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Signing of the Project Charter formally authorizes the project.

Project Charter Template

The Project Charter formally authorizes the project - without a signed charter work on a project cannot start. This project charter template contains all the essentail details necessary to authorize a project. Whether you're a PMP certified Project Manager, or not, this project charter will be an essential tool for you.

Project Charter Template

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1.0 Introduction

1.1 Executive Summary

The executive summary should describe the background information up to and including the reason that the project was created. The executive summary should stay focused on general information as the project’s specifics are usually not clear this early in the project lifecycle. Some of the information included here may be: the problem this project was created to address; what the project is; what the project is expected to do; and what the results of the project should be.

Over the last five years our organization has seen significant growth across all of our product lines. While this growth has been beneficial to the company and its employees, we have reached a point where we are operating at maximum capacity and can no longer accommodate any additional production requirements. In order to allow growth to continue, the Building 2 Expansion Project has been created. This project will create a new facility to house additional capital equipment in order to allow for increased production and to grow the workforce. Upon completion, this project will allow our organization the additional capacity needed to continue on our growth trajectory for the next 10 years.

1.2 Purpose

This section describes the purpose of the Project Charter. Not only should this section describe the general content of the plan, but it should also explain why a Project Charter is necessary for this project. The focus here is more on the charter itself rather than the details of the project, which will be described later in the charter.

The purpose of the Building 2 Expansion Project Charter is to communicate the authorization and management approach to project participants and stakeholders. The Project Charter lays the groundwork for informed decisions and planning regarding project direction, outcomes, and delivery. The specific details of the project will be determined going forward based upon the Project Charter.

2.0 Project Overview

2.1 Project Objectives

Projects should be created to achieve objectives which support an organization’s strategic goals and objectives. This section should define the objectives of the project as they relate to those strategic goals and objectives. These objectives must be specific and measurable in order to provide an identifiable level of success.

The objectives for the Building 2 Expansion Project directly support several of the company’s organizational strategic goals. The table below highlights the strategic goals supported by each project objective. Additionally, the project plan developed as a result of this project charter will:

- Develop a project performance measurement plan to measure performance against these objectives.

- Provide a project performance report to report the results.

Organizational Strategic Goals Project Objectives
Expand production output by 10% this fiscal year Complete new building in order to accommodate additional production lines within the next 10 months
Increase the workforce by 10% Hire 35 additional employees to staff the new facility and increased production requirements within the next 6 months (will require training)

2.2 Summary Scope Statement

The summary scope statement should be a general paragraph which roughly outlines the project’s scope. Detail and specifics will be added later in the project lifecycle as detailed planning and project plans are completed.

The Building 2 Expansion Project will require the creation of a new building directly adjacent to our existing facility. The new building must be approximately 100,000 square feet with all of the necessary electrical/power, information technology (IT), telephone, water/plumbing, heating, and air conditioning requirements which will be defined in more detail. The new facility will house three new production lines and all associated equipment. The new facility will also house a small warehousing facility and will require approximately 35 new employees to staff. The building must be completed within 8 months with production lines fully operational within 10 months. New employees must be identified and hired within 6 months and complete all necessary training within 10 months.

2.3 Critical Success Factors

This section should list and describe the factors which have been deemed critical for the project’s success. If any of these factors are not met, the project will be considered a failure.

The following have been determined to be critical success factors. If any of these factors are not met, in the manner described, this project will be considered incomplete or a failure.

- Completion of Building 2, to include all heat/air, telephone, IT, electric, water, and plumbing no later than 8 months from the approval date of this charter without exceeded budget allocation

- Complete the installation and testing of three new production lines in Building 2 no later than 10 months from the approval date of this charter without exceeding budget allocation

- Complete the hiring and training of 35 additional personnel to staff and run Building 2 no later than 10 months from the approval date of this charter without exceeding budget allocation

2.4 Assumptions

This section should list and describe all assumptions being made for the project. These assumptions may relate to organizational support and resources, technology, business processes, or expectations.

The following is a list of assumptions for the Building 2 Expansion project. Please note that this list may be modified as the project and planning move forward.

