PMP Formula: Point of Total Assumption

PMP Formula Point of Total Assumption (PTA)

Point of Total Assumption (PTA) is the point above which the seller starts assuming the cost of the contracted work. It is the amount above the losses of extra cost overrun are accepted by the seller.

Formula Definition
PTA Point of Total Assumption
= ((Ceiling Price - Target Price) ÷ Buyer's Share Ratio) + Target Cost
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