Explain the purpose and importance of the project charter.

A project charter is the first step of a project and announces that the project has started. The purpose of the charter is to designate key roles such as the project manager and the involvement and support of management.

The purpose and importance of the project charter.

What is the purpose of a project charter?

  • The purpose of the charter is to designate key roles such as the project manager and the involvement and support of management.
  • The purpose of the charter is to identify all the stakeholders required for the project.

The content and audience of a project charter

Explain the purpose and importance of the project charter

The purpose and importance of the project charter


A project charter is the first step of aproject and announces that the project has been initiated. The purpose of thecharter is to designate key roles such as the project manager and theinvolvement and support of management. Projects are temporary activities andthe roles assigned to manage the project, is terminated when the contract iscompleted. 

The project charter is also thecommunication instrument to inform other people in the organisation that aproject will commence. 

The content and audience of a project charter

Depending on the audience and their geographical distribution, the project charter can be an emailed or distributed as a hard-copy signed Word document. It should be communicated to as many as can be practically reached. Staff members are informed and up-to-date with developments and feel inclusive when they are included in the initial steps.

The project charter contains the following elements:


The benefits of a project charter

  • It improves and paves the way for good customer relationships.

  • Project Charters are an important resource to improve project management processes.

  • By documenting a project charter, project sponsorship can also be achieved.

  • Project Charters recognises senior management roles.

  • It allows progression, which is aimed at achieving industry best practices

    Who should sign the project charter?

    The two main role-players should sign the project charter. The project sponsor, as the one who will support the project and the customer should also be a signatory to the project charter. This will give the project manager a vote of confidence knowing he/she has the support of the two key personalities.