately $6.7 million                in                cash. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 | **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 |

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**6.**
**Marketable      Securities**

|                                                  |   | **March                31,** |               | December                31, |   |
|-------------------------------------------------------|--------|------------------------------|--------------------|-----------------------------|--------|
|                                                       |   | **2006**                     |     | 2005                        |   |
| Money                market                funds      |   | **$**                        | **782**            |                        | $      | 415 |   |
| U.S.                government and agencies           |   |                         | **7,794**          |                        |   | 7,838 |   |
| Asset                backed                securities |   |                         | **13,313**         |                        |   | 13,391 |   |
| Corporate                securities                   |   |                         | **10,749**         |                        |   | 10,876 |   |
|                                                  |   | **$**                        | **32,638**         |                        | $      | 32,520 |   |

|                                               |   | **March                31,** |               | December                31, |   |
|----------------------------------------------------|--------|------------------------------|--------------------|-----------------------------|--------|
|                                                    |   | **2006**                     |     | 2005                        |   |
| Less                than one                year   |   | **$**                        | **8,025**          |                        | $      | 3,645 |   |
| One                to two                years     |   |                         | **6,516**          |                        |   | 9,893 |   |
| Two                to five                years    |   |                         | **17,496**         |                        |   | 18,982 |   |
| More                than                five years |   |                         | **601**            |                        |   | ― |   |
|                                               |   | **$**                        | **32,638**         |                        | $      | 32,520 |   |

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**7.**
**Intangible      Assets and Goodwill**

|                                                   |   | **March                31, 2006** |               |
|--------------------------------------------------------|--------|-----------------------------------|--------------------|
|                                                   |   | **Gross**                         |               |   |   |   |   |   |   |
|                                                   |   | **Carrying**                      |               | **Accumulated** |   | **Net                Carrying** |   |
|                                                        |   | **Amount**                        |     | **Amortization** |     | **Amount** |   |
| Customer                relationships                  |   | $                                 | 84,035             |   | $ | (12,285 | ) | **$** | **71,750** |   |
| Covenants                not                to compete |   |                              | 9,183              |   |   | (2,870 | ) |   | **6,313** |   |
| Trade                names                             |   |                              | 204                |   |   | (108 | ) |   | **96** |   |
| Other                                                  |   |                              | 146                |   |   | (36 | ) |   | **110** |   |
|                                                   |   | $                                 | 93,568             |   | $ | (15,299 | ) | **$** | **78,269** |   |

|                                                   |   | **December                31, 2005** |               |
|--------------------------------------------------------|--------|--------------------------------------|--------------------|
|                                                   |   | **Gross**                            |               |   |   |   |   |   |   |
|                                                   |   | **Carrying**                         |               | **Accumulated** |   | **Net                Carrying** |   |
|                                                   |   | **Amount**                           |     | **Amortization** |     | **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 |   |

|                                                            |   | **BMC                West** |     |  **BMC****Construction** |     |  **Total** |   |
|------------------------------------------------------------|--------|-----------------------------|--------------------|-------------------------------|--------------------|-----------------|--------|
| Balance                at                December 31, 2005 |   | $                           | 20,202             |                          | $                  | 167,268         |   | $ | 187,470 |   |
| Purchase                price adjustment                   |   |                        | ―            |                          |               | 1,903           |   |   | 1,903 |   |
| Goodwill                acquired                           |   |                        | 116                |                          |               | 48,673          |   |   | 48,789 |   |
| Balance                at                March 31, 2006    |   | **$**                       | **20,318**         |                          | **$**              | **217,844**     |   | **$** | **238,162** |   |

