So, what is a project charter, exactly? The following quick guide will help give you a fuller understanding so that when you\u2019re pitching your next project, you\u2019ll have everything you need to achieve success.<\/p>\n
What Is a Project Charter?<\/h2>\n
A project charter is the statement of scope, objectives and people who are participating in a project. It begins the process of defining the roles and responsibilities of those participants and outlines the objectives and goals of the project. The charter also identifies the main stakeholders and defines the authority of the project manager at the outset of the project plan<\/a>.<\/p>\n In terms of a project charter’s meaning, this formal document is a high-level overview of the project. It keeps stakeholders aligned and offers a clear vision and direction for the project team to follow. For example, why is the project being undertaken, what are its goals and who are its stakeholders? Project charters also help secure the approval and resources for the project.<\/p>\n Get your free<\/p>\n \n\tUse this free Project Charter Template to manage your projects better.<\/p>\n\tGet the template<\/a>\n<\/div> \n\n <\/p>\n There are a lot of documents<\/a> necessary to run a project. Before you start, there are many you have to create, from a project plan to a project budget and more. All of these documents delve into detail on the items you\u2019ve broadly covered in your project statement. So, why do you need another document, isn\u2019t it redundant?<\/p>\n While it\u2019s true you\u2019re going to cover this ground on a granular level, this is your first pass; there\u2019s a reason it\u2019s more general and comes before everything else. The following are three main uses of the document:<\/p>\n Now that we know what a project charter in project management is, let\u2019s explore when to write one. Typically, the project charter is written at the beginning of a project, during the initiation phase<\/a> and before stakeholder alignment is needed.<\/p>\n At this point, the project is formally defined and authorized, and the project charter can help provide information about the project\u2019s purpose. The appointed project manager will usually step in once the project charter is finalized to ensure they can effectively manage the project.<\/p>\n A project manager<\/a> typically writes the project charter, however, it requires collaboration with different stakeholders to be a success. While the project manager will lead the process and ensure clarity on objectives, scope and deliverables, the project sponsor, key stakeholders, subject matter experts and team members should also be involved and provide input. This collaborative approach helps build well-rounded project charters that align with all parties\u2019 expectations.<\/p>\n To further understand what a project charter is, let’s compare it to other project documentation<\/a>, which should bring it into sharper focus. We\u2019ve already explained that a project charter is a high-level document used when initiating a project. It\u2019s only a few pages long and outlines the objectives, scope, vision, team role and responsibilities as well as the stakeholders involved in the project.<\/p>\n The project plan<\/a> is used to show how to execute the project. It\u2019s a practical guide to running the project from start to finish. It comes after the project charter has been approved by the stakeholders and acts as a direction for the project plan. What\u2019s outlined in the project charter is fleshed out and defined in far greater detail in the project plan. In that sense, they\u2019re related and very much part of the larger progression of the project.<\/p>\n When we\u2019re talking about a project plan, it\u2019s a way to identify the value of the project for the stakeholders and organization. But then it gets down to a more practical level. There\u2019s the creation of a project timeline, with tasks, duration and milestones. It structures the project team, their roles and responsibilities, and who will do what when executing the project. Resources are allocated, a work breakdown structure (WBS)<\/a> is used to identify all the deliverables and costs are estimated.<\/p>\n As already defined, a project charter is a high-level description of the project and its deliverables. But a business case<\/a>, as the name suggests, speaks to the value of the project, what the return on investment (ROI) will be or how it positions the organization to exploit opportunities in the future.<\/p>\n Therefore, a business case focuses on the business opportunities or a problem to be fixed by the project. These benefits can be tangible or intangible, such as increasing profits or market saturation. Whatever they are, the benefits are supported by a detailed analysis of the ROI. Any assumptions and constraints are listed.<\/p>\n So while a project charter is a broader document, the business case is only interested in what the project can do to help the organization. It justifies the project and the time, money and effort it’ll take to complete the project. A project charter authorizes the project and the business case is the research to prove the viability of the time, money and effort required to execute the project<\/a>.