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TOPIC: Point of Total Assumption?

Point of Total Assumption? 11 months 1 week ago #15346

  • Jessica Jones
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Hello,

I'm into the home stretch of my PMP prep (3 weeks to go!) and I'm focusing on practice exams then research on where I went wrong. I wanted to enquire about "point of total assumption". This appears to be a calculation based on fixed price contracts. It has popped up in the book "How to get every Contract Question right on the PMP exam" (Aileen Ellis) and also on the Oliver Lehman practice exam I did yesterday (allegedly based on the PMBOK 6th edition although the vast majority of questions I got wrong pulled from books I'd never heard of...). However, I haven't seen the slightest mention of this formula either in the PMBOK Guide or my Kim Heldman study guide.

Is this something I need to know? Any other contract formulae I've missed? I'd be surprised if I completely missed a formula in the PMBOK Guide, but I know Lehman is a respected source of practice questions, so I'm a bit confused.

Thanks!

J

Point of Total Assumption? 11 months 1 week ago #15351

  • Ty Weston, PMP
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PTA is a formula that I recommend remembering as one of the basic formulas needed. It is used extensively in Fixed Price Incentive Fee Contracts and really, these contracts cannot be done without it. The thing about the PMI test is this, you should be gathering and remembering information from many sources, not just the PMBOK guide. Again, I believe this is one that could pop up during the test and you should be able to remember it.
PMPrepcast has a formulas course, which I recommend here: www.project-management-formulas.com/index.php/product
It covers 47 formulas that could appear on the test.
Though I was able to put to memory all 47 formulas, the test only gave me a handful of questions; the key was that I was prepared.
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