Profit in Construction

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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.