Well the project management fees are (in the developments I worked at) are eaten up by, ahem, project management. Each had a staff of about 10 or so overseeing the project. Just guessing that each made about $50K so that's half a mil right off the top. And as we all know, that employee costs run about 30 - 40 percent of the wage so that's another $200K. So we're talking a cool 3/4 mil.
For the record, at one development (condos) I was out with the principal for lunch. We were going over all the headaches etc and (backstory, I've known him for about 8 yrs, been to his house, know his kids etc) I asked him: seriously, how much are you going to make on this project when it's all said and done because these deficiencies are killing us. He said "honestly? about a million...." and I said "whoa, that's not much considering how much it's costing you to put up" he said "well, a million's a million no matter how you slice it...".
Think of it another way: costs 20 mill to put up a building, he makes 1 mil on it, that's what....5 %??? not very much!!!! I worked for companies that freaked if they didn't hit 50% profit......
