Profit in Construction
From Open Source Ecology
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.
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