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**8.**
**Debt**

| **As                of                March 31, 2006** |   | **Stated                Interest Rate** |              | **Notional                Amount of Interest Rate Swaps**          |   | **Effective                Interest Rate** |
|--------------------------------------------------------|--------|-----------------------------------------|-------------------|--------------------------------------------------------------------|--------|--------------------------------------------|
|                                                   |   | **Balance**                             |              |                                                               |   | **Average****for                Quarter**  | **As                of****March                31** |
| Revolving                credit facility               | **$**  | **158,200 **                       |              | LIBOR                plus                0.75% or Prime plus 0.00% |   | **$**                                      | **― ** |   | **6.13%** |   | **5.94%** |
| Term                note                               |   | **75,000 **                        |              | LIBOR                plus                0.75% or Prime plus 0.00% |   |                                       | **― ** |   | **5.29%** |   | **5.73%** |
| Term                note                               |   | **121,563 **                       |              | LIBOR                plus                1.75%                     |   |                                       | **100,000 ** |   | **6.17%** |   | **6.25%** |
| Other                                                  |   | **13,327 **                        |              | Various                                                            |   |                                       | **― ** |   | ―    |   | ―    |
|                                                   |   |                                    | **368,090 ** |                                                               |   |                                       | **$** | **100,000 ** |   |   |   |   |
|                                                   |   |                                    |              |                                                               |   |                                       |   |   |   |   |   |   |
| Less:  Current                portion        |   | **11,939 **                        |              |                                                               |   |                                       |   |   |   |   |   |
|                                                   |   | **$**                                   | **356,151 ** |                                                               |   |                                       |   |   |   |   |   |   |

| **As                of                December 31, 2005** |   | **Stated                Interest Rate** |          | **Notional                Amount of Interest Rate Swaps**          |   | **Effective                Interest Rate** |
|-----------------------------------------------------------|--------|-----------------------------------------|---------------|--------------------------------------------------------------------|--------|--------------------------------------------|
|                                                      |   | **Balance**                             |          |                                                               |   | **Average                for Year**        |   | **As                of****December                31** |
| Revolving                credit facility                  | $      | 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  |                                                               |   |                                       |   |   |   |   |   |   |

*Revolver*

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*Term      Notes*

*Other*

*Covenants      and      Maturities*

|            |   |   |    |   |
|------------|--------|--------|---------|--------|
| 2006       |   | $      | 9,180   |   |
| 2007       |   |   | 13,946  |   |
| 2008       |   |   | 14,081  |   |
| 2009       |   |   | 77,777  |   |
| 2010       |   |   | 252,550 |   |
| Thereafter |   |   | 556     |   |
|       |   | $      | 368,090 |   |

*Hedging      Activities*

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**9.**
**Shareholders’      Equity**

*Preferred      Shares*

*Common      Shares*

|                                                    |   | **Unissued                Shares** |    |
|----------------------------------------------------|--------|------------------------------------|---------|
| Employee                Stock Purchase Plan        |   |                               | 128,431 |   |
| 2004                Incentive and Performance Plan |   |                               | 746,066 |   |

*Shareholders’      Rights Plan*

*Dividends*

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**10.**
**Employee      Benefit Plans**

*Retirement      Plans*

*Cash      Equity      Plan*

*Employee      Stock      Purchase Plan*

*2004      Incentive      and Performance Plan*

*Options*

|   | · | In                  the period                  ended March 31, 2006, we granted 407,100 options to employees.                  These                  options vest ratably over three years from the date of grant and                  expire                  after seven years if unexercised. These options were awarded with                  exercise                  prices equal to the fair value of the shares on the date of                  grant. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                  2005, we                  granted 424,000 options to employees. These options vest ratably                  over                  three years from the date of grant and expire after seven years                  if                  unexercised. These options were awarded with exercise prices equal                  to the                  fair value of the shares on the date of                  grant. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                  2004, we                  granted 402,000 options to employees. These options vest ratably                  over                  three years from the date of grant and expire after seven years                  if                  unexercised. These options were awarded with exercise prices equal                  to the fair value of the shares on the date of                  grant. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                 |   | **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** |   |
|    $4.84                    to $5.97  |   |                                       | 555,000   |                                                                      |   | 4.21 |   |   | $4.94 |   |   | 555,000 |   |   | $4.94 |   |
|    $6.00                    to $6.97  |   |                                       | 459,154   |                                                                      |   | 5.43 |   |   | $6.77 |   |   | 371,030 |   |   | $6.72 |   |
|    $7.00                    to $7.88  |   |                                       | 479,312   |                                                                      |   | 6.63 |   |   | $7.37 |   |   | 375,816 |   |   | $7.23 |   |
|    $8.70                    to $9.75  |   |                                       | 350,876   |                                                                      |   | 5.01 |   |   | $8.72 |   |   | 98,884 |   |   | $8.76 |   |
|  $22.77                    to $28.36            |   |                                       | 417,332   |                                                                      |   | 5.88 |   |   | $22.88 |   |   | 134,678 |   |   | $22.77 |   |
|  $37.93                    to $38.16            |   |                                       | 407,100   |                                                                      |   | 6.80 |   |   | $37.93 |   |   | ― |   |   | ― |   |
|    $4.84                    to $38.16 |   |                                       | 2,668,774 |                                                                      |   | 5.62 |   |   | $14.03 |   |   | 1,535,408 |   |   | $7.74 |   |

