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.
Theyâre not expensive! The average costs for a fire sprinkler system are as follows: 1  A complete fire sprinkler system integrated into a new construction project costs about $1 â 2 per square foot. 2  This includes equipment and installation. 3  Retrofitting an existing building usually costs between $2 â 7 per square foot.