Project Charter: The Document That Launches the Project and Grants Authority
Without a charter, the project manager has no formal authority.
- Need — The problem or opportunity
- Business case — Justification linking cost to benefits
- Charter — Formally launches the project
- Authority — Manager authority over resources
A project charter is a document that formally authorizes the project and grants its manager authority. The sponsor issues it, defining the high-level objective, justification, key stakeholders, and initial success criteria. It is based on the business case and the need the project meets. It is a reference returned to when scope or authority is disputed. It is not confused with the team charter: the former launches the project, the latter organizes the team work.
Confusing the project charter with the team charter. The former launches the project and grants authority; the latter organizes team work.
The charter launches the project and grants the manager authority.
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A project charter is the formal launch document: on its issuance the project formally exists, its manager is named, and authority to use organizational resources is granted. The sponsor or initiating body issues it based on a business case that justifies the project by linking its cost to expected benefits. It typically includes the high-level purpose, objectives and initial success criteria, assumptions and constraints, key stakeholders, and the manager authority. It remains a supreme reference that settles disputes when parties disagree over scope or authority. Distinguishing it from the team charter matters on the exam: this launches the project, that organizes the team values and rules.
Frequently asked questions
What is a project charter?
A document that formally authorizes the project, grants the manager authority, and defines the high-level objective.
Who issues the project charter?
The sponsor or initiating body, not the project manager.
What is the difference between the project charter and the team charter?
The project charter launches the project and grants authority; the team charter organizes team values and rules.
What is a business case?
Justifying the project by linking its cost to expected benefits, the basis for issuing the charter.
Why does the charter matter throughout the project?
It is a supreme reference that settles disputes over scope or the manager authority.