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Project Management & Agile · Foundational

Contingency Reserve

Time or money allocated in the baseline for identified risks with planned responses ('known-unknowns').

Definition

Contingency reserves are part of the schedule or cost baseline and are controlled by the project manager within the approved plan.

Example

$40,000 reserved for the identified risk of a vendor price increase.

Exam tip

Contingency = known-unknowns, inside the baseline; management reserve = unknown-unknowns, outside it.

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