You are negotiating a contract with the WeScamU Company and you are concerned that they will overcharge you for their costs, so you have included a PTA (point of total Assumption) clause in the contract. From the information provided below, what is the PTA? Target cost = $482,000.00 Target Price = $531,500.00 Ceiling prices = $661,500.00 Buyer/Seller ratio is 80/20 for overruns. Note: enter dollar amount only and two decimal places. For example, 450000.50

Information Technology Project Management
9th Edition
ISBN:9781337101356
Author:Kathy Schwalbe
Publisher:Kathy Schwalbe
Chapter12: Project Procurement Management
Section: Chapter Questions
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You are negotiating a contract with the
WeScamU Company and you are concerned
that they will overcharge you for their costs, so
you have included a PTA (point of total
Assumption) clause in the contract. From the
information provided below, what is the PTA?
Target cost = $482,000.00
Target Price = $531,500.00
Ceiling prices = $661,500.00
Buyer/Seller ratio is 80/20 for overruns.
Note: enter dollar amount only and two decimal
places. For example, 450000.50
Transcribed Image Text:You are negotiating a contract with the WeScamU Company and you are concerned that they will overcharge you for their costs, so you have included a PTA (point of total Assumption) clause in the contract. From the information provided below, what is the PTA? Target cost = $482,000.00 Target Price = $531,500.00 Ceiling prices = $661,500.00 Buyer/Seller ratio is 80/20 for overruns. Note: enter dollar amount only and two decimal places. For example, 450000.50
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