Contingency reserve. Who is right. Rita or Scordo?

Submitted by y0zh on Tue, 04/23/2013 - 12:13

Jackie is the project manager of large project. During the Determine Budget phase, she identifies that contingency reserves need to be made for unplanned but potentially required changes that could result from realized risks identified in the risk register. Which of the following is true about reserves?




  1. Add a note hereReserves are not a part of project cost baseline, but may be included in the total budget for the project



  2. Add a note hereReserves are not a part of project cost baseline, and will not be included in the total budget for the project



  3. Add a note hereReserves are a part of project cost baseline, but will not be included in the total budget for the project



  4. Add a note hereReserves are a part of project cost baseline, and will be included in the total budget for the project

     Scord answer is A, but Rita book says that Contingency is a part of Cost baseline. Who is right?

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sspawar

Tue, 04/23/2013 - 12:27

 rita is right

contingency reserves are part of cost baseline -- as per pmbok 4

if in above question's options 

Scordo uses Management Reserves in place only word "reserves"-- then option A is correct.-- as per pmbok 4.

y0zh

Tue, 04/23/2013 - 12:35

thanks. some wording question


was confused reading this posting, looks like some points are not correct during the discussion:


http://risk.vc.pmi.org/Public/Community/Discussions/tabid/972/aft/2250/Default.aspx

Focused2013

Wed, 04/24/2013 - 00:26

Management reserves are not, Contingency reserves are