A Project Charter is a short, powerful document that authorizes a project’s existence and gives the project manager the authority to use resources. It’s the official go-ahead that sets the tone, direction, and scope of a project.
Whether you’re managing a small internal task or a large enterprise initiative, a well-written project charter is essential for clarity, alignment, and approval.
What is a Project Charter?
A Project Charter is a formal document that:
- Initiates the project
- Defines the project’s purpose, objectives, and scope
- Assigns a project manager and gives them authority
- Aligns all stakeholders on key details upfront
Think of it as the “contract” between the project sponsor and the project team. It's usually created in the initiation phase of the project life cycle.
Why is a Project Charter Important?
Here’s why every project - big or small, needs a charter:
- Clarity: Everyone knows what the project is, why it matters, and where it’s headed
- Authority: Officially names the project manager and gives them decision-making power
- Alignment: Gets all stakeholders on the same page from day one
- Boundary Setting: Prevents scope creep by clearly defining what’s included and what’s not
- Approval: Provides a basis for moving forward, securing budget and resources
Key Components of a Project Charter
A good project charter includes the following sections:
1. Project Title and Description
A clear name and a brief overview of the project’s purpose.
Example:
Project Title: Website Redesign for BrainyJuice
Description: Redesign the BrainyJuice learning platform to improve user experience, increase conversions, and support mobile responsiveness.
2. Project Purpose or Justification
Why this project exists. What business need or opportunity does it address?
Example:
The current website has a high bounce rate and poor mobile usability. This redesign will help retain users and drive more subscriptions.
3. Project Objectives
Specific, measurable goals the project should achieve.
Example:
- Increase user engagement by 30%
- Reduce page load time by 40%
- Launch within 3 months under a $25,000 budget
4. Scope (In and Out)
What is included in the project and what is not.
Included: UI/UX overhaul, mobile optimization, new homepage and course listing pages
Not Included: Backend architecture changes, content writing
5. Deliverables
The final outputs of the project.
Example:
- New website design files
- Live updated website
- User testing reports
6. Project Timeline / Milestones
High-level timeline with key dates.
Example:
- Design Complete: March 10
- Development Complete: April 15
- Testing & Launch: April 30
7. Budget Estimate
Initial cost estimate or allocated budget.
Example:
-
Design: $7,000
-
Development: $12,000
-
Testing & QA: $3,000
-
Buffer: $3,000
Total: $25,000
8. Project Manager & Authority
Name of the person responsible and their level of authority.
Example:
Project Manager: Aisha Khan
Authority: Approve task changes, assign team members, manage timeline and budget within limits.
9. Key Stakeholders
List of people or groups involved or affected.
Example:
- CEO (Sponsor)
- Design Lead
- Marketing Team
- Engineering Manager
10. Risks / Assumptions / Constraints
Anticipated risks, assumptions being made, and limitations.
Example:
Risks: Delays due to vendor availability
Assumptions: Content will be provided by marketing by March 1
Constraints: Budget capped at $25,000; launch deadline is April 30
How to Write a Project Charter (Step-by-Step)
-
Gather Requirements
Talk to stakeholders, sponsors, and team leads. Understand the goals, expectations, and limitations.
-
Fill in the Basic Info
Write the project title, summary, and business case.
-
Define Objectives and Scope
Be clear and specific. Use measurable targets where possible.
-
List Deliverables and Milestones
Highlight the key outputs and when they’re expected.
-
Assign Roles and Responsibilities
Identify who’s managing the project and who’s involved.
-
Review Risks and Constraints
Identify what might go wrong, and what assumptions you're making.
-
Get Approval
Have sponsors and key stakeholders sign off before the project moves forward.
