2 Initiating Forms

1.1 Project charter

The project charter is a document that formally authorizes a project or phase. The project charter defines
the reason for the project and assigns a project manager and his or her authority level for the project. The
contents of the charter describe the project in high-level terms, such as:

• Project purpose
• High-level project description
• Project boundaries
• Key deliverables
• High-level requirements
• Overall project risk
• Project objectives and related success criteria
• Summary milestone schedule
• Preapproved financial resources
• Key stakeholder list
• Project approval requirements
• Project exit criteria
• Assigned project manager, responsibility, and authority level
• Name and authority of the sponsor or other person(s) authorizing the project charter

The project charter can receive information from:

• Agreements (contracts)
• Statements of work
• Business case
• Benefits management plan

It provides information to:

• Stakeholder register
• Project management plan
• Scope management plan
• Requirements management plan
• Requirements documentation
• Requirements traceability matrix
• Project scope statement
• Schedule management plan
• Cost management plan
• Quality management plan
• Resource management plan
• Communications management plan
• Risk management plan
• Procurement management plan
• Stakeholder engagement plan

The project charter is an output from process 4.1 Develop Project Charter in the PMBOK® Guide –
Sixth Edition. This document is developed once and is not usually changed unless there is a significant
change in the environment, scope, schedule, resources, budget, or stakeholders.
 Initiating Forms 3

tailoring tips
Consider the following tips to help you tailor the project charter to meet your needs:

• Combine the project charter with the project scope statement, especially if your project is small
• If you are doing the project under contract you can use the statement of work as the project charter
in some cases

alignment
The project charter should be aligned and consistent with the following documents:

• Business case
• Project scope statement
• Milestone schedule
• Budget
• Stakeholder register
• Risk register

Description
You can use the element descriptions in Table 1.1 to assist you in developing a project charter.

table 1.1 elements of a Project charter

Document element Description

Project purpose The reason the project is being undertaken. May refer to a business
case, the organization’s strategic plan, external factors, a contract
agreement, or any other reason for performing the project.
High-level project description A summary-level description of the project.
Project boundaries Limits to the project scope. May include scope exclusions, or other
limitations.
Key deliverables The high-level project and product deliverables. These will be further
elaborated in the project scope statement.
High-level requirements The high-level conditions or capabilities that must be met to satisfy the
purpose of the project. Describe the product features and functions
that must be present to meet stakeholders’ needs and expectations.
These will be further elaborated in the requirements documentation.
Overall project risk An assessment of the overall riskiness of the project. Overall risk can
include the underlying political, social, economic, and technological
volatility, uncertainty, complexity, and ambiguity. It pertains to the
stakeholder exposure to variations in the project outcome.
Project objectives and related success Project objectives are usually established for at least scope, schedule,
criteria and cost. The success criteria identify the metrics or measurements
that will be used to measure success.
There may be additional objectives as well. Some organizations
include quality, safety, and stakeholder satisfaction objectives.

(continued)
4 Initiating Forms

table 1.1 elements of a Project charter (continued)

Document element Description

Summary milestone schedule Significant events in the project. Examples include the completion of
key deliverables, the beginning or completion of a project phase, or
product acceptance.
Preapproved financial resources The amount of funding available for the project. May include sources
of funding and annual funding limits.
Key stakeholder list An initial, high-level list of people or groups that have influenced or can
influence project success, as well as those who are influenced by its
success. This can be further elaborated in the stakeholder register.
Project exit criteria The performance, metrics, conditions, or other measurements that
must be met to conclude the project.
Assigned project manager, responsibility, The authority of the project manager with regard to staffing, bud-
and authority level get management and variance, technical decisions, and conflict
resolution.
Examples of staffing authority include the power to hire, fire, discipline,
accept, or not accept project staff.
Budget management refers to the authority of the project manager
to commit, manage, and control project funds. Variance refers to the
variance level that requires escalation.
Technical decisions describe the authority of the project manager to
make technical decisions about deliverables or the project approach.
Conflict resolution defines the degree to which the project manager
can resolve conflict within the team, within the organization, and with
external stakeholders.
Name and authority of the sponsor or other The name, position, and authority of the person who oversees the
person(s) authorizing the project charter project manager for the purposes of the project. Common types of
authority include the ability to approve changes, determine acceptable
variance limits, resolve inter-project conflicts, and champion the proj-
ect at a senior management level.
 PROJECT CHARTER
Project title:
Project sponsor: Date Prepared:
Project manager: Project customer:

Project Purpose:

high-level Project Description:

Project boundaries:

key Deliverables:

high-level requirements:

overall Project risk

Page 1 of 4
 PROJECT CHARTER
Project objectives success criteria

scope:

time:

cost:

other:

summary milestones Due Date

Page 2 of 4
 PROJECT CHARTER
Preapproved Financial resources:

stakeholder(s) role

Project exit criteria:

Project manager authority level:

staffing Decisions:

budget management and Variance:

Page 3 of 4
 PROJECT CHARTER
technical Decisions:

conflict resolution:

sponsor authority:

approvals: 

Project manager signature sponsor or originator signature

Project manager name sponsor or originator name

Date Date

Page 4 of 4