The Ultimate Guide to Project Charters: Templates, Examples, and Why You Need One

A project charter is a critical project management document that serves as the foundation for any project. This comprehensive guide will provide you with everything you need to know about project charters including templates, examples, reasons why every project needs one, and a deep dive into how to write an effective charter.

A project charter is a short document that outlines the purpose, objectives, scope, timeline, budget, roles and responsibilities for a project. It formally authorizes the project and provides a high-level view of the goals and deliverables. A well-written charter helps set clear expectations and keeps the project focused throughout its life cycle.

In this ultimate guide, you’ll learn what to include in your project charter, tips for writing an effective charter, templates to use, and real-world examples. With the right charter, you can set your project up for success from the very beginning.

What is a Project Charter and Why Do You Need One?

A project charter is a formal document that details the scope, objectives, and people involved in a project. It authorizes the project manager to use organizational resources to complete the project. A charter serves as a contract between the project sponsor and the project team.

The project charter is developed in the starting phase of the project management process and once complete indicates the official start of the project. It is a project planning document that sells the project to stakeholders by providing a high-level view of what the project is and how it aligns with business objectives.

Every project needs a charter because it clearly outlines the goals, deliverables, milestones, roles, responsibilities and authority required to successfully manage the project. A well-defined charter helps get a project started on the right foot and keeps it on track through delivery of the objectives.

Key Benefits of Creating a Project Charter

There are many benefits to developing a detailed project charter:

• Defines the project purpose and goals - The charter captures the high-level information about why the project is important and what it aims to accomplish. It documents the business needs, objectives, and measures of success.

• Outlines project requirements and scope - It describes the boundaries of the project, key deliverables, and what will and will not be included. It helps define the scope of work.

• Provides project justification - It explains the needs and reasons for undertaking the project. This justification helps gain buy-in and approval.

• Documents project approval - Having sponsor sign-off authorizes the project manager to proceed with planning. It represents an agreement between the sponsor and team.

• Assigns project roles and responsibilities - The charter identifies the sponsor, project manager, team members, stakeholders and defines their roles and responsibilities.

• Sets the project budget and timeline - It identifies budget estimates and resources needed as well as outlining the timeline and key milestones for completion.

• Defines risks and assumptions - Potential issues, constraints, uncertainties and planning assumptions are called out upfront.

• Acts as a reference document - This document can be referred back to throughout the project to guide decisions and settle disputes. It keeps the project focused through execution and closure.

In summary, the project charter sets the stage for project planning and execution by providing critical information upfront including deliverables, milestones, roles, responsibilities, risks and measures of success. Investing time to write a complete charter gives your project the best chance of achieving its goals.

How to Write an Effective Project Charter: Tips and Recommendations

Writing a robust project charter may take time up front but saves effort down the road by setting clear expectations. Follow these tips for creating a high-quality charter:

• Use a template - Start with a pre-built project charter template rather than creating one from scratch. Templates include all the standard sections.

• Describe the goals and objectives - Be specific about what the project aims to achieve and how accomplishments will be measured. Get agreement from the sponsor.

• Define the scope clearly - Document what is included and excluded from the project. List major deliverables and work products. This helps avoid scope creep later on.

• Identify milestones and schedule - Include major phases, timeline, start and end dates. This will guide project execution.

• Specify resource requirements - Outline the staffing, equipment, and costs needed to complete the work. Define budget and how variances will be handled.

• Assign roles and responsibilities - Identify project sponsor, steering committee, stakeholders, team members and clearly define their individual roles.

• Document risks and assumptions - Call out potential issues, uncertainties, constraints and planning assumptions upfront so they can be managed proactively.

• Keep it short but thorough - The charter should be 1-2 pages maximum. Include enough detail without getting bogged down.

• Get formal approval and sign-off - Have the sponsor and key stakeholders review and sign-off on the charter before kickoff.

• Use as a baseline document - Refer back to the charter regularly to keep the project on track and aligned to the original intent.

Following a process and leveraging a template makes creating a project charter straightforward. Getting buy-in on scope and risk is crucial upfront to prevent issues later on.

Project Charter Templates You Can Use

Rather than drafting a charter from scratch, start with pre-built templates. Here are some excellent (and free!) project charter templates to choose from:

Free Project Charter Template from ProjectManagement.com

This comprehensive, 9-page template covers everything you need in a charter document. Sections include project purpose, requirements, scope, milestones, costs, risks, and more. Easy to customize using Word.

Project Charter Template from PM Solutions

A nicely designed Word template that includes an example charter. Has sections for vision, objectives, scope, risks, roles, and approval signatures.