*Share-Based      Payment,*

| **Grant                  Year** |    | **Grant                  Date** |                      | **Expected                  Term****(Years)** |    | **Expected                  Volatility**                         |    | **Expected                  Dividend Yield** |    | **Risk                  Free Interest Rate** |     | **Grant                  Date Fair Value** |   |
|---------------------------------|--------------|---------------------------------|--------------------------------|-----------------------------------------------|--------------|------------------------------------------------------------------|--------------|----------------------------------------------|--------------|----------------------------------------------|--------------------|--------------------------------------------|--------|
| 2006                            |         |                            | January                  2006  |                                          |         | 5.94                          |         |                                         | 48.58        | %                                            |               | 0.70                                       | %      |   | 3.77 | % |   | $37.93 |   |
| 2005                            |         |                            | May                  2005      |                                          |         | 7.0                      |         |                                         | 54.16        | %                                            |               | 0.10                                       | %      |   | 4.29 | % |   | $28.36 |   |
| 2005                            |         |                            | February                  2005 |                                          |         | 7.33                     |         |                                         | 54.16        | %                                            |               | 0.08                                       | %      |   | 4.10 | % |   | $22.77 |   |
| 2004                            |         |                            | May                  2004      |                                          |         | 7.0                      |         |                                         | 54.25        | %                                            |               | 1.45                                       | %      |   | 4.56 | % |   | $8.50 |   |
| 2004                            |         |                            | February                  2004 |                                          |         | 7.88                     |         |                                         | 54.68        | %                                            |               | 0.06                                       | %      |   | 4.09 | % |   | $7.88 |   |
| 2003                            |         |                            | April                  2003    |                                          |         | 8.53                     |         |                                         | 55.42        | %                                            |               | 1.33                                       | %      |   | 3.94 | % |   | $6.97 |   |

*Restricted        Shares*

|   | · | In                  the period                  ended March 31, 2006, we issued 138,400 restricted shares to employees.                  The weighted-average fair value of the restricted shares granted                  was                  $37.88 per share. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                  2005, we                  issued 118,000 restricted shares to employees. The weighted-average                  fair                  value of the restricted shares granted was $23.19 per                  share. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                  2004, we                  issued 149,000 restricted shares to employees. The weighted-average                  fair                  value of the restricted shares granted was $10.89 per share. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Shares*

|   | · | In                      2005, we                      issued 14,000 shares to non-employee directors and recognized                      compensation                      expense of $0.4 million. These shares vest immediately, however                      trading is                      restricted for one year from the date of grant. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                          |   | **March                  31** |               | **December                  31**             |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------------------|----------------------------------------------|--------|
|                                                                                                          |   | **2006**                      |               | **2005**                                     |   |
|                                                                                                               |   | **Shares**                    |     | **Weighted****Average****Exercise****Price** |   | **Shares** |     | **Weighted****Average****Exercise****Price** |   |
| Outstanding                  at beginning of the period                                                       |   |                          | 2,557,412          |                                         |   | $8.75 |   |   | 2,904,796 |   |   | $6.11 |   |
| Granted                                                                                                       |   |                          | 545,500            |                                         |   | $28.31 |   |   | 542,000 |   |   | $17.90 |   |
| Exercised                                                                                                     |   |                          | (31,572            | )                                            |   | $9.22 |   |   | (861,384 | ) |   | $5.70 |   |
| Forfeited                                                                                                     |   |                          | (6,666             | )                                            |   | $14.33 |   |   | (28,000 | ) |   | $5.56 |   |
| Outstanding                  at end of the period                                                             |   |                          | 3,064,674          |                                         |   | $12.21 |   |   | 2,557,412 |   |   | $8.75 |   |
|                                                                                                          |   |                          |               |                                         |   |   |   |   |   |   |   |   |   |
| Options                  exercisable at end of the period                                                     |   |                          | **1,535,408**      |                                         |   | **$7.74** |   |   | 1,425,300 |   |   | $6.32 |   |
| Weighted                  average fair value of options granted at fair value for the                  period |   |                          | **$37.93**         |                                         |   |   |   |   | $22.88 |   |   |   |   |

