Profit in Construction

General Figures

• How much profit does a developer make? 20% from project cost. [1]
• How much profit does a general contractor make?
  • typical 7-10% markup on materials [2]
  • Typical 10-20% of overall cost on average [3]
• Gross profit is before overhead [4]

Lot Costs

• $47k in Tallahassee [5]
• Average home lot is $85k [6]

OSE Case

• For OSE to charge the industry standard rate, OSE would have to charge about 20% developer profit.