How to Create a Project Charter

A project charter documents the initial information on the project background, purpose, and assumptions, and it formally authorizes you (the project manager) to start a project. This means that you need a project charter signed before you start a project.

The project sponsor, who is most likely the account manager or senior manager who assigned you to manage the project, may share a project charter (or statement of work) with you, or you may need to ask the project sponsor specific questions to collect the correct information and to create a project charter.

Access our Project Charter Template (including examples)!

Sections of a Project Charter

Keep reading to learn about the information to include in a project charter:

• Background
• Scope
• Assumptions and Constraints
• Impact
• Success Measures
• Stakeholders
• Resources
• Signatures

Background

The background should explain the business case for the project. It should include a background of the business itself (such as their vision, mission, and values), as well as the specific problem and needs that the project will address, and the results that the project should achieve to address those needs.

It is important to describe the project background in detail, so that the project stakeholders understand WHY this project is important to the business.

Ask these questions to confirm the project background:

• Why are we doing this project?
• What problem are we addressing?
• What results do we want to achieve?

Scope

The scope describes the milestones and deliverables for a product, service, or result, and the acceptance criteria for those milestones and deliverables.

It is important to describe the project scope in detail, so that the project stakeholders have the same understanding of WHAT they will deliver, HOW they will deliver it, WHERE they will deliver it, and WHEN they will deliver it.

In addition to including what is in scope, you want to include what is not in scope, to help minimize the probability of delivering a project that is not in scope, on time, or on budget.

Ask these questions to confirm the project scope:

• What are the milestones and deliverables?
• What are the acceptance criteria for the milestones and deliverables?
• How will we deliver the milestones and deliverables?
• Where will we deliver the milestones and deliverables?
• When are the milestones and deliverables due?
• What is not in scope for this project?

Assumptions and Constraints

According to the PMBOK® Guide (2021), a project assumption is “a factor that is considered to be true, real, or certain, without proof or demonstration”, and a project constraint is “a factor that limits the options for managing a project, program, portfolio or process”.

Assumptions and constraints may be around any factor of the project, such as the scope, schedule, budget, resources, processes, etc.

It is important to describe any assumptions and constraints made prior to starting a project, and to confirm them to be true, so that the project stakeholders can successfully plan for the project and reference them, as well as any new assumptions or constraints that develop, throughout the project.

Ask these questions to confirm the project assumptions and constraints:

• What assumptions have we already made?
• What constraints do we need to satisfy?

Impact

The project may positively or negatively impact existing people, process, or procedures, or may have other social, environmental, or financial impacts.

It is important to understand the impact a project will have prior to starting a project, so that the project stakeholders can successfully deliver the project and minimize the effect of any impacts.

Ask these questions to confirm the project impact:

• What impact will this project have on other people, processes, or procedures?
• Are there any other social, environment, or financial impacts?

Success Measures

Success measures measure the success of project, and can include, but are not limited to, comparing project actuals to baselines (e.g., scope, schedule, cost), measuring the quality (e.g., errors and defects), measuring the team’s efficiency, measuring client satisfaction, and measuring return on investment (ROI).

According to the PMBOK® Guide (2021), “effective measures allow for tracking, evaluating, and reporting information that can communicate project status, help improve project performance, and reduce the likelihood of performance deterioration.”

Ask these questions to confirm the project success measures:

• What should our success measures be?
• How, when, and to who should we report on the success measures?

Stakeholders

A project stakeholder is an employee, contractor, client, or other stakeholder who has influence on, or who has interest in, a project and its results.

It is important to confirm all the key stakeholders on a project, prior to starting the project, so that you know WHO to engage with on the project.

Ask these questions to confirm the project stakeholders:

• What roles do we need on this project team?
• What employees are on the project team and what is their title and contact?
• What contractors are on the project team and what is their title and contact?
• What client stakeholders are involved and what is their title and contact?
• Do we need to keep any other stakeholders in the loop?

Resources

The project resources may include, but are not limited to, initial funding, hardware, software, office locations, etc.

It is important to confirm all resources on a project, prior to starting the project, so that you know what resources you have available for the project and can obtain those resources for the project on time.

Ask these questions to confirm the project resources:

• What other resources do we need (e.g., fundings, hardware, software, etc.)?
• Who is the point of contact for these resources?

Signatures

A project charter should include the signatures of the project sponsor and other key decision makers since the project charter gives the project manager authority to start a project. Without the signatures, you will not have authority to start a project.

What’s Next

Once you receive a signed project charter, you are ready to start your project. Always refer to the project charter throughout the project, so that you can maintain control of your project.

Check out How to Start Your Project for more information on how to start a project.