Meta- The many components that make up the agile project charter also serve the purposes of enhancing project communication, defining resource requirements, assisting in risk mitigation, and advancing official project planning.

A project charter meaning is written before a project is given official approval, provides a basic description of the project and links it to the organization's objectives to make a business case. The document, which is typically one to three pages long, is used to market the project's advantages so that the business can decide whether the costs are reasonable given the potential rewards.

The many components that make up the agile project charter also serve the purposes of enhancing project communication, defining resource requirements, assisting in risk mitigation, and advancing official project planning. The platforms like Eduhubspot provide the best training for becoming a project manager so that you can make a project charter in the right manner.

What is a project charter?

The problem statement and project goals that make up the project charter explain why the company should take on the project. Additionally, it lists the stakeholders who are involved, any known risks and restrictions, potential benefits, a general idea of the project's budget and schedule, and its scope. Other content typically includes project assumptions, success criteria, project approval requirements, information about the project team, and a place for sponsors to sign off on the project.

The agile project charter is finished and presented to stakeholders for approval by the project initiator. If the project is a success, the sponsors will sign the project charter, and it will then begin. If the project is rejected by the stakeholders, there may be discussions about the project's specifics to address any issues raised.

Project plan vs. project charter

Other project documents, such as the project plan, are created using the project charter as a guide. The project charter and project plan, though frequently confused with one another, differ in their goals, scope, and depth.

A project team develops a project plan only after the project has been approved, whereas a project initiator first creates a project charter with basic information and the intention to obtain approval for a project.

The project plan goes much further and contains information such as specific task assignments, plans for human resources, a plan for managing communications, tools used, and change control procedures. The comprehensive project scope, procurement plan, risk register, quality management plan, budgets, and schedules are also included in the contents.

As a result, unlike the project charter, which is one document, the project plan is made up of numerous documents. The project's daily operations will be carried out according to the plan, which will act as a guide.

Purpose of the project charter

The main goal of the project charter is to convince management that the project is necessary for the company in terms of potential benefits versus costs, time, and resources for management to approve the project. In addition, the document accomplishes the following goals:

Make costs and resources clear

The project charter means a general estimate of the project's cost and the personnel it will need. As a result, it helps to assess whether the company's resources—both financial and human—can meet the demands. This lessens the chance that the business will begin a project that it cannot afford or manage and ultimately be unable to complete.

Use as a guide for additional project planning.

The project charter assists the project manager with actual planning tasks even though it only covers the fundamentals. For instance, the estimated project cost acts as a starting point for acquiring the required resources, and the estimated time to completion aids in the development of project schedules and work breakdown structures, which aid in task assignment. To help prevent taking on work outside the parameters of the initially approved project, the project team can also review the project charter.

Boost communication within the project.

A project charter assists in ensuring that the entire project team is informed because it identifies stakeholders and their roles and responsibilities in the project. Team members can quickly identify who is in charge of each task, reducing confusion that could result in expensive errors or impede the project's execution. The PMP bootcamp will assist you in learning the making of project charter.

Determine any potential issues.

The project team can be better prepared for potential issues by using a project charter as a basic risk assessment tool. The charter might list scope creep and budget creep as two risks to be aware of, for instance. The team would be aware of the need to closely monitor change requests and make sure that activities stick closely to the budget to prevent the company from having to abandon the project early due to a lack of funding.

Be open to negotiating the specifics of the project.

The project charter is essential documentation that enables further negotiation to try to win approval if the stakeholders initially reject the project. Stakeholders, for instance, can carefully examine the project's resource requirements and potentially negotiate issues like scope, price, or the need for human resources.

Why would you write a project charter?

No matter how big or small, every project requires effort and time. It also necessitates meticulous planning at each stage of the procedure. The steps necessary to realize your vision is laid out in the project charter. This document acknowledges the existence of your project, outlines its goals and specifies when it will begin. At the same time, it enables more efficient resource allocation and aids in avoiding stakeholder disputes.

This tool aids in decision-making and guarantees that your project is in line with the objectives of the business. Additionally, it gives the project manager permission to spend money and acquire resources. You'll be able to foresee any potential risks and disadvantages by creating a project charter. This can assist you in making plans and preventing future costly mistakes.

The project charter can later be used by your team as a guide. This document can be used to remind participants of the project's advantages and objectives during meetings. This document also makes it simpler to develop a budget and determine a ballpark cost estimate for the project. In the end, it can assist you in reducing risks and offer a strong basis for decision-making.

The project's goal and scope

The primary distinction between a project charter's goal and a scope statement is that a project scope establishes the project's boundaries. To outline the objectives, a preliminary scope document is first created along with the charter and other initiation documents. Although it does not specify how tasks will be carried out, this document is typically given to the team leads who will contribute to the project team.


A team charter should accomplish the same goals for any team, much like a project charter does. Although it applies to a team rather than a project, its components are similar.

It will outline the goals for the team's future and make clear the criteria for gauging the team's success. It will also explain why the team is being formed and the types of projects it will lead.