- Full amount of funding will be available immediately for award of contracts and support for the project

- All construction and associated work will be performed by outside contractors upon award of the contract

- Appropriate departments will be responsible for all work that falls under the scope of their organization. For example, human resources will be responsible for all hiring/staffing and the training group will be responsible for all training of new employees

- All equipment and software for new production lines will be consistent with existing equipment and software

- This project has the full support of all executive leadership

2.5 Constraints

This section should describe any constraints imposed on the project in the areas of scheduling, budget, technology, resources, or other areas. Like the assumptions list, the constraints list may be modified as the project and planning move forward.

The following is a list of constraints for the Building 2 Expansion Project. Please note that this list may be modified as the project and planning move forward.

- All work must be performed within the specified budget allocations

- Internal schedules will be dependent on those provided by contracted vendor(s)

- All new employees must meet existing hiring/staffing guidelines

- All new equipment and software must be compatible with existing systems and processes

2.6 Preliminary Milestones

This section should list the preliminary planned milestones and planned completion dates for the project. This milestone list will also be modified as the project and planning move forward. The list should include both the major milestones expected of the vendor/provider (if applicable) as well as major project management milestones.

The following list of milestones has been developed for the Building 2 Expansion Project. This list is preliminary and will be modified as the project and planning move forward. This list includes planned vendor milestones as well as planned internal project milestones.

Milestone/Deliverable Planned Completion Date
Project Kickoff 1/1/2010
Construction Contract Award 2/1/2010
HR Completes Hiring of 35 New Employees 8/1/2010
Building 2 Construction Complete 10/1/2010
Complete Installation and Testing of New Production Lines 12/1/2010
All Training Completed for New Employees 12/1/2010
Project Completion 1/1/2011

2.7 Preliminary Budget

This section should highlight the budget allocations by category. In the Project Charter there should not be an excessive level of detail as this information will still need to be developed. However, general categories and their budgets that are known at this point in time should be listed.

The project team has determined the following budget categories and amounts in support of the Building 2 Expansion Project. This budget data is preliminary and subject to change. All budget amounts and expenditures require approval from the project sponsor.

Budget Category Amount ($)
Construction Costs (incl. heat/air, electric, water, plumbing, phone, IT capability) $12,000,000
Capital Equipment (Production lines, software, computers, office space) $7,000,000
Hiring/Staffing $2,000,000
Permits, Licenses, Other $1,500,000
Total $22,500,000

3.0 Project Authority and Control

3.1 Project Authority/Sponsor

This section should describe who initiated and has overall authority for the project. The level of which the project authority may commit resources should be explained in this section as well as any specific tasks this person will be responsible for.

Mr. John Doe, Chief Operating Officer, is the Project Authority for the Building 2 Expansion Project. Mr. Doe retains the authority to commit resources to this project in order to ensure its successful completion. Additionally, Mr. Doe will review and approve all budget categories, amounts, expenditures, and any requested changes in funding. Mr. Doe will also provide oversight in awarding the construction contract to a vendor to be determined.

3.2 Project Manager

This section should who is assigned as project manager and their level of authority. It should also discuss the responsibilities of the project manager throughout the project’s lifecycle.

The project manager for the Building 2 Expansion Project is Mr. Tom Jones. Mr. Jones holds the Project Management Professional (PMP) certification and has a long history as a successful project manager within our organization. Mr. Jones will coordinate all tasks and deliverables with internal departments (human resources, training, facility management, IT group, etc) as well as with selected vendor(s) to ensure the successful completion of the project. Mr. Jones will work within the allocated budget and any requests for additional funding must be submitted to, reviewed, and approved by Mr. John Doe. Mr. Jones will conduct weekly project status meetings and communicate metrics and status to the project team, stakeholders, and the COO on a weekly basis.

4.0 Approvals

All project charters must have the approval of the project sponsor and manager. The signatures of these individuals indicate their acknowledgement and understanding of the project charter.

The signatures of the people below indicate an understanding in the purpose and content of this document by those signing it. By signing this document you agree to this as the formal Charter statement sanctioning work to begin on the project described within.

Approver Name Title Signature Date
Doe, J. COO    
Jones, T. Project Manager    
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