Management Reserve (MR)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Management Reserve (MR) is budget the contractor holds back from the Performance Measurement Baseline for management control: to cover risks and unplanned in-scope effort — work that will be needed but can’t be identified in advance.
MR is budget set aside for work that's within the project's scope but can't be identified or planned in advance. The amount should reflect the project's identified risks. Because MR isn't yet tied to specific work, it's held outside the Performance Measurement Baseline (PMB). When a need arises, it's moved into the PMB through a controlled process. MR is not a contingency pool for covering cost overruns.
What this means for you
MR gives the project a controlled way to add budget for in-scope work that couldn't be planned in advance, including extra work needed to mitigate or avoid risks. Scope is rarely fully defined up front, and planning is never perfect. MR acknowledges that reality.
Also known as
N/A
Used in
Total Allocated Budget; Budget Log
See also
Related job aid
How Contract Price, Cost and Budget Fit Together →FAQ
Can Management Reserve be used to cover an existing cost overrun?
No. MR is used only to add budget for unanticipated but in-scope work. The fact that part of the project is running over budget isn't a reason to allocate MR.
Is Management Reserve part of the Performance Measurement Baseline?
No. It's held outside the PMB until it's formally distributed to a Control Account or Summary Level Planning Package.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
