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.
The price depends on a variety of factors. 1  A complete sprinkler system for new construction generally costs $1 to $2 per square foot including all equipment and installation. 2  Retrofitting an existing building is more expensive-usually about $2 to $7 per square foot. Retrofitting an existing building is more expensive-usually about $2 to $7 per square foot. 2  High rise building retrofitting usually costs $2 to $4 per square foot. 3  In rare cases, historic buildings can cost $10 or more per square foot to retrofit.