What Is a Project Charter? Guide, Examples & Template 2024

Key Takeaways: What Is a Project Charter?
  • A project charter serves as a concise overview of the project ahead.
  • A charter is an essential document that helps people learn the different roles within the project.
  • Project charters enable teams to understand the key areas they must focus on to reach their project goals.

Facts & Expert Analysis About Project Charter Meaning and Purpose:

  • Use templates: New and inexperienced project managers should use a project charter template — which many leading project management software platforms offer — to help get started.
  • Seek approval: To create the best possible charter, get a second pair of eyes to look it over before sharing it with your team.
  • Don’t overthink: A project charter should serve as a factual document and shouldn’t take too much time. You can spend more time on strategies when developing a detailed project plan. 

While the best project management software can help with a project’s day-to-day management, a project charter serves as the starting point of its success. If you’re not sure what project charters are and what role they play in a project timeline, don’t worry — we’ll explain it all in our “what is a project charter” guide.

Beyond defining what a project charter is, we’ll also show you the best practices to create and implement one to give your project the best chance of success. We’ll also explain all the elements that go into a project charter document and outline how it can help you achieve your goals. 

Definition: What Is a Project Charter?

A project charter is a formal document that outlines key details about an upcoming project. Project managers tend to assemble project charters as they outline core project objectives and list key project stakeholders

Popular project management software platforms like
monday.com offer project charter templates.

That’s not all the document includes. Below, we’ll explain what role the charter plays in project management and why it’s critical to get it right.

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What Is a Project Charter in Project Management?

To ensure that the project’s goals are reached, a project manager must consider several factors. Aside from daily tasks, it’s important to manage project scope and spending to prevent scope creep from becoming an issue and to clarify who the key points of contact are within the project.

Simply put, a project charter is an overview that explains why a project is taking place and what its key deliverables are — it serves as an initial guide for everyone involved. Many confuse this with a project plan, but it’s not the same. We’ll outline their differences in the next section. 

Project Charter vs Project Plan

Although a project charter may fall under the project planning tree, it differs from a project planning document. A project plan goes into more detail about how you will complete a project. It includes core daily tasks and strategies on how you can complete the necessary work to meet your goals.

Project Charter

A project charter provides an overview of an upcoming project and goes into greater detail.

The project plan delves into specifics like project milestones and crucial deadlines. You’ll also find more details about the project schedule and learn how you’ll stick to the timeline in a project plan. In other words, a project charter is an overview of what you need to do and why, while a project plan outlines how you’re going to do it

Purpose of a Project Charter: What Is It Used For? 

There are many things to consider when taking on a new project — so much so that you may wonder if you can just skip making the project charter. As simple as they may seem, strong project charters give your team the best possible start and provide a greater chance of project success. Here’s why you need them.

  • You need project charters to explain the purpose of a project and what to expect once it begins.
  • Project charters help define a project’s scope. This means they set boundaries within your project to help keep teams on track.
  • A project charter will outline project budgets.
  • Project managers use a project charter to give a rough schedule for the project’s beginning and completion.
  • When you create a project charter, it’s important to include all key stakeholders, including a project sponsor, if applicable. You can use this information to include relevant points of contact and their contact details.

Project Charter Elements 

In this section, we’ll explore the specific elements of a project charter. All of these elements are essential and should be included in your charter.

Project Title

As simple as it may sound, your project needs a name. It should be clear, concise and easy to remember. This is especially important if you’re working in project portfolio management, as it helps differentiate your project charter for each project.

For example, if you’re working on a design project for a company’s branding, you could simply call it “[company name] Business Branding Design Project.” This name is clear and lets everyone know what the project is about and who it involves.

Project Objectives

Project objectives are simply the things you want to accomplish throughout the project. They help your team best understand the end goal, which in turn helps them develop the best path to reach said goal. 

