What Is a Project Charter in Project Management?

Christina Klipfel

Author

March 20, 2026

16 min read

While you’ve probably already heard about this document, you may not fully know its definition or main components. In this article, we explain why every company should create one. We’ve also prepared simple examples so you can easily draft your own.

Let’s get started.

Project Charter Definition

When asking what is a project charter, the answer lies in its role as a guide for project objectives and stakeholders.

A charter can be simply defined as a formal document that includes several key components: its purpose, goals, scope, key tasks, and the people responsible for the deliverables. You can see it as an instruction that keeps team members in sync from day one.

Each participant can turn to it at any time since it serves as a roadmap. The document doesn’t only serve as a guide for all decisions regarding the work, but also ensures that everything stays on track.

A clear project charter definition helps teams understand the purpose and scope of a project from the start.

What Is a Project Charter in Project Management

It can be seen as the foundation for successfully realizing an idea in project management. Everyone—team members, managers, stakeholders, or any other sponsor—can check this convenient document at any time.

Ultimately, it serves as a plan for the project. Referring to it helps each participant ensure they’re on the same page and moving in the same direction.

PMI & PMBOK Project Charter Definitions

The definition of a project charter may vary depending on the sources. Let’s review some of the most authoritative ones.

According to the PMI (Project Management Institute), “the project charter is used as a reference throughout the project to ensure that the project scope does not change.”

From this pmi project charter definition, we can see that the document is usually written once the case is presented to stakeholders. Only when it receives approval does it serve as the official green light to start work.

Notice that the ready papers need to be signed by sponsors since this is the proof that he will be responsible for all the necessary financing.

Within the PMBOK Guide, this foundational form is seen as “a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.”

Furthermore, the definition implies that it should provide or reference:

• The requirements
• The business needs
• A summary schedule
• The assumptions and constraints
• The business case, which should also include ROI (return on investment).

According to the project charter definition PMBOK, it is a key document that outlines a project’s purpose and stakeholders.

Why a Project Charter Is Important

A clear project charter meaning ensures that all stakeholders are aligned on project goals and expectations.

Planning records deliver formal acceptance, allowing the work to begin and business resources to be used.

Here are the main reasons why this document is so important:

Shows the Value of a Project

Besides including all the different details about works, it will also show the link between objectives, needs, and goals of the company.

Keeps the Team Informed

It’s very important that all team members are well aware of the goals and objectives. Each participant needs to be informed from day one regarding the estimated timeline, scope, and key deliverables, among others.

Establishes a Timeline

Having a timeline is crucial for successful completion. However, sometimes the schedule is only communicated to internal and external stakeholders once work begins. Since the timeline is so important, the project charter helps set clear expectations for it.

Creates a Link to Portfolio Management

Portfolio management is a way for companies to measure the success of all business initiatives against the goals and objectives of the entire organization. Since the document creates a direct link between the work and the objectives it supports, it becomes much easier to identify not only successful initiatives but also areas that need improvement.

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Defines the Project Success Criteria

As you already know, to determine the success of undertakings, you need to follow some criteria. This is done by clearly detailing expectations and the metrics you’ll use to measure the results.

Prevents Scope Creep

Unfortunately, many work streams continue to experience scope creep. The reality is that such a problem contributes not only to delays but also to poor outcomes and budget overruns. However, this can be prevented by using an initiative plan since the scope and goals are clearly defined from the very beginning.

The 10 Key Components of a Project Charter

When you’re looking to create a guiding document, remember that you need to include some elements. While these can vary depending on the types of work and company, the following are the most important components:

#1. Business Case

It addresses how the specific undertaking can actually serve the company’s goals and objectives with its deliverables and outcomes. It should also show the benefits it will bring to the business as a whole.

Ultimately, it should clearly show the value of the project.

#2. Project Purpose

Always include in your plans why the work is being done by explaining the problem it will address.

#3. Stakeholders

These people should be seen as everyone who is tied to the idea realization and who will be updated about it. They may include investors, decision-makers, third-party contractors, or even customers.

#4. Resources

These are assets your team needs to complete tasks. Resources include software, technology, productivity tools, charts, and more.

#5. Scope

In other words, all the work that needs to be done to complete the project. This covers the objectives, deliverables, and boundaries. The main goal of defining a scope is to make sure that all the expectations are clear and prevent creep.

#6. Deliverables

It’s what stakeholders can expect when the work is complete. It may be a report, a document, a new product, or many others.

#7. Objectives

These are the goals that the project should achieve.

#8. Timeline

The timeline is used to determine milestones for the workflow.

#9. Potential Risks and Dependencies

Managers should consider it even before execution begins.

#10. Assigned Project Manager

The charter needs to also include the name of the employee responsible for the project. You should also make sure that you include their duties, role, and authority.

