What is Management Reserve?

In project management, the Management Reserve is analogous to a reserve fund set up for unexpected demands throughout a project, similar to having extra money in your wallet for unanticipated bills. It is a percentage of the project money or time set aside by the project manager to deal with unanticipated difficulties or modifications that may arise along the route. This reserve, like a backup plan, is not for routine project duties but serves as a safety net for unforeseen scenarios such as rapid changes, extra work, or difficulties that may arise and require more resources or time than originally intended. Its purpose is to assist handle the unexpected without jeopardizing the project’s main budget or deadline.