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|                                                                           |   | **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     |   |                                                                                                                          | 2,964,674          |                                                                                                          |                             | $12.42                                                                                                                         |   |   | 746,066 |   |
| Equity                compensation plans not approved by security holders |   |                                                                                                                          | 100,000            |                                                                                                          |                             | $6.25                                                                                                                          |   |   | ― |   |
| Total                                                                     |   |                                                                                                                          | 3,064,674          |                                                                                                          |                             | $12.21                                                                                                                         |   |   | 746,066 |   |
|                                                                      |   |                                                                                                                          |               |                                                                                                          |                             |                                                                                                                           |   |   |   |   |

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**11.**
**Legal      Proceedings**

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**12.**
**Segment      Information**

|                                                 |   |      |    |              |   |      |   | **Income                (Loss)** |        |             |   |             |   |       |   |
|------------------------------------------------------|--------|-----------|---------|-------------------|--------|-----------|--------|----------------------------------|-------------|------------------|--------|------------------|--------|------------|--------|
|                                                 |   |      |    |              |   |      |   | **Before**                       |        |             |   |             |   |       |   |
|                                                 |   |      |    |              |   |      |   | **Taxes                and**     |        | **Depreciation** |   |             |   |       |   |
|                                                 |   | **Sales** |    | **Minority**      |   | **and**   |   | **Capital                (1)**   |        |             |   |
|                                                 |   | **Total** |    | **Inter-Segment** |   | **Trade** |   | **Interests**                    |        | **Amortization** |   | **Expenditures** |   | **Assets** |   |
| **Three              Months Ended March 31, 2006**   |   |      |    |              |   |      |   |                             |        |             |   |             |   |
| BMC                Construction                      |   | $         | 498,330 |              | $      | (32       | )      | $                                | **498,298** |             | $      | **46,075**       |   | $     | 5,901  |   | $ | 14,232 |   | $ | 757,769 |   |
| BMC                West                              |   |      | 386,876 |              |   | (617      | )      |                             | **386,259** |             |   | **30,546**       |   |       | 4,281  |   |   | 4,123 |   |   | 493,011 |   |
| Corporate                                            |   |      | ― |              |   | ―   |   |                             | **―** |             |   | (22,235          | )      |       | 208    |   |   | 660 |   |   | 99,519 |   |
|                                                 |   | $         | 885,206 |              | $      | (649      | )      | $                                | **884,557** |             |   | **54,386**       |   | $          | 10,390 |   | $ | 19,015 |   | $ | 1,350,299 |   |
| Interest                expense                      |   |      |    |              |   |      |   |                             |        |             |   | **5,590**        |   |       |   |   |   |   |   |   |   |   |
|                                                 |   |      |    |              |   |      |   |                             |        |             | $      | **48,796**       |   |       |   |   |   |   |   |   |   |   |
|                                                 |   |      |    |              |   |      |   |                             |        |             |   |             |   |       |   |   |   |   |   |   |   |   |
| **Three                Months Ended March 31, 2005** |   |      |    |              |   |      |   |                             |        |             |   |             |   |
| BMC                Construction                      |   | $         | 242,501 |              | $      | (259      | )      | $                                | 242,242     |             | $      | 28,532           |   | $          | 2,041  |   | $ | 1,847 |   | $ | 307,655 |   |
| BMC                West                              |   |      | 330,819 |              |   | (133      | )      |                             | 330,686     |             |   | 28,875           |   |       | 3,392  |   |   | 6,985 |   |   | 462,099 |   |
| Corporate                                            |   |      | ― |              |   | ―   |   |                             | ―     |             |   | (17,099          | )      |       | 137    |   |   |                  |   |   | 69,377 |   |
|                                                 |   | $         | 573,320 |              | $      | (392      | )      | $                                | 572,928     |             |   | 40,308           |   | $          | 5,570  |   | $ | 8,832 |   | $ | 839,131 |   |
| Interest                expense                      |   |      |    |              |   |      |   |                             |        |             |   | 3,198            |   |       |   |   |   |   |   |   |   |   |
|                                                 |   |      |    |              |   |      |   |                             |        |             | $      | 37,110           |   |       |   |   |   |   |   |   |   |   |

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| **Item              2** | **-                MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION****AND RESULTS                OF OPERATIONS** |
|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

