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Project Management & Agile · Intermediate

Management Reserve

Budget withheld from the cost baseline for unforeseen work within project scope ('unknown-unknowns').

Definition

Using management reserve requires management approval through change control, and the cost baseline is updated when it is applied.

Example

Unexpected new regulation requires $25,000 of extra testing funded from management reserve.

Exam tip

Management reserve is not included in BAC or EVM calculations.

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