I have written this article to explain every possible detail of a modern Project Charter. I have given a few definitions and an example of a Project Charter. After reading this article, you will understand the purpose of the project charter and its importance in the project management. You will also find a sample project charter template that can be downloaded in pdf format. The template will help you to visually understand the elements & components of a project charter.
Different project management standards and methodologies define project charter differently. I have taken PMBOK Guide’s standard for project management for creating the project charter template. You can either use it for your project or refer to it as an example template.
Project Charter Definition
A Project Charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides a project manager with the authority to apply organizational resources to project activities.
You can also refer to Max Wideman Glossary to read some other definitions of project charter.
Some Other Definitions From the PMBOK Guide
Customer is the person(s) or organization(s) that will pay for the project’s product, service, or result. Customers can be internal or external to the performing organization.
A person or group who provides resources and support for the project, program, or portfolio and is accountable for enabling success.
The person assigned by the performing organization to lead the team that is responsible for achieving the project objectives.
An enterprise whose personnel are most directly involved in doing the work of the project or program.
Download Project Charter Template
You can Download Sample Charter by clicking on the link.
Purpose Of A Project Charter
The most important purpose of the project charter is to establish the existence of a project and to assign the project manager to deliver on project objectives. It is a very important & critical document and serves few other purposes as well.
- It recognizes the existence of the project.
- It authorizes the project manager to use the organizational resources to meet the documented objectives of the project under the given constraints.
- It defines the authority level of the project manager.
- It ensures that all major project stakeholders formally agree on the project description and are fully committed towards the project goal.
- It provides a bird’s eye view of the project by documenting project’s goal, objective, description, and purpose.
- It contains high level information that is available at the start of the project e.g. scope, schedule, budget, resource estimates, risks, and deliverables.
- It lists all the major project stakeholders and their role in the project.
- It defines high level role and responsibilities of the major project stakeholders.
How Is The Project Charter Prepared?
The Project Charter should ideally be prepared by the Project Sponsor but often this responsibility is delegated to Project Manager and the team. Sometimes the Charter is collectively prepared by a group of people that includes both the Sponsor and Project Manager.
Once PC is prepared, it is signed and issued by the Sponsor.
Ideally the PC should be prepared before the Project Kickoff meeting and presented to all major stakeholders during the meeting. This brings everyone on the same page and ensures commitment towards project goal.
The author of the Project Charter generally uses information contained in the following documents to prepare the Charter:
- Client agreements including but not limited to signed contract, Memorandum Of Understanding (MOU), Ltter Of Intent (LOI), and pre-bid documents.
- Business Case
- Statement of Work
Major Elements And Components of A Project Charter
- High level Scope & requirements
- High level duration & effort estimates
- High level schedule and major milestones
- High level budget
- High level assumptions
- High level constraints
- High level dependencies
- High level risks
- List Of major stakeholders and their respective high level role & responsibilities
- Project Organization Chart
- Name of the Project Manager
- Name of the Project Sponsor
Project Charter Example For Attaining PMP Certification
I have used the above components to create a sample PC for a person who wants to attain PMP certification. It does not contain all the elements but it gives a fair representation of a real PC. The sample PC may look like:
To complete the PMP Certification within a period of 2 months.
PMP Certification is an industry recognized credential for project managers. PMP demonstrates the experience, skill and competency required to lead and direct projects.
High level scope
- Complete 35 contact hour project management education/training.
- Study the PMBOK Guide.
- Study a good exam prep book.
- Do some practice tests.
- Fill online application form.
- Take the certification exam.
- Pass the exam.
High level budget
USD 3000 – Reference taken from How Much Does It Cost To Fo PMP?
High level schedule
2 months – Reference taken from How Much Time Is Required For PMP Prep?
This is just a small example. A real world PC would include much more details.
Over To You
Does your organization use Project charter? Does it give enough importance to the sanctity of PC? Do you think PC is an important document? Please leave a comment.