If you’re a company creating a product, your objective may be to design and build a product that’s ready for launch. You can use the project charter to develop a strategy that lists the key team members, their roles and a timeline so you can make your objectives a reality.

Project Scope

A project scope is an overview of what you must do to meet your objectives. It shouldn’t be a full breakdown of tasks or spending, but it should offer brief details of the work ahead. 

For example, if your construction company is working on a new project, your scope may list tasks like developing the floor plan, completing ongoing risk assessment, sourcing building materials and constructing the new building. Plenty more project requirements will come in the form of subtasks, and you can reserve those for your more detailed project plan.

Budgets

The budget element in your project charter is super simple. You must document how much capital you have to invest in your project. You can use other documents to detail how you intend to use your funds throughout the project. For more information on budgeting, check out our guide to finance in project management.

Timelines

Like the budget, this is a basic entry. Clearly outline when the project will commence and when you expect to complete the work. Remember, this isn’t a space for milestones or other deadlines for specific tasks that you would plot on a Gantt chart. It’s a general project timeline that lets everyone know how long they can expect to work on the project.

Why Is a Project Charter Important?

Let’s imagine for a moment that you decide not to create a project charter. Instead, you ask your project team to dive headfirst into a project without giving them a reference point for why they’re doing the work. Below are some potential consequences of this approach, as well as reasons why using a project charter will help you achieve project success.  

Project Charters Help Avoid Uncertainty

Uncertainty within the project team is a surefire way to slow down your project. Without some form of detail on project objectives, it’s challenging to get your team on board with your goals. Project team members who aren’t invested in a project may potentially be less productive than you would like. 

Charters Improve Communication

By including project stakeholders in your project charter, your team will know everyone’s role and who to contact if they need support. Undefined roles and missing contact information can hinder effective communication, which will only lead to roadblocks within your project. 

Charters Help Minimize Scope Creep

Projects can be unpredictable, and it’s quite common for scope creep to occur, which means the project’s requirements will increase over time. Extra work can lead to missed deadlines, overspending and sometimes, project failure. Because a project charter includes a project scope, it gives the best overview of your boundaries to help you stay within them.  

Project Charters Allow You to Stick to a Budget

A successful project is one that sticks to its budget. However, sometimes spending exceeds expectations and financial resources are hit harder than you desire. Because a project charter outlines the budget, it helps you refrain from getting out of control with the company credit card.

A Strong Project Charter Sets Expectations

Although a project management plan digs deep into deadlines and milestones, project charters still offer an expectation of how long a project will last. This helps the team mentally prepare for the work ahead, as they know roughly how long they will invest their time and expertise in a specific project. 

How to Create a Project Charter 

If you’re a new project manager and have yet to create your first project charter, then below are some simple steps to create your own project charter. Even if you’re an experienced project manager, you can still use these steps to improve your project documentation. 

1. Keep It Simple

Don’t overcomplicate your project charter. Remember, its purpose is to clearly outline your project’s objectives. Avoid jargon or language that may not be easily understood, and keep it concise. Too much copy will likely lead to people overlooking valuable information. Stick to the essentials when it comes to providing the project details. 

2. Use a Template

If it’s your first time creating a charter, then you should find a robust template to guide you. It’s easy to locate a free project charter template online — you may even find one within the project management software that you use. Also, check with your company as they may already have an in-house project charter template that they prefer.

3. Go Digital

It’s always a good idea to keep project documents in a digital format as it’s easier to back them up and you reduce the risk of losing them. In our remote world, it also lets you easily share documents and involve key stakeholders that you liaise with remotely. You can use the best cloud storage services or project management software to create your documents. 

4. Create Sections

Although a project charter should be brief, it must still contain plenty of information. Separate the key points into different headings so that people can easily find the details they need. For example, one heading could be project budget and another could be project sponsors. Organizing the document better enables the reader to digest the content within the charter.

