A rock slide closes down a major highway on the delivery route for a key piece of equipment for your project. This leads to unplanned costs. The area is known for rock slides but another route would take significantly longer. Where does the extra money needed to cover the unplanned costs come from

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30-11-2021
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A rock slide closes down a major highway on the delivery route for a key piece of equipment for your project. This leads to unplanned costs. The area is known for rock slides but another route would take significantly longer. Where does the extra money needed to cover the unplanned costs come from

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topeadeniran2 topeadeniran2 · Answer 1 · 2021-12-02T10:45:52+01:00

Since the project involves more money than what was planned, the extra money that is needed will come from the management reserve.

Management reserve simply means the amount of contract budget that is set aside by the project manager at the start of a project.

It should be noted that management reserves are available for project managers for unidentified risks. Therefore, based on the information given, the extra money needed to cover the unplanned costs will come from the management reserve.

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