Dec 10, 2019 · Though not a crucial question from the PMP® exam point of view, it still needs a detailed discussion. In this blog, I will address the puzzling PTA concept with simple to …

How to Calculate the Point of Total Assumption for Fixed Price Incentive Fee Type of Contracts. PMP questions on FPIF come with PTA calculations.

The point of total assumption (PTA) is a point on the cost line of the profit-cost curve determined by the contract elements associated with a fixed price plus incentive-Firm Target (FPI) contract …

Although not included in the PMI online lexicon nor as a term within the PMP® certification exam, project managers should know the PTA is the cost point at which the seller has agreed to …

Mar 3, 2024 · What is the Point of Total Assumption in Project Management? The point of total assumption (PTA) is a key concept in FPIF contracts that represents the cost point at which …

Point of Total Assumption (PTA), is part of Project Procurement Management knowledge area of PMP/CAPM exam. This video explains the concept with example.

Aug 9, 2023 · This article discussed point of total assumption formula (PTA) for a Fixed Price Incentive Fee (FPIF) Contract. It provides example & derives PTA formula.

Jun 25, 2025 · The Point of Total Assumption is a cost escalation control mechanism commonly used in fixed-price incentive fee contracts. This mechanism protects the interests of both the …

The point of total assumption (PTA) is a price determined by a fixed price plus incentive fee contract (FPIF) above which the seller bears all the loss of a cost overrun.

PTA = [ (Ceiling Price – Target Price) / Buyer’s share ratio ] + Target cost. PTA applies only to fixed price incentive fee contracts. Basically it helps you calculate the amount above which the …