Project Charter

  • 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

Key benefits

  • 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