For a discussion. of the related concepts of entrepreneurial incentive, developerâs profit, contractorâs profit, profit, and project profit, see Appraisal Institute, The Appraisal of Real Estate, 13th ed.
According to the Fire Protection Research Organization's 2009 Fire Sprinkler Cost Assessment, sprinkler installation costs homebuilders $0.38-$3.66 per sprinklered square foot, with an average cost of $1.61 per sprinklered square foot. For an average 2,200-square-foot home, expect to pay about $3,542.
1 In a new home, the cost may add 1% to 2.75% to the total new construction cost. 2  Nationally, on average, home fire sprinkler systems cost $1.61 per square foot of sprinkler space in new construction. The costs of installing a home sprinkler system vary depending on many factors, including the location of the home, its water pressure and added fees. 2  In a new home, the cost may add 1% to 2.75% to the total new construction cost.