Profit in Construction: Difference between revisions

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=OSE Case=
=OSE Case=
*For OSE to charge the industry standard rate, OSE would have to charge about 20% developer profit.
*If OSE is serving as the developer, OSE to charge the industry standard rate, OSE would have to charge about 20% developer profit.
*Based on OSE's integrated-enterprise architecture, OSE could function either as the developer, general contractor, or builder - or any combination of the above. A [[Distributive Enterprise]] is in a position to capture any or all of these 3 value streams.


=More=
=Links=
*[[Seed Home 2 Cost Structure]]

Latest revision as of 17:03, 27 June 2022

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

  • If OSE is serving as the developer, OSE to charge the industry standard rate, OSE would have to charge about 20% developer profit.
  • Based on OSE's integrated-enterprise architecture, OSE could function either as the developer, general contractor, or builder - or any combination of the above. A Distributive Enterprise is in a position to capture any or all of these 3 value streams.

Links