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TOPIC: Funding requirements and Management Reserves

Funding requirements and Management Reserves 1 year 6 months ago #27372

  • Francois Verschave
  • Francois Verschave's Avatar Topic Author
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Hi all,
would someone please help me clarify a mismatch btw the Prepcast and the PMBOK Guide?

Do funding requirements include management reserve (MR) ?
=> YES, acc. to PMBOK Guide Ed 6 chapter 7.3.3.1 "Cost Baseline" Figure 7-9
=> NO, acc. to Prepcast video L07.03: Determine Budget - Part 2 at 17:00 (total funding = BAC)

Bonus question, in this Prepcast lesson Cornelius mentions funding requirements include anticipated liabilities such as cost of quality, warranty costs.
I understand these are 'known unknowns' hence belong to the cost baseline as part of the project contingency reserves. Right?

Thank you for your much appreciated support!
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