INSTRUCTIONS

for Completing the

PROJECT CHARTER
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PURPOSE OF THE PROJECT CHARTER

Charter

sales tool

planning tool

analysis tool

communication tool

The Basics
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Deliverables
Milestones
Addendum

•
•
must

• mm/dd/yyyy
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•
• X
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Before You Begin…

Project_Charter_Form_Template.doc
Project_Charter_Project Name.doc You must type-in
a short/abbreviated name here in order to identify the project for which this Charter has been
created.

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SECTIONS OF THE CHARTER

1. General Project Information

* Project Name Type the project name. (This is a required field.)
* Department Sponsor The next two fields are required.
• What department is the primary Type the full name of the appropriate department (e.g.,
proponent of this project? Inspections Department).
• Who, within that department, is the Type the name of the individual sponsoring the project. (This
Project Sponsor? person must be a decision-maker with the authority to commit
department resources.)
• Is this an Enterprise Project? If this project will impact three or more departments then it is
considered to be Enterprise in scope. Special project selection
and oversight provisions may apply.
Department Co-Sponsor Type the names of all other departments, individuals, and their
contact information.
* Project Rank When a department submits more than one Charter for
consideration in for a given fiscal year, assign a rank order to
each project. Code the most important as 1, then 2, and so
forth. This will help the Project Selection Team know which are
most important to your department.
Note: in a two-year budget cycle, you may submit projects for
both fiscal years. Rank projects for each fiscal year separately
(e.g., for 2005-2006 rank the projects 1 through 5, and rank the
projects beginning in 2006-2007 as 1 through 5).
* Mandated Project A project may be mandated by legislation, organization policy
change, adoption of new standards or other reasons. If the
project is mandated indicate by whom. Also state the
consequence of not meeting the mandate.

Complete one row for each new version of the Charter.

* Version Each major change of the Charter should have a unique version
number. For example, 1.0 is the initial version sent to the
Project Selection Team (PST), 2.0 contains PST changes, 3.0
contains IT Review changes, etc.
* Date Type the date in MM/DD/YYYY format.
* Author Type the name of the individual who drafted the Charter. (This
may not be the name of the individual who typed it into the
electronic format.)
* Reason for Change Enter the reason for the change – e.g., “First Draft (version 1.0)”
or “Vendor has been selected for this project.”

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2. Stakeholders
* Project Manager The Project Manager is the individual from either the Business side or the IT
Department who will coordinate the Project Team and see that the project stays on
track. The Project Manager may also be either the Business Lead or the Technical
Lead.
* Technical Lead The Technical Lead is the individual from the IT Department with the technical
expertise to ensure a successful project.
* Business Lead The Business Lead is the individual with the business expertise needed to ensure a
successful project.
Others List any individuals from all other departments who have a primary interest in the
project. If there are more stakeholders than will fit in the space provided, enter “See
Notes” and put the information in the Notes section below.

3. Vendor Contacts
Complete one row for each primary contact from all vendors involved in the project. This might include
representatives from a software vendor installing a commercial off-the-shelf (COTS) application.

4. Project / Service Description

* Project Purpose / Business Describe the purpose of this project in a way that will grab the
Justification attention of the Project Selection Team or the Executive
Committee. The Charter should make them aware of the true
impact that this project can have on the organization (e.g., “To
produce a Disaster Recovery Plan that protects and maintains
the technical infrastructure that supports Organization functions
in the event of a disaster.”).
* Objectives (in business terms) Objectives are the measurable goals of the project and typically
deal with cost, time, or quantity (e.g., “Effort needed to process
employee time will be reduced from 200 hours a pay period to
30 hours” or “The Organization will save $200,000 in the first
full year of implementation”.).
* Deliverables Deliverables address project planning, project implementation,
and project closure. They are the artifacts used to determine the
success of the project. Deliverables can be hardware, software,
or documents used throughout the project life-cycle. Examples
are a Requirements Document, a Request for Proposals (RFP),
a Test Plan, an Implementation Plan, a Web site, and user
training or user documentation.
Note: The Deliverables List within the Charter should not
exceed one page in length. For a large or complex project,
list high level deliverables as a bulleted list and attach a
Deliverables Addendum with as many details as are
needed.

