What is Contingency Reserve?

Consider the contingency reserve to be your emergency money. You know how occasionally unexpected things happen, like when your car breaks down and has to be repaired? So, throughout a project, unexpected things might happen, such as more work or a part taking longer to arrive. The contingency reserve is similar to having some additional money set aside in case something unexpected happens during your project. It’s there to assist cover the expense or time if anything unexpected occurs, helping you to continue on pace without being surprised.