5. Check It, Then Check It Again

Before sending the project charter to the relevant team members, make sure all the details are accurate. It’s also beneficial for project managers to ask someone else to review the document. This could be your senior or someone who works alongside you. Check the organizational structure of your business to see who to ask — a second pair of eyes always helps.

Project Charter Examples

To help you better understand its role, below are some real-world examples of how you can use a project charter. Although the examples may not pertain to your industry, their structure is transferable regardless of the sector. 

Project Charter Example 1: Project Charter for an Interior Design Company

Project Title: SoHo House London Remodeling Project

Project Purpose: To fully remodel and design the interior of SoHo House. 

Project Aims: 

  • Design a completely new interior and receive approval from the client.
  • Install the new design by the required deadline.
  • Secure further contracts for other SoHo House locations.

Project Scope:

  • Graphic designers need to create designs for offices, meeting rooms and kitchens. 
  • We must design furniture throughout the premises. 
  • Our contractors will decorate the premises and build furniture items.

Stakeholders:  

  • SoHo House site management team
  • Graphic designers
  • Construction management team

Budget: $85,000

Timeline: July 1, 2024to March 1, 2025

Success Metrics: 

  • Able to gain design approval with no more than two revision requests.
  • Products are built with no production delays.
  • Hired to remodel other properties within the SoHo House portfolio.

Project Risks:

  • Encounter delays to the construction of furniture items.
  • Unable to agree on the final design.
Project Charter Example 2: Product Launch for DG Sneakers

Project Title: DG Sneakers Product Launch 

Project Purpose: To successfully market the launch of the latest sneakers in the DG line.

Project Aims: 

  • Create a successful marketing campaign across social media and Google Ads.
  • Use the marketing campaign to help DG Sneakers reach its sales targets.
  • Simultaneously help DG Sneakers grow its social media presence.

Project Scope:

  • Design online materials in different formats for specific platforms.
  • Divide project budget across different platforms and invest funds accordingly.
  • Promote social interaction online to help build a following.
  • Allocate sneakers to high-end influences.
  • Conduct ongoing review of metrics to ensure marketing spend brings in the best value.

Stakeholders:

  • DG Sneakers 
  • Social influencers
  • Designers

Budget: $150,000

Timeline: Sept. 1, 2024 to Jan. 1, 2025

Success Metrics:

  • DG Sneakers signs off on marketing materials.
  • Onboarding of key influencers is managed successfully.
  • Able to hit or exceed sales targets.

Project Risks:

  • Unable to agree on marketing design, potentially slowing down the launch.
  • Funds are spent on ads and the targeted returns aren’t received.
  • Social influencers don’t agree to help promote the product.

Project Charter Template

Clickup project charter template

ClickUp has a range of project management charter templates available.

If you’re struggling to find a project charter template, don’t worry. We’ve done some research, and there are plenty of options out there. Check the links below to find some templates that we approve of — we’re sure they’ll help you create the best project charter. They come in a range of formats, including a sample PDF and Excel file.

Final Thoughts

By now, we trust that you have all the knowledge you need to start implementing project charters into your workflow. Remember, if you’re a new project manager, take advantage of the above templates and aim to make your own as your experience grows. You can also check out our monday.com review and ClickUp review to see what these platforms offer beyond templates.

Did you find this guide useful? What other parts of project management would you like us to explain? What’s your favorite tool for project documentation? Let us know in the comments. Thanks for reading.

FAQ: Project Charter Definition

  • A project charter is a formal document that outlines the purpose of a project, the people involved and its key objectives.

  • The elements of a project charter are the overview, scope, schedule, budget and stakeholders. Some charters also include potential risks; however, this depends on the project manager who is writing the charter for that project.

  • A project charter helps teams understand the motivation for a specific project, its core objectives and its key stakeholders.

  • A project plan offers more detail on how teams will approach and complete a project. It outlines strategies for completing tasks, and highlights milestones and deadlines. A project charter gives more of an overview of why a project is happening and what its objective is.


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