Do you need customer support or technical assistance? Click here to submit a support ticket...

TOPIC: Contingency Reserve

Contingency Reserve 5 years 6 months ago #15928

  • Olubukola Ogunyemi
  • Olubukola Ogunyemi's Avatar Topic Author
  • Offline
  • Fresh Boarder
  • Fresh Boarder
  • Posts: 5
  • Thank you received: 0

Please if project manager is to make use of part of the contingency reserve in a project, does he need to submit a change request?

Contingency Reserve 5 years 6 months ago #15954

  • Joe Pang
  • Joe Pang's Avatar
  • Offline
  • Gold Boarder
  • Gold Boarder
  • Posts: 250
  • Karma: 26
  • Thank you received: 99
Hi Olubukola,

Using the money from contingency reserve will not require a change request because it is included in the cost baseline. So the answer is no.
Toronto-based project manager, I specialize in capital construction projects and digital transformation projects for the power & utility sector.

I welcome all types of collaboration opportunities, feel free to connect with me on Linkedin

Contingency Reserve 3 years 9 months ago #23011

  • Anonymous
  • Anonymous's Avatar
  • Visitor
  • Visitor
After applying contingency reserve, is there any need for change request to update coat baseline?
I know when Management reserves are used, a change request is made to update cost baseline as cost baseline is added with Management reserve. Is that the case with Contingency Reserves as well?

Contingency Reserve 3 years 9 months ago #23023

  • Gabriella Dellino, PMP
  • Gabriella Dellino, PMP's Avatar
  • Offline
  • Gold Boarder
  • Gold Boarder
  • Posts: 266
  • Karma: 24
  • Thank you received: 93

I'm not sure I understand your question correctly. Contingency reserves are already included in the cost baseline, therefore the cost baseline will not be affected/updated.
In fact, when a risk occurs and calls for the use of a contingency reserve, the estimates will be updated, and the overall contingency reserve will decrease. The baseline, however, will not change.

An exception I can think of is if the contingency reserve allocated to that risk is not sufficient to implement the planned risk response, so management reserves may be needed. This will indeed require a change request; but - as you recognise - this is needed because management reserves come into play.

Gabriella Dellino, PhD, PMP
PMPrepCast Community Moderator
Moderators: Yolanda MabutasMary Kathrine PaduaJohn Paul BugarinHarry ElstonJean KwandaDaniel SoerensenAlexander AnikinElena ZelenevskaiaChristine Whitney, PMP

Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®