Project Management Professional (PMP)® Exam FAQs - Point of Total Assumption (PTA) ? iZenBridge

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The video talks about the Point of Total Assumption.

The point of total assumption (PTA) is the point above which the seller bears all the losses of an additional cost overrun on a fixed price 'incentive fee' (FPIF or FPI) contract.
PTA = ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target Cost

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The Project Management Professional (PMP), PMBOK, The Agile Certified Practitioner (PMI-ACP), and The Professional in Business Analysis (PMI-PBA) is a registered mark of the Project Management Institute, Inc.
PMBOK is a registered mark of the Project Management Institute, Inc.

Materials in this video are based on the text, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017.

The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.

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