Simple Project Charter Template

From the Method123 project management website, this basic 1-page template is great if you want a streamlined charter. It still covers goals, deliverables, resources, and risks.

Free Project Charter PowerPoint Template

Rather than Word, try this PPT template. It has sample slides with sections to tailor for your project charter presentation.

Project Management Institute (PMI) Charter Template

A 2-page charter template provided by the Project Management Institute. Follows leading PM practices.

The best advice is to choose an existing template that fits your project size, complexity and organization. Customize it with specifics for your initiative to create a robust charter quickly.

Real-World Project Charter Examples

Seeing actual charters can provide ideas for your own projects. Here are a few examples across different industries:

IT/Software Project Charter Example

This sample charter is for an IT project to implement a new system. It includes sections covering business needs, scope, costs, resources, milestones, risks, requirements and measures of success.

Construction Project Charter Example

For construction projects, the charter covers bid requirements, site plans, materials, equipment, deliverables, inspections, costs, schedule, risks, and stakeholder approvals.

Business Project Charter Example

This sample outlines a new product launch including goals, timeline, budget, risks, requirements, assumptions and measures of success.

Design Project Charter Example

For creative teams, the charter focuses on objectives, deliverables, reviews, approvals, requirements, risks, resources and budget required.

Simple Project Charter Example

A 1-page charter covering scope, timeline, risks, roles, and sign-off. Useful for small, low-complexity projects.

Reviewing examples from your industry helps generate ideas on structuring your own project charter. Look for templates and samples to use as a starting point.

10 Essential Sections to Include in Your Project Charter

The best project charters include these key elements:

1. Project Purpose/Justification

• Business needs and problems the project aims to solve

• Reasons for undertaking the project

• Benefits and rewards for completing the project

2. Goals and Objectives

• The desired outcomes of the project

• Success criteria and how accomplishments will be measured

• Specific metrics that define success

3. Project Scope

• What is included in and excluded from the project

• Major deliverables, work products, and requirements

• Project boundaries and limitations

4. Milestones and Schedule

• Key phases and timeline for completion

• Project start and end dates

• High level roadmap and stages

5. Cost Estimate and Budget

• Project budget, projected costs, and approved funding

• Expense approval requirements

• Guidelines for handling budget overages

6. Roles and Responsibilities

• Project sponsor, steering committee, manager, team members

• Authority of project manager

• Assignment of areas to team members

7. Risks and Assumptions

• Potential issues, uncertainties, constraints

• Planning assumptions that may impact the work

• Ways risks will be managed

8. Approval and Sign-off

• Formal sign-off by project sponsor

• Signatures from stakeholders

• Approval to commence project work

9. Change Management Plan

• Process for handling changes to scope or charter

• Role of change control board

• Thresholds for approval

10. Communications Plan

• How project status will be shared and reported

• Frequency of team meetings and stakeholder updates

Using a template ensures you cover these key elements. Adjust and customize the sections to fit your specific project situation and organization.

Helpful Tips for Writing Your Project Charter

Keep these tips in mind as you draft your project charter:

• Involve the project sponsor early - Work with the sponsor to define the goals, scope, risks, and metrics. Get their input on the charter draft.

• Conduct a kickoff meeting - Hold a meeting with sponsors, stakeholders to review the charter together.

• Keep it short but thorough - Focus on high-level information. Leave deep details for the project plan.

• Define specific, measurable goals - Include quantifiable targets and success criteria to track progress.

• Document assumptions and risks - Identify potential issues, constraints, dependencies that could impact the work.

• Specify required resources - Include needs for staffing, equipment, materials and supplies.

• Assign responsibilities clearly - Note who is accountable and responsible for each area to prevent confusion.

• Leave room for updates - Revisit and update the charter as the project matures and progresses.

• Secure formal sign-off - Obtain sponsor authorization and stakeholder buy-in before starting.

Investing time up front to create a detailed charter sets your project up for success. Use the charter as a guidepost for decision-making throughout the project life cycle.

Key Takeaways and Next Steps

To summarize, the charter is an essential document that formally authorizes the project and directs the work from initiation through closure. Here are some key takeaways:

• The charter documents goals, scope, timeline, budget, risks, roles and success metrics

• It serves as the contract between the sponsor and project team

• Using a template saves time and ensures best practices

• Conduct a thorough kickoff meeting to review the charter

• Revisit and update the charter as the project progresses

• Secure sign-off from sponsors and key stakeholders

The best way to get started is to download a template, customize it for your needs, and meet with your sponsor and stakeholders to review and finalize the charter. This upfront foundation helps ensure your project finishes smoothly and successfully while meeting business objectives.

With an authorized project charter in place, you can confidently move forward into the planning phase and rest of the project management process.