**Business      Environment and Executive Overview**

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

|   | · | framing                services in Palm Springs, California and Reno, Nevada (January                2006) |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | remaining                20%                interest in our existing business providing concrete block masonry                and                concrete services in Florida (effective January                2006) |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | building                material distribution and millwork services in Houston, Texas (February                2006) |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | concrete                services business in Northern Arizona (April                2006) |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | wall                panel                and truss manufacturing business in Palm Springs, California (April                2006) |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

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**RESULTS      OF      OPERATIONS**

|                                                             |   | **Three                Months Ended** |                     |
|------------------------------------------------------------------|--------|---------------------------------------|--------------------------|
|                                                             |   | **March                31**           |                     |
|                                                                  |   | **2006**                              |      | **2005** |   |
| **Sales**                                                        |   |                                  |                     |   |   |   |   |   |   |
| Construction                services                             |   | **$**                                 | **548.9**                |   |   | **62.1** | **%** | $ | 280.0 |   |   | 48.9 | % |
| Building                products                                 |   |                                  | **335.7**                |   |   | **37.9** |   |   | 292.9 |   |   | 51.1 |   |
| **Total                sales**                                   |   |                                  | **884.6**                |   |   | **100.0** |   |   | 572.9 |   |   | 100.0 |   |
|                                                             |   |                                  |                     |   |   |   |   |   |   |   |   |   |   |
| **Costs                and operating expenses**                  |   |                                  |                     |   |   |   |   |   |   |   |   |   |   |
| Cost                of goods                sold                 |   |                                  |                     |   |   |   |   |   |   |   |   |   |   |
| Construction                services                             |   |                                  | **448.3**                |   |   | **81.7** |   |   | 227.5 |   |   | 81.3 |   |
| Building                products                                 |   |                                  | **246.8**                |   |   | **73.5** |   |   | 215.6 |   |   | 73.6 |   |
| Total                cost of                goods sold           |   |                                  | **695.1**                |   |   | **78.6** |   |   | 443.1 |   |   | 77.3 |   |
| Selling,                general and administrative expenses      |   |                                  | **136.9**                |   |   | **15.5** |   |   | 90.0 |   |   | 15.7 |   |
| Other                income,                net                  |   |                                  | **(1.8**                 | **)** |   | **(0.2** | **)** |   | (0.5 | ) |   | ― |   |
| Total                costs                and operating expenses |   |                                  | **830.2**                |   |   | **93.9** |   |   | 532.6 |   |   | 93.0 |   |
|                                                             |   |                                  |      |   |   |     |   |   |     |   |   |      |   |
| **Income                from operations**                        |   |                                  | **54.4**                 |   |   | **6.1** |   |   | 40.3 |   |   | 7.0 |   |
|                                                             |   |                                  |                     |   |   |   |   |   |   |   |   |   |   |
| **Net                income**                                    |   | **$**                                 | **28.1**                 |   |   | **3.2** | **%** | $ | 21.1 |   |   | 3.7 | % |
|                                                             |   |                                  |                     |   |   |   |   |   |   |   |   |   |   |
| **Income per                diluted share**                 |   |                                  | **$0.95**                |   |   |   |   |   | $0.73 |   |   |   |   |

**First      Quarter of 2006 Compared to 2005**

*Consolidated      Financial Results*

|                                           |   | **2006** |     | **2005** |      | **$                Δ** |     | **%                Δ** |   |
|-------------------------------------------|--------|----------|--------------------|----------|--------------------------|-----------------------------|--------------------|-----------------------------|--------|
| **Sales**                                 |   |     |               |     |                     |                        |               |                        |   |
| Construction                services      |   | **$**    | **549**            |     | $                        | 280                         |               | $                           | 269    |   |   | 96 | % |
| Building                products          |   |     | **336**            |     |                     | 293                         |               |                        | 43     |   |   | 15 | % |
|                                      |   | **$**    | **885**            |     | $                        | 573                         |               | $                           | 312    |   |   | 54 | % |
|                                      |   |     |               |     |                     |                        |               |                        |   |   |   |   |   |
| **Income                from operations** |   | **$**    | **54**             |     | $                        | 40                          |               | $                           | 14     |   |   | 35 | % |

