What term describes additional funds allocated to cover unforeseen circumstances specific to a project?

The term that accurately describes additional funds allocated to cover unforeseen circumstances specific to a project is contingency reserves. Contingency reserves are specifically set aside to address risks that have been identified but are uncertain in terms of their impact or likelihood. This ensures that a project has sufficient resources to respond to unexpected events or challenges as they arise.

Management reserves, on the other hand, represent funds set aside for unforeseen work that is not specifically identified in the risk management plan. While both management reserves and contingency reserves are important for managing project risks, contingency reserves are the ones directly allocated for specific unforeseen circumstances related to the project. Therefore, they serve a distinct purpose in financial planning and risk management within projects.