Management Reserve (MR)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Management Reserve (MR) is budget held in reserve for unknown but in-scope effort — work that will be needed but cannot be identified in advance.
MR is released through a disciplined, controlled process to cover additional work that's still within the contract's authorized scope, or to accommodate rate changes on future work. It sits outside the Performance Measurement Baseline until it's formally distributed to a Control Account, and it may not be used to absorb or hide existing cost variances.
Why it matters
MR gives a program manager a controlled way to handle legitimate scope-related surprises without triggering a full formal reprogramming. But that only works if it's protected from being used to paper over performance problems that should show up as variances instead.
Also known as
N/A
Used in
Total Allocated Budget; Master Budget Log
See also
FAQ
Can Management Reserve be used to cover an existing cost overrun?
No — it may not be used to offset or minimize existing cost variances; it's reserved for additional authorized work or rate changes.
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.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
