- Contingency Reserve: The cost or timeline that is allocated above the estimate to reduce the risk of potential overruns.
- Management Reserve: The cost or timeline that is allocated above the agreed upon project cost (including reserve) to account for situations that cannot be predicted.
Friday, January 20, 2012
At many of the training sessions I’ve taught, I’ve received a lot of questions about how to handle contingency. This is a great topic to share. Let’s start with a short explanation of the different types of contingency. Sources may differ but they tend to define two general types of contingency:
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