A contractor should not only consider the costs of equipment needed to build the project, whether owned or rented, but also the operating expenses. Is this statement true or false?

The statement is true because a contractor must take into account not only the initial costs of acquiring the equipment necessary for a project, but also the ongoing operational expenses associated with its use. Operating expenses can include fuel, maintenance, repairs, and labor costs related to operating the equipment. Failing to factor in these costs can lead to inaccurate budgeting and financial planning, potentially resulting in the contractor facing unexpected financial pressures during the project.

In construction and project management, understanding the total cost of ownership, which encompasses both upfront equipment expenses and ongoing operating costs, is crucial for ensuring profitability and maintaining budgetary control. This vital consideration enables contractors to make informed decisions that reflect the true economic implications of their project investments.

Other options might address scenarios where costs vary by project type or scope or suggest that such considerations are unnecessary in specific contexts. However, the comprehensive approach to budgeting that includes both capital and operational expenses is a best practice that applies universally to contractors in project planning.