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What is the Purpose and role of Project Charter in Project Management

What is the Purpose and role of Project Charter in Project Management

Sep, 19th 18

Project charter is a formal document that entails information like roles and responsibilities involved in carrying out a project, agenda of the project and details essential for project manager. All of this serves as a reference for the individuals involved in the process throughout the lifecycle of the project.



What is the purpose of a project charter?


a) To formally initiate the project


b) To formally authorize a project (Answer)


c) To establish a partnership between performing organization and the requesting


It authorizes a project; assigns work that needs to be done and appoints a project manager for the team. Accordingly, tasks are carried out and the cycle proceeds. The main aim of a project charter is to set clear goals and objectives for the project. To dive in, let us understand what a project charter consists of,


Front page: The first and foremost part of the project charter displays the name of the project, project manager and that of the sponsors. Also, important dates like the day project charter was documented or agreement was made are also included.




The purpose of the project with objectives is stated clearly in the project charter. This helps clarify what is expected of the team throughout the process. Also, it helps the team stay focused on the common goal and work with intention and planning.




A comprehensive description of the project and its goals goes a long way in helping the team understand and work on the process. In the project charter, this holds a prominent place as describing the project properly leads to better understanding and working of a team.




Although the budget at this stage cannot be predicted or fixed, in a project charter, it is included as at least a rough estimate. Having an idea of the budget gives a sense of direction to the individuals involved in the project and also helps project managers make well-informed decisions.




If there are any milestones to be achieved or important deadlines that are mentioned in the agreement or contract with the client, those shall be included in the project charter. This is to avoid delay of work or submission and maintain good relations with the parties. Mentioning the due dates of the project or even a little note describing the agenda for the end of each phase is important.




Predicting potential risks and including them in the project charter is a common and very important practice. By listing out the possible downfalls and recognizing the areas of failures can help the team avoid things. Plus, with these possible risks, one can even have a backup plan ready that can come handy in case of crisis.


Tolerance levels:


Another important part of project charter consists of information related to the tolerance levels. Mentioning tolerance levels of budget and other areas is a great way to ensure things are under control. In case of emergencies, one will know if they can utilize the amount, add in extra or need to reach out to the sponsors for prior permission.


Signing off:


The final part of the project charter is the approval of the project charter. This consists of a statement displaying approval of the document and agreeing to it being put into action. It shows the signature of the project manager and the project sponsor.


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