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TOPIC: Is contingency reserve included in baselines

Is contingency reserve included in baselines 1 year 9 months ago #15823

  • Vikram Natarajan
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Are both contingency and management reserves included as part of project budget or cost baselines?

Also say the situation for contingency reserve occurs can the PM use those funds without going through change control and use funds right away?

If its already baselined then the PM does not have to go through change control right?

Clarifications would be greatly appreciated

Is contingency reserve included in baselines 1 year 9 months ago #15826

  • Jessica
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Contingency reserves are part of the cost baseline. Management reserves are not. Section 7.3 of the PMBOK guide provides more detail. In order to access management reserves, the PM needs to go through the change control process in order to add the necessary management reserves into the cost baseline.

Is contingency reserve included in baselines 1 year 9 months ago #15828

  • Vikram Natarajan
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Found out the answer

Contingency reserve is included in cost baseline, no range request is required to access the funds. Management reserves are not included in cost baselines and change request is needed. Tey however a part of overall project budget

having said that, in the EVM calculations say BAC and EAC, are contingency reserves and management reserves included in BAC/EAC?

Based on the definitions it implies BAC includes both CR + Management reserves. EAC/ETC not sure?

Is contingency reserve included in baselines 1 year 9 months ago #15843

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Since contingency reserves are part of the cost baseline and management reserves are not, contingency reserves are included in the BAC and management reserves are not.

EAC may or may not include management reserves. If a project is running well, everything falls into place, and the project is running ahead of schedule and under budget, the EAC will be less than the BAC and thus, no need to tap into those management reserves. On the other hand, if the project is running a bit over budget and you need to request a bit of those management reserves to take it to the finish line, then the EAC will include the management reserves.
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