Project charter

From CEOpedia | Management online

The project charter is the main document of the project proposal. It contains all relevant information about the project. The project manager, sponsor, and the client should accept the card project before signing contract. It is the basis for subsequent claims. The project charter should contain at least the following information:

  • essence and the overall objective of the project (the clarification),
  • description of substantive partial tasks,
  • implementation schedule,
  • cost estimates.

Project charter is not only the presentation of the project and the expected results, but at the same time it is a valuable tool for project management. The main function of the project charter is the presentation of the program of tasks to be realized. It not only clearly define the attributes of the project and the end result, but also identifies the supervising group of persons. Usually, this group include: project sponsor, project manager and team leaders. Project charter defines the role of each of these persons, and provides contact information.

Contents of project charter

In the process of creating the project charter, managers can insert almost any desired information about the project. Sample table of contents of project charter:

  • Abstract of the project.
  • Keywords.
  • Overall objective of the project:
    • characteristics of the overall project objective,
    • description of the subject matter,
    • relevance of the project (in particular economic efficiency),
    • comparison of the utility of domestic and foreign solutions.
  • Partial tasks (subtasks).
  • Classification of subtasks.
  • Diagnostic and research tasks:
  • Directions for further research.
  • Results of the project:
    • cognitive results,
    • utility results,
    • economic results.
  • Cycle the design process.
  • Resources for the execution of the project (financial expenditure).
  • Description of evaluation studies.
  • Description of the application work.
  • Project implementation schedule.
  • Cost estimate of the project:
    • direct costs,
    • indirect costs.

Applications

In most projects, the charter is the key success factor, enabling much faster achievement of the goal. With it, manager can accomplish the following tasks:

  • authorization of project,
  • full definition of business requirements,
  • definition of project sponsor,
  • identification of the project manager and making him responsible for project implementation,
  • delegation of authority from sponsor to the project manager.

It should be also noted that a project charter in various organizations may be called in a different way. Its level of detail can vary depending on the company or project. However, most charters has two main tasks - authorizing and defining work needed to be done.

Project charters (with the exception of the budget) are often shared throughout the company, which increases sense of responsibility between anyone involved in the project.

See also:

Examples of Project charter

  • Project purpose and objectives: A statement of the project’s purpose and the associated outcomes.
  • Project scope: A description of the project’s deliverables, activities, and boundaries.
  • Project schedule: A timeline for completing the project.
  • Budget: A breakdown of project costs and a budget for the project.
  • Resources: A list of team members, vendors, and other resources needed.
  • Roles and responsibilities: A description of the roles and responsibilities of each team member.
  • Risk identification and management: A plan for identifying and managing risks.
  • Change control: A plan for managing changes and requesting changes.
  • Quality assurance: A plan for ensuring the quality of the project’s deliverables.
  • Communication plan: A plan for keeping stakeholders informed of project progress.
  • Acceptance criteria: A set of criteria that must be met in order for the project to be accepted.

Examples of Real-Life Project Charters

  • The California Department of Transportation (Caltrans) Project Charter: The Caltrans project charter outlines the project’s purpose, deliverables, timeline, budget, resources, roles, and responsibilities.
  • The Arizona Department of Transportation (ADOT) Project Charter: The ADOT project charter outlines the project’s purpose, deliverables, timeline, budget, resources, roles, and responsibilities.
  • The New York City Department of Transportation (NYCDOT) Project Charter: The NYCDOT project charter outlines the project’s purpose, deliverables, timeline, budget, resources, roles, and responsibilities.
  • The Chicago Department of Transportation (CDOT) Project Charter: The CDOT project charter outlines the project’s purpose, deliverables, timeline, budget, resources, roles, and responsibilities.

Advantages of Project charter

A project charter is an important document that outlines the scope and objectives of a project. It is used to gain commitment and agreement from stakeholders, and is usually approved by the project sponsor or client. The advantages of a project charter include:

  • It provides a clear understanding of the project scope, objectives and stakeholders.
  • It outlines the roles and responsibilities of each team member and the project manager.
  • It helps to define project goals and objectives, and provides a framework for planning and execution.
  • It serves as a reference for decision-making and conflict resolution.
  • It helps to maintain focus and accountability by setting clear expectations and timelines.
  • It serves as a contract between the project team and the client, and provides a legal basis for the project.
  • It helps to ensure proper communication between stakeholders, and provides a platform for project updates.

Limitations of Project charter

A project charter is a document that outlines the scope, objectives, and participants involved in a project. It is an important way of communicating to all stakeholders what is expected of them and what they can expect in return. However, there are limitations to what a project charter can do, including:

  • It cannot be used to replace a binding contract between a client and a contractor.
  • It cannot be used to obligate any parties to the project.
  • It cannot provide a guarantee that the project will be successful.
  • It cannot be used to settle disputes between stakeholders.
  • It cannot be used to define budgets, timelines, or other specific metrics.
  • It cannot be used to provide legal protection for any party involved in the project.

Other approaches related to Project charter

A project charter is a document that outlines the key elements for a project. It captures the preliminary understanding of the project, its purpose, and the expected outcomes. Other approaches related to project charter should include:

  • Project Objectives: This should include a description of the project, who it benefits and how it will be achieved.
  • Scope: This should include an outline of the scope of the project, any limitations to it, and any assumptions.
  • Stakeholders: This should include a list of all stakeholders involved in the project and their roles and responsibilities.
  • Resources: This should include a list of all resources required to complete the project, as well as any costs associated with them.
  • Schedule: This should include a timeline of activities, deadlines, and milestones.
  • Communication: This should include a plan for how the project will be communicated to stakeholders throughout its duration.
  • Risk Management: This should include an outline of the risks associated with the project and the strategies to mitigate them.

In summary, the project charter should include a clear and concise description of the project and its objectives, scope, stakeholders, resources, schedule, communication, and risk management. This document is an essential part of any project as it provides a starting point from which all other planning and execution of the project can be based.


Project charter — recommended articles
Stages of project — Preparation of project — Scope of work — Project — PMBOK framework — Project scope — Project steering committee — Quality policy — Project initiation

References

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