Project charter: what it contains and how to write one
A project charter is a short document that officially starts a project. It states what the project will achieve, who leads it, with which resources and within which boundaries. While a business case answers “is it worth it?”, the project charter answers “how do we start it and who is accountable?”.
When you need a project charter
- right after the business case or budget is approved,
- when the project needs a project manager with clear authority,
- when several departments or an external vendor are involved,
- when you want the scope agreed from day one to prevent scope creep.
Project charter vs. business case
The business case justifies the investment: the problem, options, costs, benefits and risks. The project charter follows the decision and formally establishes the project: objectives, scope, team, budget, milestones and authority. The business case comes before the decision; the charter comes after it.
Project charter structure
1. Project name and purpose – one or two sentences on why the project exists.
2. Objectives and success criteria – measurable objectives and how the project will be evaluated at the end.
3. Scope – what the project delivers and what is explicitly out of scope.
4. Key deliverables – concrete results, such as a deployed system, trained users, documentation.
5. Milestones and timeline – key dates, not a detailed plan.
6. Budget and resources – approved funding, people and their capacity.
7. Project organisation – sponsor, project manager, steering committee and their authority.
8. Stakeholders – who is affected by the project and who must support it.
9. Key risks, assumptions and constraints – the essentials; a detailed risk register comes later.
10. Approval – who approves the charter and when.
Common mistakes
- Too long. A charter should be a few pages, not a detailed project plan.
- Unclear authority. If it is unclear what the project manager and the sponsor decide, decisions stall.
- No scope boundaries. Without stating what is out of scope, the project grows uncontrolled.
- Objectives without a measure. “Improve collaboration” is not an objective; “cut contract approval from 10 to 3 days” is.
Example: a project charter created in Baaito
The brief we gave Baaito:
A company is moving its corporate website and customer portal from its own servers to the cloud. The project should take 4 months with a budget of €45,000; the team is a project manager, 2 developers and an external cloud provider. The sponsor is the IT director.
Sample document
Project Charter — Website Migration to the Cloud
The first pages of a real document Baaito generated from the brief above.
Project Charter — Website Migration to the Cloud
Project Purpose and Business Justification
The project concerns the migration of the company’s corporate website and customer portal from company-owned servers to the cloud.
The stated project duration is four months, with a budget of €45,000. The identified delivery team comprises a project manager, two developers, and an external cloud provider. The IT director is identified as the project sponsor.
The business justification, expected benefits, strategic alignment, and consequence of not proceeding are TBD — approved business case or sponsor justification required. The specific authorization decision sought is TBD — sponsor authorization request and approval conditions required.
This charter is limited to project initiation and authorization. Detailed migration planning, technical design, implementation sequencing, and operational transition planning are TBD — approved scope and delivery planning inputs required.
Objectives
Authorized project objectives are TBD — approved objectives input required.
The following objective attributes are also TBD — approved objective definitions required:
- Outcome to be achieved.
- Beneficiary or affected business area.
- Measure and baseline.
- Target value.
- Accountable owner.
- Completion timeframe.
- Relationship to the stated cloud migration purpose.
The four-month duration is a stated planning expectation, not a complete objective or approved schedule commitment. The €45,000 amount is a stated budget figure, not evidence of an approved funding envelope or budget authority.
Scope and Boundaries
| Scope Item | Classification | Description | Rationale | Owner | Status |
|---|---|---|---|---|---|
| Corporate website migration from company-owned servers to the cloud | Potentially included | The supplied brief identifies migration of the corporate website as part of the project. Detailed boundaries and acceptance conditions are TBD. | Based on the supplied project brief | TBD — scope owner required | Proposed; scope approval TBD |
| Customer portal migration from company-owned servers to the cloud | Potentially included | The supplied brief identifies migration of the customer portal as part of the project. Detailed boundaries and acceptance conditions are TBD. | Based on the supplied project brief | TBD — scope owner required | Proposed; scope approval TBD |
| Cloud environment and migration activities | Potentially included | The project references an external cloud provider, but the required cloud services, configurations, integrations, security arrangements, and migration activities are TBD. | Required to determine how the stated migration will be delivered | TBD — approved scope and technical input required | TBD |
| Project management and development resources | Project resource boundary | The stated team comprises a project manager and two developers. Responsibilities, capacity, allocation, and duration are TBD. | Based on the supplied team description | TBD — resource authority required | Proposed; resource confirmation TBD |
| External cloud provider involvement | Project interface | An external cloud provider is identified as part of the team. Contractual responsibilities, deliverables, authority, and handoffs are TBD. | Based on the supplied project brief | TBD — provider responsibility input required | Proposed; confirmation TBD |
| Project duration | Constraint or planning parameter | The project should take four months. Start date, end date, schedule basis, and whether this is an approved commitment are TBD. | Based on the supplied project brief | TBD — schedule authority required | Indicative |
| Project budget | Constraint or funding parameter | The stated budget is €45,000. The funding source, cost estimate basis, authorized limit, and included cost categories are TBD. | Based on the supplied project brief | TBD — funding authority required | Indicative |
| Explicit exclusions | Excluded scope | No explicit exclusions were supplied. | Exclusions cannot be inferred from silence | TBD — scope authority required | TBD — approved exclusions input required |
| Scope-change authority | Governance boundary | The authority permitted to approve scope changes is TBD. | Required to control the authorization boundary | TBD — governance decision required | TBD |
Template used: Project Charter
How to do it faster
Baaito asks exactly the questions a project charter needs and turns your answers into a Word or PDF document. If you already have a business case, attach it as a source.
FAQ
Who writes and who approves the project charter? Usually the project manager prepares it with the sponsor, and the sponsor or steering committee approves it.
How long should a project charter be? Typically 2 to 5 pages. Details belong in the project plan.
Can the charter change during the project? Yes, but only through a controlled change request approved by the sponsor, so it is clear what changed and why.