Project Charter
A project charter is a document issued by the project sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
Explanation
The project charter is the foundational document that gives a project its official standing within an organization. It is created during the Initiating process group and links the project to the strategic objectives of the organization. The charter includes high-level information such as the project purpose, measurable objectives, high-level requirements, summary milestones, overall budget, key stakeholders, and the assigned project manager along with their authority level.
The project sponsor, or another entity external to the project, typically issues the charter. The project manager may assist in drafting it, but the authority to approve and fund the project comes from the sponsor or an executive body. A signed charter represents organizational commitment and gives the project manager the green light to begin planning.
Because the charter is a high-level document, it does not contain detailed plans. Instead, it establishes the vision and boundaries of the project. It should be revisited when there are significant changes to scope or objectives. The charter remains relevant throughout the project lifecycle and is a key input to the Develop Project Management Plan process.
Key Points
- •Formally authorizes the project and assigns the project manager
- •Issued by the project sponsor or an external authority, not the project manager
- •Links the project to organizational strategy and business objectives
- •Contains high-level scope, milestones, budget, risks, and stakeholder information
Exam Tip
Remember that the project charter is the ONLY document that formally authorizes the project manager. Without a signed charter, the project does not officially exist.
Frequently Asked Questions
Related Topics
Develop Project Charter
Develop Project Charter is the process of creating the document that formally authorizes a project or phase and documents the initial requirements that satisfy stakeholder needs and expectations.
Business Case
A business case is a documented economic feasibility study that establishes the validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities.
Project Management Plan
The project management plan is the document that describes how the project will be executed, monitored and controlled, and closed.
Stakeholder Register
The stakeholder register is a project document that records identification information, assessment details, and the classification of each project stakeholder.
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