Project Charter: What It Contains and What It Authorises
A project charter is the short document that authorises a project and names its boundaries: objective, scope in and out, deliverables, key dates, budget envelope, roles, assumptions and constraints. It is signed by the sponsor. Its function is to make authority and scope explicit before work starts, so later disagreements have a reference point.
What it contains
A charter is deliberately short — one to three pages in most organisations. Length is not the point; the point is that each of these questions has a written answer that somebody signed.
| Section | What it settles |
|---|---|
| Objective | What the project exists to achieve, in business terms rather than technical ones |
| Scope in | What is included. Specific enough to be checkable |
| Scope out | What is explicitly excluded. The section that earns its keep in month four |
| Deliverables | The named outputs and who accepts each one |
| Milestones | The dates that are committed, not the full plan |
| Budget envelope | The approved funding and what it covers |
| Roles | Sponsor, project manager, key decision holders, and the authority each has |
| Assumptions | What is being taken as true and by whom. These become risks when they fail |
| Constraints | Fixed dates, fixed budget, mandated technology, regulatory obligations |
| Success criteria | How the project will be judged at closure |
| Approval | Sponsor name, date, signature |
How it is used
The charter has two lives. Before kickoff it is a negotiation instrument: drafting it forces the sponsor and the project manager to agree what is excluded, which is usually where the disagreement actually is. After kickoff it becomes a reference. When a request arrives that sits outside scope, the charter is what the change request is assessed against, and without it every request becomes a matter of recollection.
It sits between two other documents. Upstream, the business case argues that the project is worth doing and holds the numbers. Downstream, the plan sets out how. The charter names what and who. The project charter and kickoff pack keeps the charter alongside the RACI, stakeholder and comms plan, and a pre-kickoff checklist, because in practice those four get built in the same fortnight. Where the funding argument still has to be made, the business case template covers the cost and benefit side, and the PMO templates guide sets out which of these a new PMO needs first.
Where it goes wrong
- Scope out left blank. The single most common omission, and the one that costs most. Everything not written as excluded is later argued to be included.
- Objectives written as activities. "Implement the new platform" is not an objective; it is the work. The objective is what the platform is for.
- Assumptions not logged. An assumption that never enters the RAID log cannot be reviewed, and it fails silently.
- No signature. An unsigned charter is a draft, and a draft does not settle an argument.
- Written and filed. A charter that is not reopened when scope is challenged has done half its job.
- Confused with the business case. A charter that tries to carry the financial justification becomes long enough that nobody reads either part.
Related terms
Business case — the investment argument that precedes the charter. Project initiation document — the fuller PRINCE2 artefact, of which charter-like content is one part. RACI matrix — the responsibility mapping usually built at the same time. Change request — the mechanism by which chartered scope is formally altered. Project closure — where the success criteria set in the charter are tested.
Questions
Who signs the project charter?
The sponsor. Where funding and business ownership sit with different people, both normally sign. The project manager drafts it but signing it does not confer the authority it describes.
How long should a project charter be?
One to three pages for most projects. If it grows beyond that, content that belongs in the business case or the plan has usually migrated into it.
What is the difference between a charter and a business case?
The business case argues that the project is worth the money and holds the costs, benefits and options. The charter names the objective, scope, roles and boundaries. The business case justifies; the charter authorises.
Does a charter change during the project?
Rarely, and only through change control. If scope moves substantially, the charter is amended and re-approved rather than quietly rewritten, so the audit trail survives.