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In a project, a cost incentive contract has been awarded to a contractor with the following parameters ?

Target cost: $1,,Target contractor fee: $,Cost benefit sharing ratio:%/%Price ceiling: $1,

What is the point of total assumption (PTA, breakpoint) of the project?A. $1,,B. $1,,C. $1,,D. $1,,

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Question added by DR MD ANWAR HOSSAIN , Moderator , bayt.com
Date Posted: 2016/10/12
Abdul Rehman
by Abdul Rehman , Electrical Engineer , Tamdeed Projects

Thank you for the invitation. Without the figures being given it is not possible to do calculations here.

hisham abu dagga
by hisham abu dagga , Project Manager / مدير مشاريع , مؤسسة عبدالكريم العواض للمقاولات

Thanks for invitation

I Agree answer Mr Ihab zake

Sattar Abdulkarim  Mohamed
by Sattar Abdulkarim Mohamed , Country Sales Director , Ideal Technical Solutions

Thank you for the invitation.  I have checked your above question. I have found that your question and choices  confirmed were not  enough clear to me in order to set up my answer. Sorry for that. I hope that my colleagues answer will meet your requirements.

Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Thanks for the invite.

With the available information about figures & options which of course is not all that clear, using standard PTA formula, according to me PTA works out to be 1$ .

I can not answer the question because the numbers are not shown clearly in the question and in options.

Ihab Zaki
by Ihab Zaki , Chief Technology Officer (Cto) , EGID

Please check numbers and percentage is question.

In general solution should be:

Target Price = Target Cost + Target Fee

PTA = [(Ceiling Price - Target Price)/Buyer's Share Ratio]+Target Price

Hope it's clear

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