Project Charter

Phase: Pre-sales and initiation | Audience: Internal | Project: WEB-2026-01 Corporate Website Development

Understand it first

In simple words: The Project Charter is the internal document that officially starts the project. It names the Project Manager, states the objectives and budget, and says how much authority the PM has.

Think of it like: It is like an appointment letter for the project: 'This project exists, here is the goal, here is the money, and you are in charge.'

When is it created?	Start of the project (5 Oct 2026)
Who prepares it?	Project Manager drafts it
Who approves or uses it?	Project Sponsor (Delivery Head)
What happens next?	Planning begins; the PM can now use company resources

How it connects to other documents

Objectives are measured at the end in the Project Closure Report.
The budget summary comes from the Project Budget.
PM authority limits (₹10,000) are used in the Change Management Plan.

The sample document

Below is the actual document for project WEB-2026-01. Read the purpose first, then go through each numbered section.

Issued by: [Your Company] Technologies Pvt. Ltd.

Purpose: Formally authorises the project, names the Project Manager and states the objectives, budget and authority limits.

Item	Detail
Document no.	WEB-2026-01/PCH
Version	1.0
Date	5 Oct 2026
Owner	Project Manager
Audience	Internal
Phase	Pre-sales and initiation
Status	Approved

1. Project purpose

[Client Name] has awarded us a fixed-price contract to build its new corporate website. Delivering on time and within budget protects a 15.5% gross margin and positions us for a follow-on maintenance contract and a Hindi-language phase 2.

2. Objectives

#	Objective	Success measure
1	Deliver the agreed scope	All 7 SOW deliverables accepted by the client
2	Launch on time	Go-live on or before 9 Dec 2026
3	Stay within budget	Final cost within cost baseline of ₹5,03,800
4	Meet quality targets	No critical or high defects at launch; pages under 3 s on 4G
5	Satisfied client	Client satisfaction score of 4 or more out of 5 at closure

3. High-level scope

In scope: 10-page responsive WordPress website, contact form, blog, portfolio, analytics, on-page SEO, hosting setup, training and 14-day support. Out of scope: e-commerce, logins, integrations beyond the contact form, marketing, and maintenance after support ends.

4. Milestones

Milestone	Target date	Payment
Kickoff	5 Oct 2026	M1 30% (advance)
Design sign-off	30 Oct 2026	M2 30%
UAT sign-off	4 Dec 2026	M3 30%
Go-live and handover	9–11 Dec 2026	M4 10%

5. Budget summary

Item	Amount (₹)
Direct cost (BAC)	4,58,000
Contingency reserve	45,800
Cost baseline	5,03,800
Management reserve	22,900
Total project budget	5,26,700

6. Key risks

Client content arriving late.
Extra design revision rounds.
Informal scope additions.
Reduced capacity during Diwali week.

7. Project Manager authority

Assign and schedule team members' work within approved hours.
Approve changes and release contingency up to ₹10,000 per change.
Approve timesheets and third-party purchases listed in the Procurement Plan.
Escalate to the sponsor: any change above ₹10,000, any use of management reserve, or a forecast beyond the cost baseline.

8. Approval

Signed for

Signature

Date

Project Sponsor (Delivery Head)

Name and signature: ____________

Date: ________

Project Manager

Name and signature: ____________

Date: ________

WEB-2026-01/PCH · v1.0 · Internal. Bracketed items such as [Client Name] are placeholders.

Key takeaways

No charter, no official project: it gives the PM authority.
Objectives must be measurable (dates, rupees, defect counts).
It is short and high level; details go in the plans.

Common mistakes to avoid

Objectives with no measure, such as 'deliver a good website'.
Not stating the PM's approval limits.
Treating the charter as a client document; this one is internal.

Next lesson: 11. Stakeholder Register