Contingency reserve and Management reserve work
Karen is the project manager in a project which involves many functional managers. He is working on the reserve which deals with the unknown. Additional reserves are allocated to manage the unforeseen risks. Karen identified One of the options given below is not part of the cost baseline but included in the project budget. Which one is it?
A. Contingency reserve.
B. Management reserve.
C. Both A& B.
D. None of the above.
Answer: Option B is correct.
- Management reserve is not part of cost baseline but it is included in the project budget.
- Additional reserves allocated to manage the unforeseen risks. It is not included in the schedule baseline.
It is associated with unknown-unknowns.
- Cost baseline: project cost + contingency reserve
- Cost budget: cost baseline + management reserve