Reserve Analysis - Contingency Reserve and Management Reserve

[@pmclounge]

Check out more Schedule Management videos here goo.gl/sKpxmP Also, Cost Management videos: goo.gl/4ZRw4N and Estimation Technique videos: goo.gl/gijvbg

[@YOUEC15]

Contingency reserve...is definitely not only includes buffer time, it for sure includes funds also

[@amikorwa]

Sir when is actually project reserve analysis done i.e. during plan risk management or planning risk responses or monitor and control risk or qualitative risk analysis?

[@pmclounge]

Hi Amit, note that Reserve Analysis is actually a planning tool that can be used in planning processes like 'Estimate Activity Duration' as an example. Don't forget to subscribe for more 😊👍

[@Eng.Ibrahim_Khalid]

Can I write some conditional funding in the charter instead of Reserve Analysis? For example, as you mentioned if we hit big rocks that would cost 50k$, but if we didn't that money would be an extra profit for the Project Manager. Which will be questionable to the Project sponsor and unwelcome. So can we just write conditional funding in the charter that says (If we hit big rocks 50$K will be funded otherwise, the project manager won't be responsible).

[@pmclounge]

While it might seem tempting to add conditional funding directly into the charter, it’s generally not recommended. Reserve Analysis exists specifically for those 'big rocks' or unexpected risks, and needs to be planned for. Writing conditional funding into the charter could raise concerns with the project sponsor. Instead, it's better to handle such risks through well-defined reserves. Thanks for bringing up a good discussion point though! 👍

[@sumitmitra7336]

If for a planned risk response ( A vendor defaulting on supplying project related equipment's), a contingency reserve is kept & as the project progresses , that risk doesn't happen , then what should the PM do next 1. Update the risk register & release the contingency reserve associated with that risk 2 . Retain the contingency reserve as a buffer for overall project risks 3. Inform the project sponsors & stakeholders that the procurement equipment's have been successfully purchased 4. Update the lessons learnt register stating that contingency reserve was not necessary

[@N3770SS]

This video was a lifesaver for a presentation I needed to do. Thank you.

[@pmclounge]

You're welcome. Don't forget to subscribe 👍🙂

[@robertmusilli5198]

great

[@pmclounge]

Thank you Robert 😊👍

[@ameenpcc]

Suppose a PM had a contingency reserve for his project as well as the management had a management reserve for the same project. Now the project has been completed successfully (cheers!) and no risk was materialized. Therefore no reserve was utilized. Now how to use or release these reserves? Who is authorized to release, who are the recipients, what is the process? Appreciate your detailed explanation.

[@pmclounge]

The project manager has the authority to release the contingency reserve back to management. In real life, if there really is a project that went out without any hiccups, the project manager might as well ask the management to spend a part of contingency reserve on a lunch outing 😉👍

[@Kathaisolli_storyteller]

Excellent Explanation

[@pmclounge]

Glad you liked it 👍😊

[@dulsafuminoro2688]

I love this channel!

[@pmclounge]

We love you 3000 😉😊