Difference of Contingency Reserve and Management Reserve. In Project management

Contingency Reserve is called to amount of money or Time which is preserved for predicted ambiguities or so called identified risks . Such amount of money will estimated using OPAs , Organization policies or from benchmarking . The figure will be accepted by key stakeholders then added in type of percentage , fixed number or result of quantitative analysis estimates . The above mentioned reserves can be added to components of Work structure from activity or to project level . Through the project when the project space will more detailed and time spent , the need of such contingencies will be assessed and if necessary implemented .the amount of above mentioned reserves are well documented in typical baselines. it’s worth to mention that project manager has authority for using contingency reserve

Management Reserve is amount of time or money that is preserved for unpredictable events or obligatory activities where is mentioned or referred in project vital documents like Scope or Charter . such reserves are held for omitted efforts , while they are not components of schedule or cost baseline . it will addressed and handled outside of authority of project manager , So Sponsor, Product owner or Pmo will be accountable . since they will be added to cost/schedule baseline thus requires an approved change to the baselines where will be addressed in Configuration management knowledge are of PMBOK.

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