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.
According to NIST, the cost in 2005 dollars for adding a multipurpose network sprinkler system to a house under construction was approximately $2,075 for a 3,338-square-foot colonial-style house, $1,895 for a 2,257-square-foot townhouse and $829 for a 1,171-square-foot ranch house.