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Mr.El Sayed Moustafa is right
Contingency reserve: “a planned amount of money or time which is added to an estimate to address a specific risk.”
Management reserve: “a planned amount of money or time which is added to an estimate to address unforeseeable situations.”
Management reserve:
1. The planned amount of money or time which is added to an estimate to address unforeseeable situations and unidentified risks.
2. Management approval is required to use management reserve.
3. It is calculated as a percentage of the cost or time of project.
Contingency reserve:
1. The planned amount of money or time which is added to an estimate to address a identified/specific risk.
2. The project manager has authority to use this reserve.
3. It is estimated based on Expected monitory Value or decision tree mehtod.
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