Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Dec 31, 2015 3:34 PM
Replying to Steven Zachary
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Definitely the BA or the architect in this case!!
I was talking more generally and not towards you situation!
Talk to you next year!
Could be also the service provider, if any. Saving Changes...
Kathy CastleAuthor at https://www.projectcubicle.com/| FreelanceTx, United States
Management Reserve is a planned amount of fund, time or resource which is added to an estimate for unforeseeable situations. Project manager should get approval from the project sponsor in order to use it.
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1 reply by Rami Kaibni
Apr 19, 2018 2:24 AM
Rami Kaibni
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Kathy,
Thanks for your input. In a sense, you are correct but I am not sure I fully agree with you. Management reserve is not planned as you can’t plan for unknown unknowns, it is a percentage agreed by Executive Management & Sponsor and it is normally in funds, not resources.
Moreover, the management reserve is not added to the estimates, it is added to the overall budget and overall schedule but not the cost baseline or schedule baseline. The contingency reserve is the only risk buffer added to the estimates.
You are correct hownever, that you need senior management approval to use this fund but also if you want to use it, you will have to change your schedule and cost baslines.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Apr 19, 2018 2:02 AM
Replying to Kathy Castle
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Management Reserve is a planned amount of fund, time or resource which is added to an estimate for unforeseeable situations. Project manager should get approval from the project sponsor in order to use it.
Kathy,
Thanks for your input. In a sense, you are correct but I am not sure I fully agree with you. Management reserve is not planned as you can’t plan for unknown unknowns, it is a percentage agreed by Executive Management & Sponsor and it is normally in funds, not resources.
Moreover, the management reserve is not added to the estimates, it is added to the overall budget and overall schedule but not the cost baseline or schedule baseline. The contingency reserve is the only risk buffer added to the estimates.
You are correct hownever, that you need senior management approval to use this fund but also if you want to use it, you will have to change your schedule and cost baslines. Saving Changes...
Tamer Zeyad SadiqAssistant Cost Manager| Turner & TownsendRiyadh, Ar Riyad, Saudi Arabia
We know as per PMBOK a management reserve is unknown unknown risk including with project budget. I think for estimation for this reserve is from lesson learned and experience when some problems, defects, lack of knowledge, which were faced these problems before. The top management can estimate this reserve not more 10% of contract or as per contract condition
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1 reply by Rami Kaibni
Apr 19, 2018 12:18 PM
Rami Kaibni
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Tamer,
In a sense you are correct but the 10% is not a fixed number. It depends and also management reserve is part of the Overall Budget but not Budget At Completion as the BAC = Cost Baseline. Just thought to highlight this.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Apr 19, 2018 2:27 AM
Replying to Tamer Zeyad Sadiq
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We know as per PMBOK a management reserve is unknown unknown risk including with project budget. I think for estimation for this reserve is from lesson learned and experience when some problems, defects, lack of knowledge, which were faced these problems before. The top management can estimate this reserve not more 10% of contract or as per contract condition
Tamer,
In a sense you are correct but the 10% is not a fixed number. It depends and also management reserve is part of the Overall Budget but not Budget At Completion as the BAC = Cost Baseline. Just thought to highlight this.
...
1 reply by Tamer Zeyad Sadiq
Apr 19, 2018 3:24 PM
Tamer Zeyad Sadiq
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Yes dear!!! there is not limited!!!!
Saving Changes...
Tamer Zeyad SadiqAssistant Cost Manager| Turner & TownsendRiyadh, Ar Riyad, Saudi Arabia
Apr 19, 2018 12:18 PM
Replying to Rami Kaibni
...
Tamer,
In a sense you are correct but the 10% is not a fixed number. It depends and also management reserve is part of the Overall Budget but not Budget At Completion as the BAC = Cost Baseline. Just thought to highlight this.
Yes dear!!! there is not limited!!!! Saving Changes...
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