<\/p>\n Writing a project charter takes time and effort and it can be challenging if you\u2019re new to project planning. But you don\u2019t have to worry, you can use our free project charter template<\/a> to get started. Use it as a project charter example to work from, then keep reading our blog to learn how to make a project charter for your project.<\/p>\n The project management charter serves as a reference document. It should answer these key questions during the initiation phase.<\/p>\n So, those are the broad strokes, and while a project statement doesn\u2019t need to go into great detail, there are many more key elements to it than these general statements. Remember, the sections outlined below should be short because they refer to more detailed project planning documents, such as a scope statement<\/a>, project budget, risk management plan or request for proposal.<\/p>\n This first section in your project charter is where you\u2019ll include your project\u2019s general information, such as its name, description and who are the project sponsor, project manager<\/a>, team members and stakeholders.<\/p>\n Usually, the project sponsor or authorizing party will be a senior manager or executive with the authority to approve the project and oversee resource allocation. They will help provide direction, get the necessary funding, act as a liaison between stakeholders and resolve any conflicts that come up. The project sponsor<\/a> plays an important role as they help ensure the project is meeting organizational objectives and cross-departmental collaboration.<\/p>\n Next, the purpose of the project management charter needs to be established. In other words, clearly articulate why the project is happening and what it plans to accomplish. Parts to include in the project purpose are the problem or opportunity, goals, organizational objectives and benefits. Always use simple, digestible language so all stakeholders are clear on the project\u2019s intent.<\/p>\n It\u2019s important for project managers to differentiate between these two. Project goals<\/a> are the high-level benefits that the project should generate, while project objectives<\/a> are the specific milestones or steps that are needed to complete them. If you don\u2019t have a clear target, your project is going to miss the mark.<\/p>\n An important function of a project charter is to document your team members and their roles and responsibilities. You should also identify the main stakeholders. It\u2019s always crucial to note the stakeholders in any project as they\u2019re the ones who you\u2019ll be reporting to and, in a sense, managing their expectations. The sooner you know who they are, the sooner you can build a productive stakeholder management plan.<\/a><\/p>\n A project charter needs a business case<\/a> because it essentially states the reasons for undertaking the project. It helps project managers explain the business needs that the project will meet and the expected financial benefits and return on investment for project stakeholders. A good way to sell the project is to have a sense of what good the project will bring to sponsors and stakeholders. Figure out what those benefits are and list them here.<\/p>\n What are the in-scope and out-of-scope items? The scope<\/a> is the boundaries of your project, such as its start date and when it concludes. So, what are the in-scope items, such as those parts of the project process as opposed to tasks or actions that lay outside the step-by-step process of the project? Outline your key project deliverables and milestones. Later, during the planning phase, you\u2019ll need to create a scope statement that describes the project scope in more depth.<\/p>\n A project timeline is a simplified version of your project schedule. This project timeline<\/a> should show key deliverables, milestones and project stages so that stakeholders understand the big picture.<\/p>\n The project charter document should include the needed personnel, budget, materials and tools to complete the project. Once the resource types are identified, break them down by phases so the team understands when resources will be used. A clear estimation of resources in the project charter helps build a stable foundation for the planning and execution phases.<\/p>\n While you\u2019ll go into greater detail when you create the project budget<\/a>, here’s where you want to get a ballpark figure on what project costs you expect, based on the resources required to execute project tasks. Define the budget for the project and who will have spending authority. Include the estimated costs for the tasks you\u2019ve defined, but be aware that new project requirements and tasks will require adjustment of this budget.<\/p>\n A cost-benefit analysis<\/a> helps stakeholders better understand the project\u2019s financial implications and return on investment (ROI). As a result, the stakeholders can make more informed decisions. Various components of a cost-benefit analysis are needed such as direct and indirect costs, project benefits that are both tangible and intangible as well as the overall return on investment. A template can help<\/a> with this somewhat complicated step.