A method is provided for setting a fastener in a workpiece. The method includes: monitoring a parameter of the power tool during operation of the power tool, where the parameter is indicative of the placement of a fastener being driven by the power tool in relation to the workpiece; detecting, a change in the parameter, where the detected change in the parameter indicates that the power tool became disengaged with the fastener; modifying operation of the power tool in response to the detected change in the parameter; subsequently detecting a second change in the parameter; and interrupting transmission of torque to the output spindle in response the detected second change in the parameter, thereby properly setting the placement of the fastener in relation to the workpiece.