Contingency reserve
Project Management Professional glossary · Project Management Professional
Definition
Time or money allocated in the schedule or cost baseline for identified risks (known unknowns).
Contingency reserve in plain English
Picture a road trip budget: you planned 1,000 (BAC), you've spent 600 so far, and based on how fast you're burning cash you project the whole trip will cost $1,200 (EAC). The gap between the plan and that projection is the kind of story Contingency reserve is trying to tell — not a random accounting label, a forecast of whether you'll finish over or under. Hold onto this precise job description: Time or money allocated in the schedule or cost baseline for identified risks (known unknowns). On a stem, name whether Contingency reserve is about timing, ownership, measurement, or delivery style — then eliminate the answer that borrows a cousin concept from the wrong phase.
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