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 For example, a home that is 1,600 square feet should cost anywhere from $1,600 to $4,600 for a complete sprinkler system. 2  According to FireSprinklerInitiative.org, the average cost of fire sprinklers is around $1.61 per square foot. 3  This was a price noted by the Fire Protection Research Foundation. 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.