## Reply: free Float

 Name E-mail Your e-mail address will never be displayed on the site. Subject Message [quote="Rahul Kakkar" post=5092]Hi Mohd, Here are my two cents: Total float is the amount of time that an activity can be delayed without delaying the project completion date. On a critical path, the total float is zero. Total float is often known as the slack. You can calculate the total float by subtracting the Early Start date of an activity from its Late Start date (Late Start date – Early Start date), or Early Finish date from its Late Finish date (Late Finish date – Early Finish date) Free float is the amount of time that an activity can be delayed without delaying the Early Start of its successor activity. You can calculate the free float by subtracting the Early Finish date of the activity from the Early Start date of next activity (ES of next Activity – EF of current Activity). Hope this helps.[/quote]

## Topic History of : free Float

Max. showing the last 6 posts - (Last post first)
4 years 5 months ago #5129

Mohd Salik

dear Steve,
I appreciate your answering my question. but where have you used 100,000/- of target contractor fees.

Thanks.
M.S.Bhaiji
4 years 5 months ago #5117

Steve Sandoval

Hello Mohd,

The formula for the Point of Total Assumption is:
PTA = ( (Ceiling Price - Target Price) / (Buyer's Share Ratio) ) + Target Cost

PTA is the expense level after which the seller pays 100% of contract costs. We can construct this logically:
1. You start with the target cost
2. For anything above the target cost but below the price ceiling, the buyer only pays their share ratio. To find out what contract expense this translates to, you *divide* by that share ratio.
3. You then add #1 (target cost) and #2 (the amount of additional spending required for the buyer to hit their ceiling price)

So in this case,
PTA = (1,200,000 - 1,000,000)/0.20 + 1000000
PTA = 2,000,000

However, in your question you stated a "cost benefit sharing ratio". The way this is worded it is not entirely clear which ratio is the seller's and which is the buyer's. In this case, I have assumed that the buyer's share ratio is 20%.
4 years 5 months ago #5114

Mohd Salik

Hi1,
Could you plz help me solve this problem.

In a project a cost incentive contract has been awarded to a contractor with the following parameters.
Target Cost : 1,000,000

target contractor Fees : 100,000

Cost benefit sharing ratio : 80%/20%

Price Ceiling 1,200,000

What is the PTA of the project.
4 years 5 months ago #5102

Rahul Kakkar

Mohd Salik wrote: Thanks Rahul,
For clearing my doubt on free float.

Regards
M.S.bhaiji

You're most welcome. Feel free to ask any further queries that you may have.
4 years 5 months ago #5099

Mohd Salik

Thanks Rahul,
For clearing my doubt on free float.

Regards
M.S.bhaiji
4 years 5 months ago #5098

Craig Arcuri

Simon Ngembu wrote: Is there any link between the concept of float and feeding buffers?

The concept of Float is a term used in the Critical Path Method. I've worked in Matrix organizations and it becomes complicated when you do not have all team members dedicated 100% to your project.

In this situation, Critical Chain Method may be more useful. It is the Critical Chain Method which utilizes Feeding Buffers instead of the concept of float. The Feeding Buffers are on the non-critical chain to help insure that delays on the non-critical chain do not affect the critical chain.

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