PMP Exam Preparation: Point of Total Assumption (PTA)
Channel: SirGanttalot
Date: 11/10/2012

Sir Gantallot explains another concept that is likely to come up in your PMP Exam.  A new development in contracting is to use Fixed-Price Incentive Fee contracts where cost overuns are partly shared by both the vendor and the buyer.  As a result, a Point of Total Assumption or PTA can be calculated.  Sir ganttalot explains what the PTA means in practice, and explains the formula by with the PTA can be calculated.