Which of the following BEST describes the “point of total assumption” for a contract?

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You are managing a construction project using a fixed price (FP) contract. The c...
Posted by:
Muhammad Farooq
06-June-2018

A. The point in a cost-plus contract where the buyer assumes that the seller will need to be paid

B. The total cost of a T&M contract

C. The point in a fixed price contract where the seller has to assume all costs going forward

D. The total number of resources required for a contract

Procurement Contract Review Project Management Contracts Contracting

Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/09/02

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4 Answers

by Imran Ahmed , Manager-Planning & Delay Analyst , Nesma United Industries (NUI) Saudi Arabia

Option-C. The point in a fixed price contract where the seller has to assume all costs going forward.

Since Fixed Price contract has the highest risks considering all assumptions (Scope of works)

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by Ghulam Farid , Contracts Officer , Abu Dhabi Company for Onshore Petroleum Operations (ADCO)

Yes I endorse Mr. Ahmad's response as PTA is falling under FP/ Insentive contracts

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by Deleted user

Don't have time go into details:

https://en.m.wikipedia.org/wiki/Point_of_total_assumption

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Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+

by Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+ , IT Security Expert , Information Unlimited Inc. (IUI)

The COR (Contract Office Represantative)

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