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Charter

A concise, formal record that starts a project or phase. Issued by the sponsor, it states the purpose, high-level scope, objectives, major assumptions and constraints, key stakeholders, and broad budget and timeline, and it grants the project manager the authority to use organizational resources. See project charter.

Key Points

  • Created during initiating and authorized by the sponsor or steering body.
  • Gives the project manager authority and access to resources.
  • Captures high-level scope, objectives, success criteria, risks, milestones, and funding summary.
  • Acts as a contract-like agreement between sponsor and project team; changes require sponsor approval.

Example

A CIO signs a charter for a data-center upgrade. The document names the project manager, states the goal of reducing downtime by 40%, sets a high-level budget of USD 1.5M, identifies major risks (vendor delays), and authorizes the PM to use IT and Facilities staff to plan the work.

PMP Example Question

Which document formally empowers the project manager to apply organizational resources and defines the project's purpose and high-level boundaries?

  1. Project charter
  2. Business case
  3. Project management plan
  4. Statement of work (SOW)

Correct Answer: A — Project charter

Explanation: The charter is issued by the sponsor to authorize the project and give the PM authority; the business case justifies the project, the plan details how to execute, and the SOW describes deliverables in detail.

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