The Project Charter: Formal Authorization and Resource Authority

PMBOK v8 Definition

A project charter is 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. The approved project charter formally initiates the project, identifying and assigning a project manager as early as possible, ideally during the development of the charter and always before planning begins.

Why It Matters for the Exam

The project charter appears frequently in PMI exam questions because it establishes the formal link between the project, the business case, and the organization's strategic goals. Expect questions testing your understanding of when the charter is created, who issues it, what authority it grants, and how it differs from other project documents—particularly in situational questions about project initiation.

Key Points to Remember (for the exam)

• Primary Purpose: Formally authorizes the project and grants the project manager authority to apply organizational resources to project activities
• Issuer: The project initiator or sponsor (not the project manager, though the PM may assist in development)
• Timing: Created before planning begins; project manager should be assigned ideally during charter development
• Key Content: Links the project to the business case and the organization's strategic goals
• Adaptive Approach: In adaptive projects, charters range from minimally impactful worksheets or concise vision statements to moderately detailed documents, tailored to iterative and incremental nature
• Common Confusion: The project charter is NOT the project management plan; it authorizes the project, while the plan guides execution
• Business Documents Connection: The charter uses the business case and benefits management plan as inputs

Typical PMI Exam Example

A sponsor has approved a business case for a new software implementation. The project manager is assigned after the business case is complete. What document should the sponsor issue next to formally authorize the project and provide the project manager with authority to use organizational resources?

Answer: The project charter.

PMI Exam Traps

• Trap: Confusing the project charter with the project management plan

  • Reality: The charter authorizes the project; the plan guides how the project will be executed, monitored, and closed

• Trap: Thinking the project manager always writes the charter

  • Reality: The charter is issued by the project initiator or sponsor; the PM may collaborate in development but does not issue it

• Trap: Believing the charter is optional or can be created during planning

  • Reality: The charter must be approved before planning begins; it formally initiates the project

• Trap: Assuming the charter only contains project scope and objectives

  • Reality: The charter also grants resource authority, links to strategic goals, and establishes organizational commitment

Important PMI Connections

Quick Review Questions

1. Who issues the project charter according to PMBOK v8?

2. When should the project manager be assigned relative to the project charter?

3. What authority does the project charter grant to the project manager?

4. How does the project charter differ in adaptive vs. predictive approaches?

5. What business documents are used as inputs when developing the project charter?

PMBOK v8 Reference

Section 4.1 - Develop Project Charter (Process Group: Initiating, Knowledge Area: Project Integration Management)

Note: The charter formally initiates the project, creating an official record and demonstrating the organization's commitment. In some organizations, the project manager helps write the charter; in others, the sponsor, PMO, portfolio steering committee, or another stakeholder group performs this work.