4.

1 Develop Project Charter

The process of developing a document that formally

authorises the existence of the project and provides the
project manager with the authority to apply organisational
resources to project activities.
• The high level Project Scope and Timeframe is often
specified during this process
• Any Project Timeframes specified at this stage are
predictions or preferences only, they have not been
subject to detailed planning and scheduling processes
• Assumptions should be documented and formal Monitor

commitments avoided Initiation Planning Execution Close

• Occurs during the Initiation Phase Control

Adapted from PMBOK 5th Edition
 4.1 Develop Project Charter
• The Project Charter establishes a partnership between
the Project Sponsor or client or external organisation and
the Project Manager and team
• It provides a formal way for senior management to
commit to the project.
• The high level Project Risks are identified and an
estimate is made of the overall risk of the project, this
can be important to project prioritisation decisions

Monitor

Initiation Planning Execution Close

Control
Adapted from PMBOK 5th Edition
 4.1 Develop Project Charter

Inputs into the Project Charter -

 Project Statement of Work
 Business need or rationale
 Product and project description
 Strategic Plan
 Business Case
 Regulations and standards
 Contractual requirements
 Methodologies, policies and procedures

Adapted from PMBOK 5th Edition

 4.1 Develop Project Charter

Inputs into the Project Charter that have a major impact on

Project Timeframe -
 Business need or rationale
 Strategic Plan
 Business Case assumptions
 Contractual requirements
 Methodologies, policies and procedures
• The output at this stage is a preferred Project Timeframe
• It is best specified as a range estimate
6 to 12 months
• Assumptions made with respect to Time must be
documented to prevent misunderstandings and conflict
 4.1 Develop Project Charter

There are very limited tools and techniques to develop the

Project Charter
The primary area of assistance comes from experts who
have specific skills and experience in the type of project
being documented in the Project Charter

Project
Consultants Professional Focus Management
Project
Associations groups Office
Sponsor

Industry
Stakeholders Subject Matter Other Project Research
Groups
Customers Experts Managers

Adapted from PMBOK 5th Edition

 4.1 Develop Project Charter

The major output of this process is the Project Charter and

perhaps some form of official approval to proceed with the
project
Common contents of a Project Charter – 10,
$
 Project purpose or justification 00 0
 Project objectives – should be measurable
+o
r -5
 Project description 0%
 High level requirements
 High level risks or overall risk analysis
o n th s
 Preferred timeframe 1 2 m
 Estimated high level budget 6 to
 High level project structure – Project Sponsor, Project Manager
 Authorisation or Governance processes
Project
Sponsor

Project
Assistant
Adapted from PMBOK 5th Edition

Plumber Electrician Telephonist

 Types of Project Charters

You may know a Project Charter by a different name as

they can vary depending on your industry or the particular
methodology being applied
Project
Brief

Some common names for

Project Charters include –
Statement Project Concept

Charter
of Work Paper

High
Level Plan
 Project Objectives

It is critical that the project objectives and success criteria

are measurable and have been signed off by the Project
Sponsor, otherwise progress and success are difficult to
achieve
Specific
The recommended
method is SMART Measurable

Achievable
Make sure all your
objectives are – Realistic, and

Time Bound