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*Business      Segments*

|                            |   | **2006**  |               | **2005**                                     |   |
|---------------------------------|--------|-----------|--------------------|----------------------------------------------|--------|
|                                 |   | **Sales** |     | **Income                from****Operations** |   |  **Sales** |      | **Income                from****Operations** |   |
| BMC                Construction |   | **$**     | **499**            |                                         | **$**  | **46** |   | $ | 242 |   | $ | 28 |   |
| BMC                West         |   |      | **386**            |                                         |   | **30** |   |   | 331 |   |   | 29 |   |
| Corporate                       |   |      | **―**        |                                         |   | **(22** | **)** |   | ― |   |   | (17 | ) |
|                            |   | **$**     | **885**            |                                         | **$**  | **54** |   | $ | 573 |   | $ | 40 |   |

*BMC      Construction*

|                                           |   | **2006** |     | **2005** |     | **$                Δ** |     | **%                Δ** |    |
|-------------------------------------------|--------|----------|--------------------|----------|--------------------|-----------------------------|--------------------|-----------------------------|---------|
| **Sales**                                 |   | **$**    | **499**            |     | $                  | 242                         |               | $                           | 257     |   |   | 106 | % |
| Less:                Acquisitions         |   |     | **(224**           | **)**    |               | ―                     |               |                        | (224    | ) |   | ― |   |
|                                      |   | **$**    | **275**            |     | $                  | 242                         |               | $                           | 33      |   |   | 14 | % |
|                                      |   |     |               |     |               |                        |               |                        |    |   |   |   |   |
| **Income                from operations** |   | **$**    | **46**             |     | $                  | 28                          |               | $                           | 18      |   |   | 64 | % |
| Less:                Acquisitions         |   |     | **(18**            | **)**    |               | ―                     |               |                        | (18     | ) |   | ― |   |
|                                      |   | **$**    | **28**             |     | $                  | 28                          |               | $                           | ― |   |   | ― |   |

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*BMC      West*

|                                           |   | **2006** |     | **2005** |     | **$                Δ** |     | **%                Δ** |    |
|-------------------------------------------|--------|----------|--------------------|----------|--------------------|-----------------------------|--------------------|-----------------------------|---------|
| **Sales**                                 |   | **$**    | **386**            |     | $                  | 331                         |               | $                           | 55      |   |   | 17 | % |
| Less:                Acquisitions         |   |     | **(8**             | **)**    |               | ―                     |               |                        | (8      | ) |   | ― |   |
|                                      |   | **$**    | **378**            |     | $                  | 331                         |               | $                           | 47      |   |   | 14 | % |
|                                      |   |     |               |     |               |                        |               |                        |    |   |   |   |   |
| **Income                from operations** |   | **$**    | **30**             |     | $                  | 29                          |               | $                           | 1       |   |   | 3 | % |
| Less:                Acquisitions         |   |     | **―**        |     |               | ―                     |               |                        | ― |   |   | ― |   |
|                                      |   | **$**    | **30**             |     | $                  | 29                          |               | $                           | 1       |   |   | 3 | % |

*Corporate*

|                                                                  |   | **2006** |     | **2005** |     | **$                Δ** |     | **%                Δ** |   |
|------------------------------------------------------------------|--------|----------|--------------------|----------|--------------------|-----------------------------|--------------------|-----------------------------|--------|
| **Corporate                general and administrative expenses** |   | **$**    | **22**             |     | $                  | 17                          |               | $                           | 5      |   |   | 29 | % |

**LIQUIDITY      AND CAPITAL RESOURCES**

**Cash      Flows**

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*Operations*

*Capital      Investments and Acquisitions*

*Financing*

**Credit      Facility**

*Revolver*

*Term      Notes*

----

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*Other*

*Covenants      and      Maturities*

|       |   |   |    |   |
|------------|--------|--------|---------|--------|
| 2006       |   | $      | 9,180   |   |
| 2007       |   |   | 13,946  |   |
| 2008       |   |   | 14,081  |   |
| 2009       |   |   | 77,777  |   |
| 2010       |   |   | 252,550 |   |
| Thereafter |   |   | 556     |   |
|       |   | $      | 368,090 |   |

*Hedging      Activities*

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**Equity**

*Preferred      Shares *

*Common      Shares*

*Shelf      Registration*

**OFF-BALANCE      SHEET ARRANGEMENTS**

**CRITICAL      ACCOUNTING ESTIMATES**

|   | · | revenue                recognition for construction                services |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | estimated                losses on uncompleted contracts and changes in contract                estimates |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | goodwill |
|--------|--------|----------|

|   | · | insurance                deductible reserves |
|--------|--------|----------------------------------------------|

|   | · | share-based                compensation |
|--------|--------|-----------------------------------------|

