What is Project Charter?

Project Charter

The project charter is the document that formally authorizes a project. The project charter provides the project manager with the authority to apply organizational resources to project activities. According to PMBOK Guide, the project charter should address the following information:

• Requirements that satisfy customer, sponsor, and other stakeholder needs, wants and expectations
• Business needs, high-level project description, or product requirements that the project is undertaken to address
• Project purpose or justification
• Assigned Project Manager and authority level
• Summary milestone schedule
• Stakeholder influences
• Functional organizations and their participation
• Organizational, environmental and external assumptions
• Organizational, environmental and external constraints
• Business case justifying the project, including return on investment
• Summary budget

If required, it also authorizes the next project phase, and updates the charter. The project manager should always be assigned prior to the start of planning, and preferably while the project charter is being developed.