Contingency Reserve: A reserve cost added to the activities apart from the estimated cost. If in case, the cost for execution of the activity exceeds the allocated cost. The PM will have the authority to add this reserve cost to the activities.
Management Reserve: This is the cost added to the overall project as the contract price, if in case the project suffers a loss.. In practical world, its known as Mark up cost.. some percentage of contract price will be allocated to this reserve.. This authority will be with the top management of the company..