Develop Project Charter  is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

 

The key benefit of this process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project.

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The project charter establishes a partnership between the performing and requesting organizations.

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In the case of external projects, a formal contract is typically the preferred way to establish an agreement.

In this case, the project team becomes the seller responding to conditions of an offer to buy from an outside entity.

 

A project charter is still used to establish internal agreements within an organization to assure proper delivery under the contract.

 

The approved project charter formally initiates the project.

 

A project manager is identified and assigned as early in the project as is feasible, preferably while the project charter is being developed and always prior to the start of planning.

 

The project charter should be authored by the sponsoring entity. The project charter provides the project manager with the authority to plan and execute the project.

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It is recommended that the project manager participate in the development of the project charter to obtain a foundational understanding of the project requirements.

 

This understanding will better allow for efficient resources allocation to project activities.

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Projects are initiated by an entity external to the project such as a sponsor, program or project management office (PMO) staff person, or a portfolio governing body chairperson or authorized representative.

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The project initiator or sponsor should be at the level that is appropriate to procure funding and commit resources to the project. Projects are initiated due to internal business needs or external influences.

 

These needs or influences often trigger the creation of a needs analysis, feasibility study, business case, or description of the situation that the project will address.

 

Chartering a project validates alignment of the project to the strategy and ongoing work of the organization.

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A project charter is not considered to be a contract, because there is no consideration or money promised or exchanged in its creation.

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