<\/p>\n It\u2019s important to write down all the assumptions or constraints<\/a> that can have an impact on the development or execution of your project plan. Noting key assumptions is very important for stakeholder management, as setting clear expectations is key to success. You also want to have at least an outline of how you\u2019re going to deal with project constraints. If you don\u2019t cover it now, you\u2019ll have to play catch-up later.<\/p>\n Identify all potential risks that could arise in the project so you\u2019re not taken by surprise. Here, you\u2019ll want to highlight the most probable or impactful risks so that stakeholders are aware of them early. This should be followed by a risk register<\/a> and risk management plan in your project plan, where you detail how you\u2019ll resolve those risks and who on the team is responsible for catching and fixing them.<\/p>\n The project management team and project stakeholders must reach an agreement in terms of success criteria. The most common aspects to determine project success are the triple constraint<\/a> elements, time, cost and scope. But depending on the project, there can be many project requirements such as risk tolerance levels and quality standards.<\/p>\n Now, let\u2019s use the steps above to write two simple project charter examples.<\/p>\n For this project charter example, let\u2019s imagine a construction firm that\u2019s going through the initiation phase of a residential construction project<\/a>, more specifically an apartment complex.<\/p>\n Project Information<\/strong><\/p>\n Roles & Responsibilities<\/strong><\/p>\n Project Vision and Objectives<\/strong><\/p>\n Business Case<\/strong> Project Scope<\/strong><\/p>\n The construction project will be built as per the construction drawings, specifications and other documents such as the construction plan and construction schedule.<\/p>\n Project Timeline<\/strong><\/p>\n The project is expected to start<\/a> by the last quarter of the year and be completed between 12-16 months.<\/p>\n Project Budget<\/strong><\/p>\n The project budget<\/a> is $15 million, based on the number of units and their square footage, as specified in the construction drawings, architectural designs and computer-assisted designs (CAD) models. The project budgeting process was completed thanks to a cross-functional effort by the architecture, engineering and cost estimation team.<\/p>\n Project Assumptions<\/strong><\/p>\n Project Constraints<\/strong><\/p>\n Project Risks<\/strong><\/p>\n The following risks might affect this project:<\/p>\n Project Requirements and Success Criteria<\/strong><\/p>\n The quality, safety standards, success criteria and other requirements for this project are explained in the construction drawings and construction specification<\/a> documents. These include but are not limited to the quality of materials, skills required from the construction crew, environmental compliance standards and building codes.<\/p>\n For another project charter example, we\u2019ll look at something less physical, the creation of a website. While the deliverables<\/a> for the project charter example are tangible, they’ll still follow a similar outline as with the construction project charter or, frankly, any project.<\/p>\n Project Information<\/strong><\/p>\n Roles & Responsibilities<\/strong><\/p>\n Project Vision and Objectives<\/strong><\/p>\n Business Case<\/strong><\/p>\n Currently, Widgets Manufacturing has the capacity to deliver its popular brand at retail locations around the country. To broaden its global brand in a cost-effective manner, the development of a website to further its reach is the next step to grow and increase profitability.<\/p>\n Project Scope<\/strong><\/p>\n The website is constructed to match the sensibilities of Widget\u2019s target audience. Deliverables include design rough and finish, graphic elements, content, backend and frontend development and testing.<\/p>\n Project Timeline<\/strong><\/p>\n The project is to be finished by the end of the year to exploit the seasonal spike in buying. Estimates for the timeline are six months.<\/p>\n Project Budget<\/strong><\/p>\n The project is estimated<\/a> to cost $1 million. A breakdown of equipment and labor is attached.<\/p>\n Project Assumptions<\/strong><\/p>\n Constraints<\/strong><\/p>\n Project Risks<\/strong><\/p>\n The following risks might affect this project:<\/p>\n Project Requirements and Success Criteria<\/strong><\/p>\n The website must be completed on time and within budget. It should be consistent with the overall brand image of Widget Manufacturing and speak to our customers’ needs. The collection of leads and the delivery of goods, including secure payment, should all work as designed.<\/p>\n There’s a process for writing a project charter, which starts with knowing what the vision of the project is. That vision statement<\/a> can’t be vague, but must capture the purpose of your project, defining the end goal for the project team.<\/p>\n Once you have the vision clear, then you can break it down into more practical bits.