Contingency Reserve Glossary Definition

Term Contingency Reserve
Definition

A Contingency Reserve is budget or schedule set aside for identified risks or uncertainties within the approved project plan.

Context & Usage

It differs from management reserve because it is tied to known uncertainty and is usually part of the performance baseline.

Project managers, sponsors, and project-controls staff use this concept in budget reviews, performance reporting, forecasting, and variance conversations.

Related concepts include Budget, Cost Baseline, Planned Value, Earned Value, Actual Cost and Cost Variance.

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