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4. Project / Service Description

* Clear Statement of What This Project For example, “Phase 1 of the Business Continuation Plan
Will Not Include project will include an analysis of how best to backup and
secure all data held on servers, but will not include
consideration of data held on user systems such as laptops.”
* Project Milestones Proposed start and end dates for Project Phases (e.g.,
Inception, Planning, Construction, Test & Deployment) and other
major milestones. For a large or complex project, list high
level milestones as a bulleted list and attach a Milestones
Addendum with as many details as are needed.
* Major Known Risks (including Risk is anything that could cause the project to fail. Risks can
significant assumptions) be internal (things that the Project Team can control – e.g., lack
of expertise) or external (outside of the organization’s control –
e.g., vendor cannot deliver equipment in time). Which risks are
likely to affect the project? Include any other possible sources of
risk.
Examples:
 “Internal Risk – Steep learning curve due to first use of this
new technology.”
 “External Risk – Pending State legislation may cause a
change in requirements.”
Risk Rating Use the on-line Charter Risk Evaluator to determine the level of
risk for this project. Print out the results and copy the most
significant risks into the space provided.
Constraints A Constraint is the state of being checked, restricted, or
compelled to avoid or perform some action. Project constraints
include anything that may limit the project teams ability to
complete the project successfully. Typically constraints relate to
resources (money), personnel, or schedule.
External Dependencies If the success of this project is dependent on other individuals,
organization departments or external entities, list them. Include
the name and contact information as a “stakeholder” and
describe the dependencies in detail.
Project Strategy How does this project fit in with the organization’s long-term
strategy (e.g., “Installation of the Web Portal is the first step
towards to establishing the Organization as a leader in its
class.”)

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5. Financial / Resources Information

* Funding Source Select the appropriate funding source from one of the following:
 Operating Budget
 Technology Fund
 Grant
 Other*
* If Other, be sure to specify all sources and amount of funding
from each source in the Notes section at the bottom of the
Charter.
* Estimate of Implementation Cost In preparing the estimate of the implementation cost, analysis
should be done to determine the cost of completing the project
or the cost to the organization for not doing the project at all. If
there are significant options as to the scope of the project, list all
options and their relative costs.
Return-on-Investment (ROI) Data Provide if available.
Estimate of IT Department Resources The IT Department should complete this section when IT staff
Required do their review of the project. However, the Project Selection
Team is encouraged to consult with the IT Department early in
the Charter preparation process.
Estimate of other Department Indicate the extent to which business staff will be needed to
Resources Required work on this project (e.g. as Subject Matter Experts, testers,
etc.)

6. Estimated Total Cost of Ownership (TCO) 5-Year

Complete one row for each Fiscal Year of the project.

Fiscal Year Select and insert a Fiscal Year as follows: 2005-2006, 2006-
2007, 2007-2008, 2008-2009, 2009-2010.
Follow directions on the form to get the total.
Capital costs($) Enter the total cost of getting the project up and running. It could
include the cost of hardware and purchased software,
programming costs to customized the purchased software,
development costs for an application developed in-house, etc.
Operational costs ($) Maintenance costs would include on-going licensing fees or
maintenance fees for hardware support.
Estimated 5-Year TCO Follow form directions so that the Charter template will
automatically total the Development and Maintenance columns
and calculate the TCO.

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7. Sourcing Strategy

8. Acquisition Strategy
For both Sourcing Strategy and Acquisition Strategy, place an X in the appropriate adjacent box:
Sourcing Strategy:
 Organization-Managed and Organization personnel will manage and staff the project.
Hosted
 Vendor-Managed and Hosted A vendor will manage and staff the project.
 Organization-Managed, Vendor- The Organization will manage the project, but vendor personnel
Hosted will staff it.
 Vendor-Managed, Organization- A vendor will manage the project, but the organization will provide
Hosted other staff
Acquisition Strategy:
 Sole-Source / Amend One vendor will be selected for the project without the use of an RFP. If
Contract the vendor is already under contract with the organization, the contract
will be amended to include this project.
 RFP / Competitive Bid A Request for Proposals will be issued before a vendor is selected.
 In-House / Custom Develop The project will be completed with organization staff only.
 Other If a combination of vendor(s) will be involved in the project, check this
box. List each vendor and a description of the vendor’s responsibilities
in the Notes section of the Charter (e.g., the organization might issue an
RFP for an EDMS system and contract with another vendor to assist in
the implementation of the pilot projects.).