Project Charter Examples

Example #1: BrightPath Solutions Project Charter

Example #2: GreenWave Marketing Project Charter

How to Write a Project Charter Step-by-Step

To write your own planning document, you first need to gather insights from different people and then put everything down on the paper. Here are the steps you need to take.

Step #1: Determine the Purpose & Project Scope

In this first step, you will need to connect the purpose of the idea to the business case and define its deliverables, boundaries, and exclusions.

Step #2: Define Project Goals & Objectives

Now is the time to specify the different goals and objectives. Ensure that they are SMART—specific, measurable, attainable, relevant, and time-bound.

Step #3: Assign the Project Manager & Team Members

In this step, you need to state who is responsible for completing the work. Also, clarify the roles and responsibilities of the team members.

Step #4: Project Schedule

This is when you should take care of determining key deliverables and major milestones.

Step #5: Timeline and Budget

When you create a timeline, it will be important to identify the most significant dates and milestones. But more than this, you should also include the estimated financial resources for this project.

Step #6: Potential Risks

The step you can’t miss. You need to make sure that you identify all potential risks that may affect the success of the results. It’s significant not only to describe possible challenges and uncertainties but also to explain how you will handle and mitigate them.

Step #7: Get the Formal Authorization

When you’ve already had all the details, you only need to get the final approval and authorization. Have the document signed by either relevant stakeholders or governing bodies, depending on the work.

4 Tips & Best Practices for Writing a Good Project Charter

Even if this is the first time you’re writing a plan, we’re confident it won’t be difficult at all. Here are some tips and best practices to consider:

Project Title

It may seem evident, but many people overlook it. A title is an integral part of any document, and a project charter is no different.

Don’t Forget the “What” and the “How”

You need to answer questions such as "What is this project about?”, “What results are you looking to achieve?”, “How do you plan to achieve those results?”. Without clarifying these issues, no one will know what they are working toward.

Leverage the Resources Available

When you are writing your project charter, you should consider the company’s resources available. It gives you a better understanding of the work and its context. You may also check previous initiatives and files that might help you improve your current document.

Don’t Ask for Authorization Immediately

Don’t hurry when completing the project charter. First, make sure you haven’t missed any details or important information. It’s always a good idea to leave it for a day or two and then revisit the document. You may also ask someone else to read it to get a fresh perspective.

8 Common Mistakes to Avoid When Writing a Project Charter

Writing a project charter is not difficult. However, to make your document clear and accurate, try to avoid common mistakes.

#1. Information Overload

On the one hand, the main idea of creating a planning framework is to give a clear overview of the work from beginning to end. But on the other hand, you may find yourself with an information overload. Ultimately, you need to look for all the data that is relevant and necessary without making the document complicated or confusing. When in doubt, keep only the essential information.

#2. Too Many Details

This problem comes along with the previous one. In what concerns the initiative brief, you need to focus on high-level information rather than including a lot of details. Remember that your document should be easy to read and serve as a reference for now and the near future.

#3. No Stakeholder Involvement

Make sure you always include stakeholders. Missing them may lead to many problems in the near future. For example, potential conflicts and misaligned expectations.

#4. Mix the Elements

Above, we’ve shown you the different elements that a project charter needs to include. Make sure you don’t mix them since it may make the document confusing.

#5. Vague Goals and Undefined Scope

Previous mistakes can lead to scope creep and confusion. To prevent misunderstandings, don’t forget to link the project’s boundaries, goals, and purpose.

#6. Inadequate Identification of Potential Risks

When you don’t clearly address potential risks and ways to mitigate and manage them, it may lead to unexpected issues and problems during the work.

#7. Overly Ambitious Schedules and Budgets

Doing this means setting up the initiative for failure. You should always ensure that both timelines and budgets are realistic and achievable.

#8. Not Revisiting the Document When Needed

Sometimes, it’s necessary to revisit the initial document. While a project charter is intended to remain stable, you may need to make adjustments or add clarifications. Failing to do so can lead to misaligned expectations and confusion.

Keep Your Plans Clear

While using a project charter isn’t mandatory, it is, without any question, very important. This tool manages to aggregate all the information regarding the work, including scope, purpose, and key stakeholders.

Along with this article, we detailed all the elements you should include in your planning and provided a step-by-step guide to help you write one.

Finally, we delivered some tips and best practices and shared some of the most common mistakes people make when creating a brief description of an initiative.

No matter if you’re about to write your first project charter or have already written these documents before, keep in mind that they lay a strong foundation for successful planning and execution.

Companies with a large project load can benefit from creating ready-to-use templates and automating their distribution to all participants. This is made possible with the help of specialized software. Flowlu is one example.

The platform is designed for project management needs, providing all the essential tools to streamline work and keep it under secure control. With its Document Module, users can quickly create, customize, edit, and distribute any type of document to inform employees, stakeholders, and clients about the company’s initiatives.

If you value having everything in its place, try virtual storage where no plan is ever lost or forgotten.

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