<\/p>\n When you’re building a structure for your charter, there are four subsets you need to identify. This is done by listing the following:<\/p>\n You have a vision and have organized\u00a0the various parts of your project. Now you have to develop a plan to implement them. There are four parts to this:<\/p>\n The charter lays the groundwork for the project. It provides a vision and determines where all the parts will be placed. It\u2019s a great framework, but it\u2019s not a plan. The charter leads to project planning, and ProjectManager<\/a> is award-winning project management software you need to manage your project from start to finish.<\/p>\n Turning a charter into a plan requires a tool that’s flexible enough to respond and adjust to the many tasks involved. The online Gantt chart<\/a> project view takes tasks and populates a project timeline, where dependencies can be linked-to avoid bottlenecks later. Set milestones,<\/a> quickly edit dates and even assign work to team members.<\/p>\n When assigning teams, it\u2019s critical that they have clear directions. Project managers have too much to do to spend time micromanaging their teams. ProjectManager makes assigning easy, but also with its unlimited file storage, you can attach as many documents and images as necessary for instruction. Comments can be made at the task level, so there’s always a channel open between team members to communicate and collaborate.<\/p>\n There’s a lot to learn in project management before you can plan, schedule, execute and deliver projects successfully. For this reason, we’ve created dozens of blogs, templates, ebooks and videos on the most important topics in project management. Here are some of them.<\/p>\n Once you’ve written your project charter and have approval from your stakeholders, you’re going to need the right tools to manage the scope, tasks and resources of your project to ensure you deliver it under budget and on schedule. ProjectManager<\/a> is online project management software that reports instantly when statuses are updated, so you know where your project is and how to keep it moving toward successful completion. Try our award-winning software now with this free 30-day trial.\u00a0<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"![\"\"](\"\/wp-content\/uploads\/2021\/09\/Project-Charter-Template.png\")
\t<\/div>Project Charter Template<\/h3>\n
What Is the Purpose of a Project Charter?<\/h2>\n
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When to Write a Project Charter in Project Management<\/h2>\n
Who Should Write a Project Charter?<\/h2>\n
Project Charter vs. Project Plan<\/h2>\n
Project Charter vs. Business Case<\/h2>\n
Project Charter Template<\/h2>\n
![\"free](\"\/wp-content\/uploads\/2021\/09\/Project-Charter-Screenshot-600x467.jpg\")
<\/a>How to Write a Project Charter: Key Elements of a Project Charter<\/h2>\n
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1. State the Project Information<\/h3>\n
2. Identify the Project Sponsor and Authorizing Party<\/h3>\n
3. Establish the Project Purpose<\/h3>\n
4. Identify Project Goals and Project Objectives<\/h3>\n
5. Define Project Team Roles & Responsibilities<\/h3>\n
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6. Present a Business Case<\/h3>\n
7. Outline the Project Scope<\/h3>\n
8. Create a Project Timeline<\/h3>\n
![\"Project](\"\/wp-content\/uploads\/2023\/03\/Project-Timeline-Screenshot-600x250.jpg\")
<\/a>9. Estimate What Resources Will Be Needed<\/h3>\n
10. Build the Project Budget<\/h3>\n
![\"Project](\"\/wp-content\/uploads\/2023\/08\/Project-Budget-Screenshot-600x167.jpg\")
<\/a>11. Conduct a Cost-Benefit Analysis<\/h3>\n
12. Note Key Assumptions & Constraints<\/h3>\n
13. Log Key Project Risks<\/h3>\n
14. Define Project Requirements and Success Criteria<\/h3>\n
![\"PM](\"\/wp-content\/uploads\/2025\/02\/PM-101-eBook-banner-ad.jpg\")
<\/a>\nProject Charter Examples<\/h2>\n
Construction Project Charter Example<\/h3>\n
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\nThe district is ripe for housing. Recent mixed-use construction has produced popular retail and restaurants. The area is lacking in luxury residential housing for the moneyed class which has increasingly made this part of the city a destination. Attached is supporting research, demographics, etc.<\/p>\n\n
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Website Project Charter Example<\/h3>\n
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![\"Project](\"\/wp-content\/uploads\/2023\/05\/Project-charter-image-update-600x600.png\")
\nTips on Writing a Project Management Charter<\/h2>\n
Vision<\/h3>\n
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Organize<\/h3>\n
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Implementation<\/h3>\n
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Take the Next Step in Planning with ProjectManager<\/h2>\n
Gantt Charts for Planning<\/h3>\n
![\"Gantt](\"\/wp-content\/uploads\/2021\/11\/Gantt-Manufacturing-Light-2554x1372-1-2048x1100-compressed.png\")
<\/a>\nCollaborate on Tasks<\/h3>\n
![\"task](\"\/wp-content\/uploads\/2024\/02\/Task-Card-List-Light-Mode-Bid-Proposal.png\")
<\/a>\nRelated Content<\/h2>\n
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