Besides the actual cost of the materials themselves, what other cost must a builder recognize as being a material cost?

The recognition of material costs in construction encompasses not just the direct purchase price of materials, but also several additional expenses that contribute to bringing those materials to the construction site in a usable state. This includes delivery costs, which cover transportation of materials from the supplier to the job site; material inspection fees, which ensure that the materials meet the required standards and specifications; and storage costs, which may be incurred if materials need to be stored temporarily before being used in the project.

All these factors are essential to the overall cost accounting for a construction project, as they affect the financial planning and budget management. By considering these additional costs, a builder can present a more accurate projection of expenses and ensure that the project is appropriately funded, which is crucial for maintaining profitable operations. Thus, recognizing all these components as material costs is vital for effective contractor business practices under Louisiana law, as it aids both legal compliance and sound financial management.