TOPIC: Contingency Reserve

Hi,

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?

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.

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?

Hi,

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