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9. Types of Vendor Assistance

Place an X in the appropriate adjacent box to select one or more types of vendor assistance:
Turnkey Solution Turnkey is a product or service that is designed, supplied, built, or
installed fully complete and ready to operate. The term implies that the
end user just has to turn a key and start using the product or service.
Supplemental Staffing The organization can hire additional staffing from a vendor on a “time
(Time/Materials) and materials” basis whereby the vendor is paid for each hour the
contractor(s) works. This arrangement is often used for on-going support
or when the effort needed to complete a project is difficult to measure.
Vendor-Assisted (fixed price) For tightly defined projects, a “fixed price” contract can be negotiated
with the organization will pay one price for all services delivered.
Services could include software costs as well as the manpower costs
needed for implementation.
COTS Hardware / Software Commercial off-the-shelf software is a product that is used as-is for a
specific purpose. An example would be a Time-and-Attendance
application. One of the major advantages of COTS software, which is
mass-produced, is its relatively low cost.
Other
None / Not Applicable

10. Signoff
Fill-in the appropriate information for each position listed.

11. List of Addenda

List all supplemental files here.
Deliverables If there are more deliverables than will fit on one page, put a short
summary in the Charter document and enter the rest in a Deliverables
Addendum document (template provided). Type the file name of the
addendum document here.
Milestones If there are more Milestone items than will fit on one page, put a short
summary in the Charter document and enter the rest in a Milestones
Addendum document (template provided). Type the file name of the
addendum document here.

12. Notes
This is a free-form text field. Notes should be brief and concise so that the Executive Committee can review critical
information without getting bogged down in details. Additional documentation can be included as Addenda.

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Addendum 1:

PROJECT CHARTER - DELIVERABLES

* = Required field.

1. General Project Information

* Project Name: Type the name of the project.
* Version Each major change of the Charter should have a unique version number. For
example, 1.0 is the initial version sent to the Project Selection Team (PST),
2.0 contains PST changes, 3.0 contains Tech Team changes, etc.
* Date Type the date in MM/DD/YYYY format.
* Author Type the name of the individual who drafted the Charter. (This may not be the
name of the individual who typed it into an electronic format)
* Reason for Change Enter the reason for the change, e.g., “First Draft (version 1.0)” or “Vendor has
been selected for this project.”

2. * Deliverables
Project sub-products whose satisfactory delivery mark completion of the project (e.g., working computer code,
software manual, user training).
This is a free-form text field that will allow you to enter as much information as required to describe all
project deliverables.

3. Notes
This is a free-form text field without size limitations.

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Addendum 2:

PROJECT CHARTER - MILESTONES

* = Required field.

1. General Project Information

* Project Name: Type the name of the project.
* Version Each major change of the Charter should have a unique version number. For
example, 1.0 is the initial version sent to the Project Selection Team (PST),
2.0 contains PST changes, 3.0 contains Executive Review Team changes, etc.
* Date Type the date in MM/DD/YYYY format.
* Author Type the name of the individual who drafted the Charter. (This may not be the
name of the individual who typed it into an electronic format)
* Reason for Change Enter the reason for the change, e.g., “First Draft (version 1.0)” or “Vendor has
been selected for this project.”

2. * Project Milestones
Proposed start and end dates for Project Phases (e.g., Inception, Planning, Construction, Test & Deployment) and
other major milestones.
This is a free-form text field that will allow you to enter as much information as required to describe all
project milestones.

3. Notes
This is a free-form text field without size limitations.

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