Project charter is a document that formally authorizes the existence of a project and appoints a project manager to the project and provides authority to the project manager to use the organizational resources for the project.
It acts as a formal record of the project.
Shows the organizational commitment to the project.
Project charter is created by the sponsor.
The sponsor can be an individual, group, group of companies who has the authority to sanction funds to the project.
CONTENTS OF A PROJECT CHARTER
Purpose of the project
Success criteria of the project
High level requirements
High level scope of the project
Key deliverables of the project
Key assumptions and constraints
Summary milestone schedule
Pre-approved financial resources
Key stakeholder list
Project exit criteria
Assigned project manager
Project manager’s roles and responsibilities
Key stakeholder’s roles and responsibilities
Name an authority of the sponsor and other persons authorizing the project
The project charter creates common understanding about the project to key stakeholders
The project charter is approved by the sponsor or the key management representative with proper authority. This will ensure that all the right projects are started.
All changes to the charter must be re-approved by the sponsor. This will help to control changes to Time, Cost, Scope and Forecasted benefits
The designated project manager may help the sponsor to draft the charter, and at the same time the approval of the charter is always done by the sponsor