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 Most companies will want to install the sprinkler system throughout the whole home. 2  This is going to include the basement as well as all of the main floors. 3  On average, plan on spending anywhere from $1.50 to as much as $2.85 per square foot to have a complete system installed. For those that are building a new home, adding a new fire sprinkler system will only increase your home mortgage by $3 to $5 per month on the average 30-year note. 2  Factor in the home insurance, and you may actually come out ahead.