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**BUSINESS      RISKS AND FORWARD-LOOKING STATEMENTS**

|   | · | demand                for                homebuilding 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                in                our business model; |
|--------|--------|--------------------------------------------------------------|

|   | · | 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; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | implementation                of cost structures that align with revenue                growth; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | changes                in                the business models of 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; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | 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. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | share                price                fluctuations and |
|--------|--------|------------------------------------------------------------|

|   | · | potential                share price limitations due to anti-takeover defenses in our governing                documents and certain provisions under Delaware                law. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Item      3**-*** *****Quantitative      and Qualitative Disclosures about Market Risk**

*Commodity      Risk*

*Interest      Rate      Risk*

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**Item      4***-***Controls      and Procedures** 

**Evaluation      of Disclosure Controls and Procedures**

**Changes      in      Internal Controls Over Financial Reporting**

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**PART      II - OTHER INFORMATION**

**Item      1**-**Legal      Proceedings**

**Item        1A**-**Risk        Factors**

**Item      2**-**Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3**-**Defaults      Upon Senior Securities**

**Item      4**-**Submission      of Matters to a Vote of Security Holders**

*Election      of      Board of Directors*

|                                                     |   | **For** |       | **Withheld** |   |
|----------------------------------------------------------|--------|---------|------------|--------------|--------|
| Robert                  E.                  Mellor       |   |    | 11,747,168 |         |   | 138,181 |   |
| Sara                  L.                  Beckman        |   |    | 11,864,380 |         |   | 20,969 |   |
| Eric                  S.                  Belsky         |   |    | 11,862,236 |         |   | 23,113 |   |
| James                  K.                  Jennings, Jr. |   |    | 11,865,029 |         |   | 20,320 |   |
| Norman                  J.                  Metcalfe     |   |    | 11,861,271 |         |   | 24,078 |   |
| David                  M.                  Moffett       |   |    | 11,858,421 |         |   | 26,928 |   |
| R.                  Scott                  Morrison, Jr. |   |    | 11,860,184 |         |   | 25,165 |   |
| Peter                  S.                  O’Neill |   |    | 11,612,598 |         |   | 272,751 |   |
| Richard                  G.                  Reiten      |   |    | 11,668,145 |         |   | 217,204 |   |

*Ratification      of      Independent Registered Public Accountants*

| **For**    |   | **Withheld** |   | **Abstain** |   | **Not                Voted** |
|------------|--------|--------------|--------|-------------|--------|------------------------------|
| 11,834,032 |   | 34,646       |   | 16,671      |   | —                      |
|       |   |         |   |        |   |                         |

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**Item      5**-**Other      Information**

**Item      6**-**Exhibits**

| (a)    |   | Exhibits   |   |                                                                                             |
|--------|--------|------------|--------|--------------------------------------------------------------------------------------------------|
|   |   |       |   |                                                                                             |
|   |   | **Number** |   | **Description**                                                                                  |
|   |   |       |   |                                                                                             |
|   |   | 11.0       |   | Statement                regarding computation of earnings per share (see Note                2) |
|   |   |       |   |                                                                                             |
|   |   | 31.1       |   | Section                302                Certification                                          |
|   |   |       |   |                                                                                             |
|   |   | 31.2       |   | Section                302                Certification                                          |
|   |   |       |   |                                                                                             |
|   |   | 32.0       |   | Section                906                Certifications                                         |

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**SIGNATURES**

|                                            | BUILDING                MATERIALS HOLDING CORPORATION                                                                                                                                |
|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                            |                                                                                                                                                                                 |   |
|                                            |                                                                                                                                                                                 |   |
| Date:                May 8, 2006           | */s/                Robert E. Mellor*                                                                                                                                                |   |
|                                            | Robert                E.                MellorChairman                of                the Board, President and Chief Executive Officer(Principal                Executive Officer) |
|                                            |                                                                                                                                                                                 |   |
|                                            |                                                                                                                                                                                 |   |
| Date:                May 8,                2006 | */s/                William M. Smartt*                                                                                                                                               |   |
|                                            | William                M.                SmarttSenior                Vice                President and Chief Financial Officer (Principal                Financial Officer)          |

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